Two FTSE 100 Stocks Under The Spotlight: AZN, AAL

  • Aug 29, 2019 BST
  • Team Kalkine
Two FTSE 100 Stocks Under The Spotlight: AZN, AAL
AstraZeneca PLC Business Overview

AstraZeneca PLC (AZN) is a biopharmaceutical company engaged in the development and commercialisation of prescription medicines. It’s primary focus areas for the treatment of diseases include oncology, respiratory, inflammation & autoimmunity, neuroscience, cardiovascular, renal & metabolism, infection & vaccines. Currently, the group is a member of the FTSE 100 index.

Recent News of AstraZeneca PLC

On 29th August 2019, the company made an announcement about Phase III TULIP 2 (Treatment of Uncontrolled Lupus via the Interferon Pathway) trial for anifrolumab achieving a statistically significant and clinically meaningful reduction in disease activity versus placebo and meeting its primary endpoint.

On 28th August 2019, the company announced the grant of ODD (Orphan Drug Designation) approval to Fasenra from the US FDA (Food and Drug Administration). The medicine is used for the treatment of EoE (eosinophilic oesophagitis).

From the Phase III ETHOS trial, the company released encouraging results on 28th August 2019 for triple-combination treatment Breztri Aerosphere in patients with modest to severe COPD (chronic obstructive pulmonary disease).

On 22nd August 2019, FibroGen Medical Technology Development Co. (AstraZeneca PLC’s partner company) will be authorised marketer for Roxadustat in China. Roxadustat is used as a medication for  anaemia caused by CKD (chronic kidney diseases) in NDD (non-dialysis-dependent) patients.

On 22nd August 2019, the company released another report stating that it has agreed to buy a US FDA PRV (Priority Review Voucher) for a total cash consideration of US$95 million from a subsidiary of Swedish Orphan Biovitrum AB.

AstraZeneca PLC Financial Highlights (H1 FY2019, US$ million)

In H1 FY2019, the company’s revenue increased by 9% at actual basis to $11,314 million as compared with the corresponding period of the last year, while on a CER basis, revenue surged by 14%. The revenue has increased because of the increase in product sales of 12% (actual basis) or 17% (CER basis). In the first half of 2019, the reported gross margin surged by two percentage points to 80%, partly reflecting the mix of manufacturing and Product Sales efficiencies, while the core gross margin rose by one percentage point to 81%.

Reported Operating Profit surged by 9% in the first half (12% at CER) to $1,590 million. The core operating profit surged by 39% (44% at CER) to $3,011 million. In H1 FY19, the reported operating margin was stable at 14%, while the core operating margin climbed by six percentage points (five at CER) to 27%.

Reported EPS increased by 3% to $0.56 in H1 FY19 against the previous year same period data. The company’s core EPS was recorded at $1.62 in H1 FY19, a surge of 38 per cent (40 per cent at CER) from the same period in 2018. The company had an unchanged first interim dividend per share of $0.90.

In FY 2019, the cash performance is projected to include several payments relating to previous business development transactions and most of the value of these payments in the year was settled in the first half. In FY19, the core tax rate will be in the range of 18% to 22%.

The company anticipate that there would be a lesser impact (adverse), due to the foreign exchange rate on core EPS and product sales. The company’s return to growth will be based on the strength of the new medicine. The group reported decent top-line and bottom-line performance with a robust balance sheet. In the latest results, the company had demonstrated decent operating-margin improvement, as its Core Operating Profit also increased over the year.

AZN Share price performance

Daily Chart as at 29-August-19, before the market closed (Source: Thomson Reuters)

On 29th August 2019, at the time of writing (before the market close, at 12:34 PM GMT), AZN shares were trading at GBX 7,367, up by 1.39 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 7,479.00/GBX 5,312.00. At the time of writing, the company’s market capitalisation was recorded at £95.93 billion.

In the past 3 months, AZN shares have delivered a positive return of 22.36 per cent. From beginning of the year to till date, the company’s stock surged by 23.72 per cent. In the past year, the company’s stock has delivered a positive return of 22.84 per cent. 

While writing, the stock’s traded volume before the market close, was hovering around 330,068. Stock's average traded volume for 5 days was 2,180,794.00; 30 days- 1,899,223.13 and 90 days – 1,889,514.12. The beta of the company’ s stock was 0.85, which means it was 15 per cent less volatile in comparison with the index considered as the benchmark.

Anglo American PLC
Business Overview

Anglo American PLC (AAL) is headquartered in London and was founded in 1917. Its principal operations include mining, exploring and processing of metal and minerals globally. The group mainly Explore’s metals such as copper, platinum, diamonds, iron, nickel, manganese and thermal coal. The group has mining operations in Africa, the Americas and Australia.

Recent News of Anglo American PLC

The company recently announced its Cycle 7 2019 sales value of rough diamond sales (De Beers), it was recorded at $280 million.

Anglo American PLC Financial Highlights (H1 FY2019, US$ million)

In H1 FY19, the company’s reported revenue increased by 8 per cent to $14,772 million as compared to $13,698 million in H1FY18. Underlying EBITDA rose by 19 per cent to $5,451 million against the $4,577 million in H1 FY18, while mining EBITDA margin rose to 46 per cent, reflecting strong prices, mainly for iron ore and the PGMs basket. The company’s attributable free cash flow for H1 FY2019 was $1.3 billion, a decrease of 17 per cent as compared with the corresponding period of the last year. Cash flows from operations stood at $4.2 billion, an increase from the previous year same period data. Capital expenditure was up at $1.4 billionProfit attributed to equity shareholders climbed by 46 per cent to $1.9 billion as compared to $1.3 billion in H1 FY18. Underlying earnings per share stood at $1.58, an increase of 28 per cent against the $1.23 in H1 FY18. Earnings per share increased by 45 per cent to $1.48 as compared with the corresponding period of the last year. The board proposed a dividend per share of $0.62, an increase of 27 per cent from the previous year same period data. Group attributable ROCE increased to 22 per cent as compared to 19 per cent in H1 FY18.

The company expects to deliver cost & volume benefits to underlying EBITDA to the tune of $0.4 million in the current financial year. In H2 FY19, the expects a retrieval in Metallurgical Coal from the effect of longwall moves and to recover the production at PGMs in the upcoming half-yearly results.  In H2 FY19, the company expects to start paying its 60 per cent share of capital expenditure relating to Quellaveco. For the second half of the year 2019, Capital expenditure is projected to be in between $2.4 billion and $2.7 billion, in line with the guidance for the year of between $3.8 billion and $4.1 billion.

The company has a decent growth prospect, though there is some uncertainty for the global diamond jewellery business. There is a decent demand for polished diamonds from the US and Chinese retailers. The company’s operations had been affected by US-China trade tensions, slower economic growth and stock market volatility. In India, the significant depreciation of the rupee reduced local demand in US dollar terms, which had put an impact on the earning of the company.

The company has reported its best half-yearly results on the back of an increase in the iron ore prices. Iron ore has been one of the best-performing commodities of 2019. A series of supply disruptions in Brazil and Australia and record steel production in China had boosted prices.
 AAL Share price performance

Daily Chart as at 29-August-19, before the market closed (Source: Thomson Reuters)

On 29th August 2019, at the time of writing (before the market close, at 12:41 PM GMT), AAL shares were trading at GBX 1,745.8, up by 1.64 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 2,294.00/GBX 1,433.64. At the time of writing, the company’s market capitalisation was recorded at £23.91 billion.

In the past 3 months, AAL shares have delivered a negative return of 12.03 per cent. From the beginning of the year to till date, the company’s stock plunged by 1.73 per cent. However, in the past year, the company’s stock has delivered a positive return of 5.61 per cent. 

While writing, the stock’s traded volume before the market close, was hovering around 1,601,234. Stock's average traded volume for 5 days was 4,848,935.00; 30 days- 6,208,989.47 and 90 days – 4,301,853.19. The beta of the company’ s stock as on date was 1.65, which means it was more volatile in comparison with the index considered as the benchmark.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK