AstraZeneca PLC Profit Margin vs. Price To Earning

AZN Stock  USD 80.02  0.81  1.00%   
Based on the measurements of profitability obtained from AstraZeneca PLC's financial statements, AstraZeneca PLC ADR is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in July. Profitability indicators assess AstraZeneca PLC's ability to earn profits and add value for shareholders.

AstraZeneca PLC Net Profit Margin

0.1

At this time, AstraZeneca PLC's Days Sales Outstanding is very stable compared to the past year. As of the 8th of June 2024, Days Of Sales Outstanding is likely to grow to 113.37, while Price To Sales Ratio is likely to drop 2.62. At this time, AstraZeneca PLC's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 8th of June 2024, Net Income Applicable To Common Shares is likely to grow to about 3.2 B, while Operating Income is likely to drop about 5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.870.8195
Notably Up
Very volatile
Net Profit Margin0.10.13
Significantly Down
Slightly volatile
Operating Profit Margin0.220.1788
Fairly Up
Slightly volatile
Return On Assets0.10.0589
Way Up
Slightly volatile
Return On Equity0.140.1521
Significantly Down
Slightly volatile
For AstraZeneca PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AstraZeneca PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AstraZeneca PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AstraZeneca PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AstraZeneca PLC ADR over time as well as its relative position and ranking within its peers.
  

AstraZeneca PLC's Revenue Breakdown by Earning Segment

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Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AstraZeneca PLC. If investors know AstraZeneca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AstraZeneca PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.207
Dividend Share
2.9
Earnings Share
2.03
Revenue Per Share
2.5512
Quarterly Revenue Growth
0.165
The market value of AstraZeneca PLC ADR is measured differently than its book value, which is the value of AstraZeneca that is recorded on the company's balance sheet. Investors also form their own opinion of AstraZeneca PLC's value that differs from its market value or its book value, called intrinsic value, which is AstraZeneca PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AstraZeneca PLC's market value can be influenced by many factors that don't directly affect AstraZeneca PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AstraZeneca PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if AstraZeneca PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AstraZeneca PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

AstraZeneca PLC ADR Price To Earning vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AstraZeneca PLC's current stock value. Our valuation model uses many indicators to compare AstraZeneca PLC value to that of its competitors to determine the firm's financial worth.
AstraZeneca PLC ADR is rated second in profit margin category among its peers. It is rated third in price to earning category among its peers reporting about  777.37  of Price To Earning per Profit Margin. At this time, AstraZeneca PLC's Net Profit Margin is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AstraZeneca PLC's earnings, one of the primary drivers of an investment's value.

AstraZeneca Price To Earning vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

AstraZeneca PLC

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.13 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

AstraZeneca PLC

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
103.39 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

AstraZeneca Price To Earning Comparison

AstraZeneca PLC is currently under evaluation in price to earning category among its peers.

AstraZeneca PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AstraZeneca PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AstraZeneca PLC will eventually generate negative long term returns. The profitability progress is the general direction of AstraZeneca PLC's change in net profit over the period of time. It can combine multiple indicators of AstraZeneca PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.6 B1.7 B
Operating Income8.2 BB
Income Before Tax6.9 B4.5 B
Total Other Income Expense Net-1.3 B-1.2 B
Net Income6.9 B4.4 B
Income Tax Expense938 M729.2 M
Net Income Applicable To Common SharesB3.2 B
Net Income From Continuing OpsB6.3 B
Interest Income301 M342.8 M
Net Interest Income-1.3 B-1.4 B
Change To Netincome-2.2 B-2.1 B
Net Income Per Share 1.92  2.02 
Income Quality 1.50  1.57 
Net Income Per E B T 0.86  0.60 

AstraZeneca Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on AstraZeneca PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AstraZeneca PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AstraZeneca PLC's important profitability drivers and their relationship over time.

Use AstraZeneca PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AstraZeneca PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AstraZeneca PLC will appreciate offsetting losses from the drop in the long position's value.

AstraZeneca PLC Pair Trading

AstraZeneca PLC ADR Pair Trading Analysis

The ability to find closely correlated positions to AstraZeneca PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AstraZeneca PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AstraZeneca PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AstraZeneca PLC ADR to buy it.
The correlation of AstraZeneca PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AstraZeneca PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AstraZeneca PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AstraZeneca PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Information and Resources on Investing in AstraZeneca Stock

When determining whether AstraZeneca PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AstraZeneca PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Astrazeneca Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Astrazeneca Plc Adr Stock:
To fully project AstraZeneca PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AstraZeneca PLC ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AstraZeneca PLC's income statement, its balance sheet, and the statement of cash flows.
Potential AstraZeneca PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although AstraZeneca PLC investors may work on each financial statement separately, they are all related. The changes in AstraZeneca PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AstraZeneca PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.