BIOGEN INC. (BIIB) Stock Analysis
BIOGEN INC. (BIIB) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
BIOGEN INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 5.5% | Below expectations |
| FCF Margin | 20.4% | Strong cash generation |
| Debt/Equity | -34.5x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 20.4% provides financial flexibility for growth and shareholder returns.
Explore BIOGEN INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: BIOGEN INC. earns 5.5% ROIC, Top 50% in Healthcare
BIOGEN INC.'s trailing-twelve-month ROIC of 5.5% ranks Top 50% in Healthcare companies (sector median: -3.9%), driven by NOPAT margin of 13.1% combined with asset turnover of 0.3x. Source: 10-Q filed 2025-10-30. Gross margin of 75.7% with operating margin at 15.7% reflects strong pricing power.
| Metric | BIIB | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.5% | Warning | Above sector median of -3.9% |
| Return on Equity (ROE) | -1200.5% | Red flag | Moderate equity returns |
| Gross Margin | 75.7% | Excellent | Strong pricing power |
| Operating Margin | 15.7% | Good | Efficient operations |
Cash Flow: BIOGEN INC. generates $2.0B FCF at 20.4% margin, positive NaN/8 quarters
BIOGEN INC. generated $2.0B in free cash flow (TTM), a 20.4% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.7x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | BIIB | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 20.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.0B | Good | Positive cash generation |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: BIOGEN INC. at -34.5x leverage
BIOGEN INC.'s debt-to-equity ratio of -34.5x reflects conservative leverage. Total debt of $6.3B offset by $3.8B in cash. Source: 10-Q filed 2025-10-30.
| Metric | BIIB | Rating | Context |
|---|---|---|---|
| Debt to Equity | -34.5x | Excellent | Conservative capital structure |
| Net Cash Position | $-2.5B | Warning | Net debt position |
Valuation: BIOGEN INC. trades at 19.9x earnings
BIOGEN INC. trades at a P/E of 19.9x. Free cash flow yield of 7.8% offers attractive cash returns relative to price.
| Metric | BIIB | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.9x | Adequate | Reasonable valuation |
| EV/Sales | 2.5x | Good | Attractive revenue multiple |
| FCF Yield | 7.8% | Good | Attractive cash return |
Capital Allocation: BIOGEN INC. returns 0.0% shareholder yield
BIOGEN INC.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-10-30.
| Metric | BIIB | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.5% | Top 50% | - |
| Free Cash Flow Margin | 20.4% | Top 5% | - |
| Gross Margin | 75.7% | Top 50% | 1.2x above |
| Operating Margin | 15.7% | Top 25% | 8.2x above |
| Return on Equity (ROE) | -1200.5% | Top 5% | - |
| P/E Ratio | 19.9x | N/A | - |
Financial Scorecard
| Metric | BIIB | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 5.5% | Warning | Top 50% of sector (median: -3.9%) |
| Free Cash Flow Margin | 20.4% | Excellent | Top 5% of sector (median: 0.0%) |
| Gross Margin | 75.7% | Excellent | Top 50% of sector (median: 64.0%) |
| Debt to Equity Ratio | -34.5x | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 19.9x | Adequate | Fair value |
| Free Cash Flow Yield | 7.8% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is BIOGEN INC.'s Return on Invested Capital (ROIC)?
BIOGEN INC. (BIIB) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.5%. This compares above the sector median of -3.9%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is BIOGEN INC.'s Free Cash Flow Margin?
BIOGEN INC. (BIIB) has a free cash flow margin of 20.4%, generating $2.0 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is BIOGEN INC. stock overvalued or undervalued?
BIOGEN INC. (BIIB) trades at a P/E ratio of 19.9x, which is above the sector median of N/A. The EV/Sales multiple is 2.5x. Free cash flow yield is 7.8%, which represents an attractive cash return to investors.
Q: What is BIOGEN INC.'s revenue and earnings growth?
BIOGEN INC. (BIIB) grew revenue by 2.2% year-over-year. Earnings per share decreased by 21.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does BIOGEN INC. compare to competitors in Healthcare?
Compared to other companies in Healthcare, BIOGEN INC. (BIIB) shows: ROIC of 5.5% is above the sector median of -3.9% (Top 34%). FCF margin of 20.4% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 75.7% is 11.7 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with BIOGEN INC.?
Investors in BIOGEN INC. (BIIB) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.