Biogen Inc. (NASDAQ: BIIB)

Sector: Healthcare Industry: Drug Manufacturers - General CIK: 0000875045
Market Cap 28.38 Bn
P/B 1.55
P/E 21.95
P/S 2.87
ROIC (Qtr) 5.48
Div Yield % 0.00
Rev 1y % (Qtr) -7.14
Total Debt (Qtr) 6.58 Bn
Debt/Equity (Qtr) 0.36

About

Biogen Inc., a global biopharmaceutical company, operates in the healthcare sector with a focus on discovering, developing, and delivering innovative therapies for people living with serious and complex diseases worldwide. The company's main business activities include the development and commercialization of therapies for neurology, specialized immunology, and rare diseases. Biogen's operations span across various countries and regions, with a strong presence in North America, Europe, and Asia. The company generates revenue through a range of...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 2.02B exceeds capital expenditure of 185.40M by 10.89x, indicating strong organic growth funding capability.
  • Retained earnings of 20.55B provide full 3.12x coverage of long-term debt 6.58B, indicating strong internal capital position.
  • Tangible assets of 13.77B provide robust 4.72x coverage of other current liabilities 2.92B, indicating strong asset backing.
  • Operating cash flow of 2.20B provides solid 0.66x coverage of current liabilities 3.35B, showing strong operational health.
  • Operating cash flow of 2.20B fully covers other non-current liabilities 1.26B by 1.76x, showing strong long-term stability.

Bear case

  • Operating cash flow of 2.20B barely covers its investment activities of (1.37B), with a coverage ratio of -1.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.37B) provide weak support for R&D spending of 1.78B, which is -0.77x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 1.56B show weak coverage of depreciation charges of 787.80M, with a 1.98 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 2.02B represents just -119.48x of debt issuance (16.90M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Tax assets of 292.50M provide limited offset against tax liabilities of 622.40M, which is 0.47x, indicating potential future cash flow pressure from tax obligations.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - General
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LLY ELI LILLY & Co 940.24 Bn 84.66 19.19 42.51 Bn
2 JNJ Johnson & Johnson 656.09 Bn 49.20 10.65 45.80 Bn
3 AMGN Amgen Inc 389.67 Bn 89.91 26.60 54.59 Bn
4 ABBV AbbVie Inc. 363.54 Bn 129.05 16.59 68.74 Bn
5 MRK Merck & Co., Inc. 320.49 Bn 202.84 7.87 41.37 Bn
6 NVS Novartis Ag 304.60 Bn 21.78 5.37 35.46 Bn
7 AZN Astrazeneca Plc 291.12 Bn 30.97 5.01 32.63 Bn
8 NVO Novo Nordisk A S 219.30 Bn 13.62 4.51 20.59 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.06 2.39
EV to Cash from Ops. EV/CFO 14.11 27.43
EV to Debt EV to Debt 4.73 6.41
EV to EBIT EV/EBIT 19.98 29.56
EV to EBITDA EV/EBITDA 13.27 21.95
EV to Free Cash Flow [EV/FCF] EV/FCF 15.40 39.77
EV to Market Cap EV to Market Cap 1.10 1.28
EV to Revenue EV/Rev 3.14 7.09
Price to Book Value [P/B] P/B 1.55 12.10
Price to Earnings [P/E] P/E 21.95 73.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 65.92
Dividend per Basic Share Div per Share (Qtr) 0.00 2.81
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 37.42
Interest Coverage Interest Coverage 0.00 20.26
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 31.64 -9.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.67 96.72
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.18
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.79 74.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -11.18 29.18
EBIT Growth (1y) % EBIT 1y % (Qtr) -18.34 66.23
EBT Growth (1y) % EBT 1y % (Qtr) -18.34 310.53
EPS Growth (1y) % EPS 1y % (Qtr) -21.23 352.41
FCF Growth (1y) % FCF 1y % (Qtr) -22.47 47.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.64 8.06
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.38
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.27
Cash Ratio Cash Ratio (Qtr) 0.90 2.11
Current Ratio Curr Ratio (Qtr) 2.68 6.17
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 -0.40
Interest Cover Ratio Interest Cover Ratio 0.00 20.26
Times Interest Earned Times Interest Earned 0.00 20.26
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.70 -13.61
EBIT Margin % EBIT Margin % (Qtr) 15.74 -10.56
EBT Margin % EBT Margin % (Qtr) 15.74 -25.71
Gross Margin % Gross Margin % (Qtr) 75.70 64.91
Net Profit Margin % Net Margin % (Qtr) 13.10 -34.99