AstraZeneca PLC (AZN)
NEUTRALFundamental
65
Price
$168.47
Market Cap
$258.55B
Part 1 · What the company is worth
Overview
AstraZeneca researches, develops and sells prescription medicines, mostly for cancer, heart and kidney disease, diabetes, respiratory conditions and rare diseases. It runs its own manufacturing and sells directly to hospitals, pharmacies and health systems worldwide rather than through licensing partners for most of its portfolio. Growth increasingly comes from cancer drugs, an area where new AstraZeneca medicines have taken share from older standards of care over the past decade.
How it makes money
Revenue is the price health systems and payers agree to reimburse for each medicine, set through negotiation that varies hugely by country — list prices in the U.S. against government-negotiated prices in most of the rest of the world. Margins are highest while a drug is still under patent protection and falls off sharply once generic or biosimilar copies can be sold, so revenue depends on continuously launching new patent-protected medicines to replace older ones as they lose exclusivity.
Revenue by segment
Cancer treatments, the company's largest and fastest-growing therapy area, anchored by lung and breast cancer medicines.
Medicines for heart failure, chronic kidney disease and diabetes, a mature but still growing part of the portfolio.
High-priced medicines for small patient populations, acquired mainly through the Alexion acquisition, with less price sensitivity than mass-market drugs.
Treatments for asthma, COPD and related immune conditions, one of AstraZeneca's original therapeutic strongholds.
Competitive moat
Patents and licences · WidePatents on approved medicines give AstraZeneca years of exclusive pricing power before any generic competitor can legally copy a drug, and regulatory approval itself is a high, expensive barrier that keeps most potential rivals out entirely. The moat is wide across the portfolio as a whole, even though it expires medicine by medicine as individual patents run out, which is why continuous pipeline renewal matters so much.
What drives demand
DefensivePeople need treatment for cancer, heart disease and diabetes regardless of how the economy is doing, which makes underlying demand for AstraZeneca's medicines largely non-cyclical. The real swing factor is not the business cycle but government and insurer policy on drug pricing and reimbursement, which can move revenue sharply even when patient demand is stable.
Key risks
- Pipeline and clinical trial failure — Future growth depends on new medicines succeeding in clinical trials and reaching launch; delays or failures in the pipeline directly reduce the drugs available to replace those losing patent protection.
- Patent expiry and generic competition — Key medicines including Tagrisso and Farxiga have defined patent expiry dates over the coming years, after which generic or biosimilar versions can sharply cut both price and volume.
- Pricing and market access pressure — Governments and insurers around the world, including U.S. drug-pricing policy, continually push to lower what they pay for medicines, squeezing margins even on drugs still under patent.
- Regulatory and ethical approval risk — Every new medicine must clear regulatory and ethical requirements across many countries, and standards can change, delaying or blocking launches that the growth plan assumes will happen on schedule.
- Supply chain and cybersecurity vulnerabilities — Manufacturing and distribution span many countries and complex supply chains, and the company also flags IT and cybersecurity risks to its research, manufacturing and commercial systems.
The case for
Buyers argue that AstraZeneca's oncology franchise is still taking share from older cancer treatments, that a broad late-stage pipeline across oncology, cardiovascular and rare disease reduces reliance on any single drug, and that defensive, non-discretionary demand for its medicines supports steady growth largely independent of the economic cycle.
The case against
Sellers fear that key medicines face patent expiry within a defined and known window, that global pricing pressure is a one-directional headwind rather than a cyclical one, and that any stumble in the late-stage pipeline would expose how much of future growth depends on trials that have not yet read out.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on August 23, 2026 with claude-opus-5 — shared with all users
Its immunotherapy Keytruda is the direct rival of AstraZeneca's Imfinzi for the same lung and gastrointestinal cancer patients treated by the same hospital oncology departments.
Roche competes head-on in breast and lung cancer, the two areas where AstraZeneca's Enhertu and Tagrisso generate most of their sales.
Its Rybrevant-Lazcluse combination attacks the same EGFR-mutated lung cancer patients that Tagrisso, AstraZeneca's largest oncology product, has long treated.
It sells competing immuno-oncology and haematology medicines to the same oncologists and negotiates with the same payers and hospital formularies.
AbbVie competes for the same immunology and blood-cancer prescriptions and, like AstraZeneca, is building an antibody-drug-conjugate portfolio for solid tumours.
The other large UK-listed pharmaceutical group, competing directly in respiratory medicines and vaccines for the same European and US patients.
Balance Sheet & Liquidity
Revenue
$61.37B
Trailing 12 months (through 6/30/2026)
Net Income
$10.45B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$4.91B
Total Equity
$50.29B
Total Liabilities
$32.35B
Current Ratio
0.89
Interest Coverage
-
Debt/EBITDA
1.63
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$152.77
Current Price
$168.47
Margin of Safety
-10.3%
Fair Value Range
$99.30 - $206.25
Estimation Methods
Valuation Metrics
P/E Ratio
24.99
ROE
22.0%
P/B Ratio
5.14
P/FCF
52.71
Gross Margin
81.7%
ROIC
13.8%
Profitability Radar
Value Creation (Economic Moat)
ROIC
13.8%
WACC
10.3%
ROIC − WACC
+3.5 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (13)
- Price CAGR 11.75%
- ROIC 13.8%
- Gross Margin 81.7%
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- ROE 21.7%
- Revenue Growth 5Y 17.1%
- Analyst Consensus 83% Buy
- PEG Ratio 1.07
- Earnings Quality (OCF/NI) 1.34
- Net Margin Trend 17.4% vs 13.0%
Failed (6)
- P/FCF 52.71
- P/B Ratio 5.14
- CapEx intensity
- DCF valuation (Overvalued)
- Earnings Surprise avg 0.7%
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Pascal Claude Roland Soriot D.V.M., M.B.A. | CEO & Executive Director | 66 |
| Dr. Aradhana Sarin M.D. | CFO & Executive Director | 51 |
| Ms. Pam P. Cheng | EVP of Global opt. & IT, Chief Sust. Officer and Member of External Sust.Adv. Board | 55 |
| Mr. Joris Silon | Head of Investor Relations | - |
| Mr. Jeffrey Pott J.D. | CHRO, Chief Compliance Officer, General Counsel & Member of External Sustainability Advisory Board | - |
| Dr. Ruud Dobber Ph.D. | Executive Vice-President of BioPharmaceuticals Business Unit | - |
| Dr. Susan Mary Galbraith M.D., Ph.D. | Executive Vice President of Oncology R&D | 59 |
| Ms. Iskra Reic | Executive Vice President of International | - |
| Mr. David Fredrickson | Executive Vice-President of Oncology Haematology Business Unit | 50 |
| Ms. Ruth March FMEDSCI, O.B.E., Ph.D. | Senior VP of Precision Medicine - R&D Oncology | - |
Audit Risk
3
Board Risk
8
Compensation Risk
8
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for AZN, sourced from Markets Gazette.
- 22d agoNEUTRALAstraZeneca Said to Have Explored Bristol Myers Merger (Video)
AstraZeneca PLC reportedly explored a potential merger with Bristol Myers Squibb, according to sources familiar with the matter. While no formal discussions are currently underway, the exploration indicates AstraZeneca's strategic interest in significant consolidation within the pharmaceutical sector. Such a deal, if realized, would create a pharmaceutical giant with a formidable drug pipeline and market presence. Investors will monitor any further developments, as a merger of this scale could significantly alter the competitive landscape and offer substantial synergies, but also carries integration risks.
- 23d agoNEGATIVEAstraZeneca Shares Fall on Deal Talks With Bristol Myers
AstraZeneca Plc (AZN) shares experienced a decline following reports that the company has been in discussions regarding a potential acquisition of Bristol-Myers Squibb Co. (BMY). While the specifics of the deal remain undisclosed, the mere exploration of such a "megadeal," which could be the largest in pharmaceutical history, has introduced uncertainty for AstraZeneca investors. The potential financial strain and strategic complexities associated with such a large-scale merger may be weighing on investor sentiment, leading to the share price drop. Further details on the proposed terms and AstraZeneca's financial capacity will be crucial for assessing the long-term implications.
- 7/9/2026NEGATIVEAstraZeneca's Rare Drug Trial Failure Sends Shares Plunging
AstraZeneca Plc experienced a significant share price decline, falling over 10%, following the unsuccessful outcome of a clinical trial for a novel heart drug. The trial aimed to assess the drug's efficacy in preventing cardiac issues in patients with a rare disease, but failed to demonstrate the desired benefits. This setback directly impacts the company's pipeline and future revenue projections, leading to a sharp sell-off by investors concerned about the drug's commercial viability and the broader implications for the company's research and development success.
- 6/9/2026POSITIVEAstraZeneca's GLP-1 Pill Heads To Late-Stage Trials
AstraZeneca's oral GLP-1 drug, elecoglipron, is progressing to Phase 3 clinical trials, buoyed by positive weight loss and diabetes management data presented at the ADA 2026 conference. This advancement marks a significant step for the company in the highly competitive obesity and diabetes treatment market. The transition to late-stage trials suggests confidence in the drug's efficacy and safety profile, potentially positioning AstraZeneca to capture a substantial share of this growing therapeutic area. Investors will monitor trial outcomes for further validation of its commercial prospects.
- 6/5/2026POSITIVEAstraZeneca Broadens US Growth Push
AstraZeneca's CFO, Aradhana Sarin, outlined a strategic initiative to expand the company's US shareholder base, signaling a commitment to strengthening its presence in the American market. The pharmaceutical giant has set an ambitious target of achieving $80 billion in revenue by 2030, a significant increase that underscores confidence in its product pipeline and market expansion strategies. This dual focus on investor relations and aggressive growth projections suggests a positive outlook for the company, potentially attracting new investment and bolstering existing shareholder confidence.
- 5/18/2026POSITIVEAstraZeneca Scores Key FDA Wins Across Cardiovascular And Oncology Portfolios
AstraZeneca has secured two significant FDA approvals, bolstering its cardiovascular and oncology portfolios. Baxfendy has been approved for hypertension, addressing a large and persistent market need. Additionally, Enhertu received approval for early-stage HER2-positive breast cancer treatment, expanding its therapeutic reach. These dual approvals are expected to drive substantial revenue growth and further solidify AstraZeneca's market position in critical therapeutic areas, offering a positive outlook for investors.
- 3/27/2026POSITIVEAstraZeneca Strengthens Position In COPD Race With Successful Trials
AstraZeneca has announced positive Phase 3 trial results for its investigational drug tozorakimab in treating Chronic Obstructive Pulmonary Disease (COPD). The drug demonstrated a significant reduction in exacerbations and a favorable safety profile across a wide range of patient demographics. This success strengthens AstraZeneca's pipeline and competitive position in the respiratory disease market, particularly against rivals in the COPD space. For investors, this news signals potential future revenue growth and a bolstered market share in a significant therapeutic area, reinforcing the company's innovation capabilities.
via Markets Gazette