Astellas Pharma Inc. engages in the manufacture, marketing, import, and export of pharmaceuticals worldwide. The vast majority of the company’s revenue is derived from Japanese markets, followed by the Americas. Royalty income makes up a small percentage of Astellas’ overall sales. Its largest therapeutic area by sales composition is oncology, followed by urology and transplantation. Astellas Pharma Inc. was founded in 1923 and is headquartered in Tokyo, Japan. This week, I fundamentally analyze Astellas Pharma’s stock. I review Astellas Pharma’s business, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account 2021’s free cash flow of $2,085 million figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 3% long term growth rate (growth from 10 year mark to perpetuity), 1,857 million shares outstanding, and $2,147 million of long term debt + non-current liabilities, the DCF analysis yields us an intrinsic value of $19.05 per share.
Timestamp
0:00 Introduction
0:29 Business Overview
2:11 Key Ratios Analysis
9:57 Discounted Cash Flow Analysis / Intrinsic Value
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References:
Astellas Pharma’s Website: here
Morningstar Key Ratios Link: here.
Useful Resources here.
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