AstraZeneca PLC Ordinary Shares (AZN)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $7.9 billion in annual free cash flow (2.6% yield on market cap)
• High return on equity of 22.8% demonstrating efficient capital deployment
• Established organization with 96,100 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($68) with negative 187% margin of safety—limited downside protection

AI Analysis

AstraZeneca PLC Ordinary Shares is a mega-cap healthcare company valued at $302.1 billion. The business generates $58.7 billion in annual revenue with a 4.0% net margin and $7.9 billion in free cash flow. From a quality standpoint, AstraZeneca shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.1. On valuation, the stock is trading at a premium 29.4x earnings, with trades far above its Graham Number ($68) with no margin of safety. Growth dynamics show revenue growing at 4.1% and profit growth of 55.1%. The 1.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

AstraZeneca's dominant market position and scale advantages create a durable moat that supports premium valuation over time. With $7.9 billion in annual free cash flow (2.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Sluggish 4% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer