Is Biogen Stock a Good Investment?

Biogen Investment Advice

  BIIB
To provide specific investment advice or recommendations on Biogen Inc stock, we recommend investors consider the following general factors when evaluating Biogen Inc. This will help you to make an informed decision on whether to include Biogen in one of your diversified portfolios:
  • Examine Biogen's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Biogen's leadership team and their track record. Good management can help Biogen navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Biotechnology space and any emerging trends that could impact Biogen's business and its evolving consumer preferences.
  • Compare Biogen's performance and market position to its competitors. Analyze how Biogen is positioned in terms of product offerings, innovation, and market share.
  • Check if Biogen pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Biogen's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Biogen Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Biogen Inc is a good investment.
 
Sell
 
Buy
Buy
Macroaxis provides advice on Biogen Inc to complement and cross-verify current analyst consensus on Biogen Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Biogen is not overpriced, please confirm all Biogen Inc fundamentals, including its shares owned by institutions, price to sales, net income, as well as the relationship between the price to earning and gross profit . Given that Biogen Inc has a price to earning of 14.83 X, we suggest you to validate Biogen Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Biogen Stock

Researching Biogen's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.95. Some equities with similar Price to Book (P/B) outperform the market in the long run. Biogen Inc recorded earning per share (EPS) of 8.01. The entity had not issued any dividends in recent years. The firm had 3:1 split on the 18th of January 2001.
To determine if Biogen is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Biogen's research are outlined below:
Biogen Inc has a poor financial position based on the latest SEC disclosures
Over 93.0% of the company shares are held by institutions such as insurance companies
Latest headline from accesswire.com: Investors who lost money on Biogen Inc. should contact Levi Korsinsky about pending Class Action - BIIB

Biogen Quarterly Long Term Debt

6.29 Billion

Biogen uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Biogen Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Biogen's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
13th of February 2024
Upcoming Quarterly Report
View
23rd of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
13th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Biogen's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Biogen's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2000-07-18
2000-06-300.080.090.0112 
1999-04-20
1999-03-310.030.040.0133 
1999-02-09
1998-12-310.040.050.0125 
1998-02-05
1997-12-310.050.060.0120 
1996-10-30
1996-09-30-0.05-0.040.0120 
2000-02-02
1999-12-310.070.05-0.0228 
1998-04-20
1998-03-310.010.030.02200 
1997-11-11
1997-09-30-0.06-0.08-0.0233 

Know Biogen's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Biogen is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Biogen Inc backward and forwards among themselves. Biogen's institutional investor refers to the entity that pools money to purchase Biogen's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
T. Rowe Price Associates, Inc.2024-03-31
1.6 M
Beutel, Goodman & Company Ltd.2024-03-31
1.6 M
Clearbridge Advisors, Llc2024-03-31
1.6 M
Legal & General Group Plc2024-03-31
1.6 M
Norges Bank2023-12-31
1.5 M
Northern Trust Corp2024-03-31
1.4 M
Bank Of New York Mellon Corp2024-03-31
1.4 M
Dimensional Fund Advisors, Inc.2024-03-31
1.3 M
Deutsche Bank Ag2024-03-31
1.1 M
Vanguard Group Inc2024-03-31
16.6 M
Primecap Management Company2024-03-31
16.2 M
Note, although Biogen's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Biogen's market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 33.5 B.

Market Cap

4.18 Billion

Biogen's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.09  0.08 
Return On Capital Employed 0.06  0.08 
Return On Assets 0.04  0.06 
Return On Equity 0.08  0.10 
The company has Profit Margin (PM) of 0.12 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.27 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.27.
Determining Biogen's profitability involves analyzing its financial statements and using various financial metrics to determine if Biogen is a good buy. For example, gross profit margin measures Biogen's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Biogen's profitability and make more informed investment decisions.

Biogen's Earnings Breakdown by Geography

The data published in Biogen's official financial statements typically reflect Biogen's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Biogen's quantitative information. For example, before you start analyzing numbers published by Biogen accountants, it's essential to understand Biogen's liquidity, profitability, and earnings quality within the context of the Biotechnology space in which it operates.
Please note, the presentation of Biogen's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Biogen's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Biogen's management manipulating its earnings.

Evaluate Biogen's management efficiency

Biogen Inc has return on total asset (ROA) of 0.0486 % which means that it generated a profit of $0.0486 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0805 %, meaning that it created $0.0805 on every $100 dollars invested by stockholders. Biogen's management efficiency ratios could be used to measure how well Biogen manages its routine affairs as well as how well it operates its assets and liabilities. At present, Biogen's Return On Capital Employed is projected to increase slightly based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.06, whereas Return On Tangible Assets are forecasted to decline to 0.08. At present, Biogen's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 21 B, whereas Non Currrent Assets Other are forecasted to decline to about 270.1 M.
Last ReportedProjected for Next Year
Book Value Per Share 102.28  107.39 
Tangible Book Value Per Share 1.50  1.43 
Enterprise Value Over EBITDA 16.83  17.67 
Price Book Value Ratio 2.53  2.40 
Enterprise Value Multiple 16.83  17.67 
Price Fair Value 2.53  2.40 
Enterprise Value6.4 B4.2 B
The analysis of Biogen's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Biogen's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Biogen Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
(0.04)

Basic technical analysis of Biogen Stock

As of the 15th of July 2024, Biogen shows the Downside Deviation of 1.65, risk adjusted performance of 0.0691, and Mean Deviation of 1.4. Biogen Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Biogen's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Biogen insiders, such as employees or executives, is commonly permitted as long as it does not rely on Biogen's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Biogen insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Biogen's Outstanding Corporate Bonds

Biogen issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Biogen Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Biogen bonds can be classified according to their maturity, which is the date when Biogen Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Biogen's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Biogen's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Biogen's intraday indicators

Biogen intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Biogen stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Biogen Corporate Filings

8K
25th of June 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
20th of June 2024
Other Reports
ViewVerify
F4
3rd of May 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
26th of April 2024
Other Reports
ViewVerify
Biogen time-series forecasting models is one of many Biogen's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Biogen's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Biogen Stock media impact

Far too much social signal, news, headlines, and media speculation about Biogen that are available to investors today. That information is available publicly through Biogen media outlets and privately through word of mouth or via Biogen internal channels. However, regardless of the origin, that massive amount of Biogen data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Biogen news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Biogen relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Biogen's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Biogen alpha.

Biogen Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Biogen can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Biogen Inc Historical Investor Sentiment

Investor biases related to Biogen's public news can be used to forecast risks associated with an investment in Biogen. The trend in average sentiment can be used to explain how an investor holding Biogen can time the market purely based on public headlines and social activities around Biogen Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Biogen's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Biogen and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Biogen news discussions. The higher the estimate score, the more favorable the investor's outlook on Biogen.

Biogen Maximum Pain Price across 2024-07-19 Option Contracts

Biogen's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Biogen close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Biogen's options.

Biogen Corporate Executives

Elected by the shareholders, the Biogen's board of directors comprises two types of representatives: Biogen inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Biogen. The board's role is to monitor Biogen's management team and ensure that shareholders' interests are well served. Biogen's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Biogen's outside directors are responsible for providing unbiased perspectives on the board's policies.
Michael CPAExecutive CFOProfile

Additional Information and Resources on Investing in Biogen Stock

When determining whether Biogen Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Biogen's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Biogen Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Biogen Inc Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Biogen Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Biogen. If investors know Biogen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Biogen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.011
Earnings Share
8.01
Revenue Per Share
66.688
Quarterly Revenue Growth
(0.07)
Return On Assets
0.0486
The market value of Biogen Inc is measured differently than its book value, which is the value of Biogen that is recorded on the company's balance sheet. Investors also form their own opinion of Biogen's value that differs from its market value or its book value, called intrinsic value, which is Biogen's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Biogen's market value can be influenced by many factors that don't directly affect Biogen's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Biogen's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Biogen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biogen's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.