AstraZeneca is it a Buy? | AstraZeneca Stock Analysis $AZN

TL;DR

AstraZeneca's financials reveal concerning signs regarding their high dividend payouts and low free cash flow, posing a potential risk for investors.

Transcript

so astrazeneca tell me about it okay astrazeneca market cap because our data is now updated or a cap 130 billion dollars we have a p e of 41. that's an x profit margin of 12 that's a check mark huge gross profit now i'm going to say something here guys this is i i want to make this bet and i want to see if i'm right or not that there was a big drop... Read More

Key Insights

• ✋ AstraZeneca's high valuation and low profit margin raise questions about their financial stability.
• 🥶 The company's dividend payout is higher than their free cash flow, which may require them to take on debt to sustain it.
• 🖤 AstraZeneca's revenue has declined over the past ten years, indicating a potential lack of growth.
• 🧑‍⚕️ Their current assets are not sufficient to cover their current liabilities, posing a risk to their financial health.
• 🤨 AstraZeneca's involvement in producing a COVID-19 vaccine is commendable but raises concerns about their focus and potential impact on other areas.
• ✋ The analysis highlights the importance of patience and discipline in investing, avoiding risky investments even in a high-yield environment.
• ♿ Joining AstraZeneca's Patreon offers access to a community of like-minded investors and exclusive content, including the "Everything Money" software.

Questions & Answers

Q: Why is AstraZeneca's dividend payout concerning?

AstraZeneca's dividend payout of $3.67 billion last year is higher than their five-year average free cash flow of $1.6 billion, raising concerns about their ability to sustain it.

Q: How has AstraZeneca's revenue and profit growth been?

AstraZeneca's revenue has decreased from $33 billion to $26 billion over the past ten years. Their profit growth has been stable, with a slight decrease from $3.5 billion to $3.2 billion.

Q: Does AstraZeneca have enough cash to pay their debts?

AstraZeneca's current assets over current liabilities indicate that they don't have enough cash on hand to cover their debts, which is unusual for a company of this size.

Q: What are the key concerns regarding AstraZeneca's financials?

The key concerns include their high dividend payout compared to their free cash flow, decreasing revenue over the past decade, and their current assets not covering their liabilities.

Summary & Key Takeaways

• AstraZeneca's market cap is $130 billion and has a P/E of 41, indicating a high valuation for a drug company.

• The company paid $3.67 billion in dividends last year, which is more than their five-year average free cash flow of $1.6 billion.

• While AstraZeneca's revenue and profit growth have been stable, their current assets over current liabilities show they don't have enough cash to pay their debts.