Recent News
On July 30–31, 2025 Biogen reported Q2 results with total revenue of $2.65 billion, adjusted EPS of $5.47 versus consensus $3.87, and the company raised its fiscal 2025 adjusted EPS outlook.
On Sept. 3, 2025 Eisai initiated a rolling supplemental biologics license application to the U.S. FDA for a subcutaneous starting-dose formulation of LEQEMBI, naming the product LEQEMBI IQLIK; Biogen participates in commercialization.
LEQEMBI launched in Austria on Aug. 25, 2025 and in Germany on Sept. 1, 2025, with subsequent regulatory and commercial activity in other markets reported through late September 2025.
Technical Analysis
Directional indicators show an emerging trend: ADX at 20.44 signals an emerging trend strength while DI+ at 28.73 has peak-and-reversed, indicating a bearish directional shift; DI- at 18.46 is decreasing, indicating reduced negative pressure. Together these readings imply directional conditions remain fragile and susceptible to short-term swings.
MACD registered a dip-and-reversal, denoting bullish momentum, but the MACD value (1.56) remains just below the signal line (1.60), so a confirmed bullish crossover has not yet occurred and momentum confirmation remains pending.
MRO at 23.34 sits positive and shows a peak-and-reversal, indicating the price currently sits above the model target and faces a likelihood of downward pressure as momentum normalizes.
RSI at 55.59 and increasing signals mild bullish momentum without overbought readings; short-term momentum indicators favor modest continuation rather than an explosive move.
Price sits at $150.43, above the 12-day EMA ($147.75) and well above the 200-day average ($135.13), with the 20-day average at $146.93 and price slightly above the 1× upper Bollinger band ($150.21). The 12-day EMA trend increasing and the proximity to the upper band suggest upside momentum exists but faces near-term resistance around the super trend upper at $152.77.
Fundamental Analysis
Profitability and earnings: EBIT of $816.6 million and EBITDA of $1.0109 billion produce an EBIT margin of 30.87% and operating margin of 32.20%, both supporting current operating efficiency. The company reported adjusted EPS of $5.47 versus an estimate of $3.88, an EPS surprise of +$1.59 or +40.98% year-over-year on the surprise metric, reflecting stronger-than-expected quarterly results.
Growth and cash flow: Total revenue reached $2.6455 billion with revenue growth year-over-year of 15.89% while quarter-over-quarter revenue declined by 10.14%. Operating cash flow stood at $160.9 million with free cash flow of $134.3 million and a free cash flow yield of 0.69%, indicating positive cash generation but limited yield relative to enterprise value.
Balance sheet and leverage: Cash and short-term investments total $2.7588 billion with a current ratio of 2.50 and quick ratio of 1.79, supporting near-term liquidity. Total debt equals $6.5946 billion with debt-to-equity of 37.40% and debt-to-EBITDA of 6.52, reflecting leverage that remains serviceable given an interest coverage ratio near 11.25.
Valuation multiples: PE ratio at 23.68 and forward PE at 31.04 reflect elevated expectations; price-to-book at 1.10 sits below the industry peer mean of 5.38 and below the industry peer median of 6.29. Return on equity of 3.60% sits above the industry peer mean of 0.72% but slightly below the industry peer median of 4.03%. Gross margin at 77.13% and operating margin at 32.20% both sit above the industry peer mean and median for margins, supporting premium profitability metrics relative to many peers.
WMDST values the stock as over-valued. The valuation judgment reflects a combination of elevated headline multiples (forward PE above current PE), modest free cash flow yield, and reliance on near-term pipeline and commercial catalysts to justify further re-rating.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-30 |
| CASH FLOW | Begin Period Cash Flow | $ 2.6 B |
| Operating Cash Flow | $ 160.9 M | |
| Capital Expenditures | $ -26.60 M | |
| Change In Working Capital | $ -789.60 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 160.5 M | |
| End Period Cash Flow | $ 2.8 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.6 B | |
| Forward Revenue | $ 636.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 605.0 M | |
| Depreciation | $ 66.9 M | |
| Depreciation and Amortization | $ 194.3 M | |
| Research and Development | $ 399.0 M | |
| Total Operating Expenses | $ 1.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.0 B | |
| EBITDA | $ 1.0 B | |
| EBIT | $ 816.6 M | |
| Operating Income | $ 851.8 M | |
| Interest Income | $ 32.3 M | |
| Interest Expense | $ 72.6 M | |
| Net Interest Income | $ -40.30 M | |
| Income Before Tax | $ 744.0 M | |
| Tax Provision | $ 109.2 M | |
| Tax Rate | 14.677 % | |
| Net Income | $ 634.8 M | |
| Net Income From Continuing Operations | $ 634.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.88 | |
| EPS Actual | $ 5.47 | |
| EPS Difference | $ 1.59 | |
| EPS Surprise | 40.979 % | |
| Forward EPS | $ 4.17 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 28.3 B | |
| Intangible Assets | $ 16.0 B | |
| Net Tangible Assets | $ 1.7 B | |
| Total Current Assets | $ 8.0 B | |
| Cash and Short-Term Investments | $ 2.8 B | |
| Cash | $ 2.8 B | |
| Net Receivables | $ 2.1 B | |
| Inventory | $ 2.3 B | |
| Long-Term Investments | $ 637.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 408.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 3.2 B | |
| Net Debt | $ 3.5 B | |
| Total Debt | $ 6.6 B | |
| Total Liabilities | $ 10.7 B | |
| EQUITY | ||
| Total Equity | $ 17.6 B | |
| Retained Earnings | $ 20.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 120.29 | |
| Shares Outstanding | 146.600 M | |
| Revenue Per-Share | $ 18.05 | |
| VALUATION | Market Capitalization | $ 19.4 B |
| Enterprise Value | $ 23.2 B | |
| Enterprise Multiple | 22.964 | |
| Enterprise Multiple QoQ | -45.863 % | |
| Enterprise Multiple YoY | -31.163 % | |
| Enterprise Multiple IPRWA | high: 47.216 BIIB: 22.964 mean: 4.78 median: 1.12 low: -68.907 |
|
| EV/R | 8.775 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.607 | |
| Asset To Liability | 2.649 | |
| Debt To Capital | 0.272 | |
| Debt To Assets | 0.233 | |
| Debt To Assets QoQ | -1.444 % | |
| Debt To Assets YoY | 3133.056 % | |
| Debt To Assets IPRWA | high: 0.995 BIIB: 0.233 mean: 0.186 median: 0.062 low: 0.0 |
|
| Debt To Equity | 0.374 | |
| Debt To Equity QoQ | -4.103 % | |
| Debt To Equity YoY | 2977.942 % | |
| Debt To Equity IPRWA | high: 1.706 BIIB: 0.374 mean: 0.248 median: 0.059 low: -1.039 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.099 | |
| Price To Book QoQ | -4.286 % | |
| Price To Book YoY | -46.058 % | |
| Price To Book IPRWA | high: 16.592 median: 6.295 mean: 5.38 BIIB: 1.099 low: -10.064 |
|
| Price To Earnings (P/E) | 23.683 | |
| Price To Earnings QoQ | -46.25 % | |
| Price To Earnings YoY | -44.103 % | |
| Price To Earnings IPRWA | high: 44.732 BIIB: 23.683 mean: -12.52 median: -14.126 low: -73.374 |
|
| PE/G Ratio | 0.292 | |
| Price To Sales (P/S) | 7.325 | |
| Price To Sales QoQ | -8.652 % | |
| Price To Sales YoY | -44.222 % | |
| Price To Sales IPRWA | high: 517.227 mean: 57.254 median: 19.734 BIIB: 7.325 low: 0.25 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.038 | |
| Forward PE/G | 0.383 | |
| Forward P/S | 30.462 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 13.599 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.094 | |
| Asset Turnover Ratio QoQ | 8.282 % | |
| Asset Turnover Ratio YoY | 1.624 % | |
| Asset Turnover Ratio IPRWA | high: 0.388 median: 0.122 mean: 0.116 BIIB: 0.094 low: -0.001 |
|
| Receivables Turnover | 1.297 | |
| Receivables Turnover Ratio QoQ | 3.084 % | |
| Receivables Turnover Ratio YoY | 7.258 % | |
| Receivables Turnover Ratio IPRWA | high: 6.517 median: 1.459 mean: 1.411 BIIB: 1.297 low: 0.012 |
|
| Inventory Turnover | 0.266 | |
| Inventory Turnover Ratio QoQ | 0.075 % | |
| Inventory Turnover Ratio YoY | 22.374 % | |
| Inventory Turnover Ratio IPRWA | high: 2.946 mean: 0.613 median: 0.434 BIIB: 0.266 low: 0.006 |
|
| Days Sales Outstanding (DSO) | 70.373 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 342.13 | |
| Cash Conversion Cycle Days QoQ | -9.718 % | |
| Cash Conversion Cycle Days YoY | -21.485 % | |
| Cash Conversion Cycle Days IPRWA | high: 1258.184 BIIB: 342.13 mean: 199.175 median: 174.158 low: -1350.846 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.553 | |
| CapEx To Revenue | -0.01 | |
| CapEx To Depreciation | -0.398 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 23.9 B | |
| Net Invested Capital | $ 23.9 B | |
| Invested Capital | $ 23.9 B | |
| Net Tangible Assets | $ 1.7 B | |
| Net Working Capital | $ 4.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.867 | |
| Current Ratio | 2.503 | |
| Current Ratio QoQ | 73.847 % | |
| Current Ratio YoY | 9.429 % | |
| Current Ratio IPRWA | high: 25.128 mean: 3.945 median: 2.52 BIIB: 2.503 low: 0.021 |
|
| Quick Ratio | 1.788 | |
| Quick Ratio QoQ | 77.002 % | |
| Quick Ratio YoY | 20.772 % | |
| Quick Ratio IPRWA | high: 14.041 mean: 2.989 median: 2.158 BIIB: 1.788 low: 0.021 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.523 | |
| Cost Of Debt | 0.937 % | |
| Interest Coverage Ratio | 11.248 | |
| Interest Coverage Ratio QoQ | 81.809 % | |
| Interest Coverage Ratio YoY | -9.277 % | |
| Interest Coverage Ratio IPRWA | high: 940.414 mean: 45.012 BIIB: 11.248 median: 2.32 low: -1580.294 |
|
| Operating Cash Flow Ratio | 0.238 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 57.994 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.06 % | |
| Revenue Growth | 8.824 % | |
| Revenue Growth QoQ | -1014.404 % | |
| Revenue Growth YoY | 15.892 % | |
| Revenue Growth IPRWA | high: 269.352 % mean: 20.59 % median: 12.272 % BIIB: 8.824 % low: -259.856 % |
|
| Earnings Growth | 81.126 % | |
| Earnings Growth QoQ | -764.477 % | |
| Earnings Growth YoY | 84.928 % | |
| Earnings Growth IPRWA | high: 155.0 % BIIB: 81.126 % mean: 13.557 % median: 11.33 % low: -175.0 % |
|
| MARGINS | ||
| Gross Margin | 77.131 % | |
| Gross Margin QoQ | 4.071 % | |
| Gross Margin YoY | -0.922 % | |
| Gross Margin IPRWA | high: 100.0 % median: 80.103 % mean: 77.844 % BIIB: 77.131 % low: -77.751 % |
|
| EBIT Margin | 30.868 % | |
| EBIT Margin QoQ | 102.161 % | |
| EBIT Margin YoY | 0.114 % | |
| EBIT Margin IPRWA | high: 338.783 % BIIB: 30.868 % median: 23.755 % mean: -77.181 % low: -5123.44 % |
|
| Return On Sales (ROS) | 32.198 % | |
| Return On Sales QoQ | 110.872 % | |
| Return On Sales YoY | 4.427 % | |
| Return On Sales IPRWA | high: 89.247 % BIIB: 32.198 % median: 28.85 % mean: -81.092 % low: -5698.0 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 134.3 M | |
| Free Cash Flow Yield | 0.693 % | |
| Free Cash Flow Yield QoQ | -36.364 % | |
| Free Cash Flow Yield YoY | -61.543 % | |
| Free Cash Flow Yield IPRWA | high: 36.371 % BIIB: 0.693 % median: 0.516 % mean: -0.356 % low: -74.318 % |
|
| Free Cash Growth | -36.711 % | |
| Free Cash Growth QoQ | -47.14 % | |
| Free Cash Growth YoY | -205.171 % | |
| Free Cash Growth IPRWA | high: 157.51 % median: 15.936 % mean: 4.47 % BIIB: -36.711 % low: -183.577 % |
|
| Free Cash To Net Income | 0.212 | |
| Cash Flow Margin | 28.656 % | |
| Cash Flow To Earnings | 1.194 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.253 % | |
| Return On Assets QoQ | 162.587 % | |
| Return On Assets YoY | 3.018 % | |
| Return On Assets IPRWA | high: 36.544 % BIIB: 2.253 % median: 1.616 % mean: -1.455 % low: -68.545 % |
|
| Return On Capital Employed (ROCE) | 3.247 % | |
| Return On Equity (ROE) | 0.036 | |
| Return On Equity QoQ | 154.237 % | |
| Return On Equity YoY | -1.987 % | |
| Return On Equity IPRWA | high: 1.117 median: 0.04 BIIB: 0.036 mean: 0.007 low: -1.572 |
|
| DuPont ROE | 3.668 % | |
| Return On Invested Capital (ROIC) | 2.913 % | |
| Return On Invested Capital QoQ | 136.445 % | |
| Return On Invested Capital YoY | -107.876 % | |
| Return On Invested Capital IPRWA | high: 53.785 % median: 3.175 % BIIB: 2.913 % mean: 1.457 % low: -71.959 % |
|