Profitability Margin Analysis Delights Active Investors: AstraZeneca PLC (NYSE:AZN)

AstraZeneca PLC (NYSE:AZN) share price swings at $30.30 with percentage change of 0.76% in most recent trading session.

Pool Consensus

Fundamentalist can give brighter side of a picture but an analyst can glow the darker parts stored in any investment. Let us view how analysts have ranked AZN in recent few months. In ratings table the AZN given BUY ratings by 22 analysts in current phase and 3 analysts suggest it as overweight security. The 3 number of analyst/s have SELL recommendation for current month on AZN. While 11 number of analysts gave ratings for HOLD in current as compared to 1 analyst giving UNDERWEIGHT. As per remarks given by WSJ, overall consensus pool recommends it as Overweight security.

The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $0.42 at current month while compared with $0.43 in a month ago. The stock next year first quarter current estimate trend for EPS was for $0.42 and on annual basis FY 2016 estimate trends at current was for $1.85 as compared to one month ago of $1.86, and for next year per share earnings estimates have $2.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, AstraZeneca PLC (NYSE:AZN) has positive 15.20% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. The firm has gross profit margin of 82.60% and operating profit margin calculated as 21.30%. Moving toward returns ratio, AZN has returns on investment of 15.00% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 5.50% that gives an idea about how efficient management is at using its assets to generate earnings. AstraZeneca PLC (NYSE:AZN) has returns on equity of 24.90%, which is measuring a corporation’s profitability by revealing how much profit generates by AZN with the shareholders’ money. The firm attains analyst recommendation of 2.20 on scale of 1-5 with week’s performance of 2.71%.

Effective Investment Valuation

To persist focus on investment valuation, AstraZeneca PLC (NYSE:AZN) also have significant role in eyes of active investors, it has price to earnings growth of 2.85, which is a valuation metric for determining relative trade-off among price of a stock.

AZN has price to earnings growth ratio of 2.85, it is adding factors in a stock’s estimated earnings growth into its current valuation that showed 21.92 by price to earning ration. Furthermore, it has price to sale ratio of 3.33 that signifies the value placed on each dollar of a firm’s sales or incomes. The firm’s price to book was 5.16, which can be compared with current price to get idea about under or overvalue of stock. Forward Price to Earnings ratio of AZN attains value of 15.40 that is projecting or estimating EPS for the next 12-months and its follow by traders who believe on anticipates of a firm’s future rather than past performance.

To have technical views, liquidity ratio of AstraZeneca PLC (NYSE:AZN) calculated as 0.90 to match up with its debt to equity ratio of 1.13. The float short ration was 1.15%; as compared to Short Ratio were 4.37. The firm has institutional ownership of 13.50%, while insider ownership included 0.50%.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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