BIIBBiogen
Is the business good?
The checks split: earnings fully cash-backed (1.9×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BIIB?
Biogen earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Drug Manufacturers - General median 24% · 12 months to Q1 2026
- Cash conversion
- 1.89×
Cash conversion · 1.75× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 34% |
| FY2021 | 26% |
| FY2022 | 35% |
| FY2023 | 13% |
| FY2024 | 20% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q1 2026
- 75%
- Operating margin12 months to Q1 2026
- 16%
- Net margin12 months to Q1 2026
- 14%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $9.94B
- Free cash flow, trailing twelve months
- $2.42B
- Net income, trailing twelve months
- $1.37B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, General
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