Biogen Inc.
Biogen Inc. Fundamental Analysis
Biogen Inc. (BIIB.SW) shows weak financial fundamentals with a PE ratio of 17.70, profit margin of 15.41%, and ROE of 6.51%. The company generates $6.2B in annual revenue with weak year-over-year growth of -1.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BIIB.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakBIIB.SW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBIIB.SW trades at attractive valuation levels.
Growth Score
ModerateBIIB.SW shows steady but slowing expansion.
Financial Health Score
ExcellentBIIB.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateBIIB.SW maintains healthy but balanced margins.
Key Financial Metrics
Is BIIB.SW Expensive or Cheap?
P/E Ratio
BIIB.SW trades at 17.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BIIB.SW's PEG of 0.99 indicates potential undervaluation.
Price to Book
The market values Biogen Inc. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.79 times EBITDA. This is generally considered low.
How Well Does BIIB.SW Make Money?
Net Profit Margin
For every $100 in sales, Biogen Inc. keeps $15.41 as profit after all expenses.
Operating Margin
Core operations generate 24.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.51 in profit for every $100 of shareholder equity.
ROA
Biogen Inc. generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Biogen Inc. produces operating cash flow of $1.05B, showing steady but balanced cash generation.
Free Cash Flow
Biogen Inc. generates strong free cash flow of $958.61M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.54 in free cash annually.
FCF Yield
BIIB.SW converts 5.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BIIB.SW Stacks Against Its Sector Peers
| Metric | BIIB.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.70 | 28.48 | Better (Cheaper) |
| ROE | 6.51% | 777.00% | Weak |
| Net Margin | 15.41% | -20226.00% (disorted) | Strong |
| Debt/Equity | 0.37 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.50 | 4.66 | Strong Liquidity |
| ROA | 4.27% | -14638.00% (disorted) | Weak |
BIIB.SW outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Biogen Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.58%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-64.41%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-47.83%
Industry Style: Defensive, Growth, Innovation
Declining