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Biogen Inc.

Data period: Annual Quarterly Graham uses annual
NASDAQ · Healthcare
Biogen Inc.
BIIB · Drug Manufacturers - General
$201.82
▼ -1.13 (-0.56%)
Cached · 10 min
Overall Grade
D
Defensive
C
Enterprising
Profitability
B
Gross Profit Margin 71.6%
Operating Margin 17.6%
Net Income Margin 3.6%
Fin. Health
D
Years to Pay Off Debt 85.7 yrs
Working Capital vs Long-Term Debt -$3.9B
Working Capital $3.4B
Valuation
F
Margin of Safety 0.0%
Price-to-Book 1.58x
Cash Flow
C
Free Cash Flow $308M
CapEx % of Net Income 144.5%
Owner Earnings $474M
About Biogen Inc.
Biogen Inc. discovers, develops, manufactures, and delivers therapies in the United States, Europe, Germany, Asia, and internationally. The company provides TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, and TYSABRI for multiple sclerosis (MS); SPINRAZA for spinal muscular atrophy; SKYCLARYS to treat Friedreich's Ataxia; QALSODY for treating amyotrophic lateral sclerosis; FUMADERM to treat plaque psoriasis; BENEPALI, an etanercept biosimilar referencing ENBREL; IMRALDI, an adalimumab biosimilar referencing HUMIRA; FLIXABI, an infliximab biosimilar referencing REMICADE. It offers LEQEMBI for the treatment of Alzheimer's disease; ZURZUVAE for the treatment of postpartum depression; RITUXAN to treat non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, two forms of ANCA-associated vasculitis, and pemphigus vulgaris; RITUXAN HYCELA for non-Hodgkin's lymphoma and CLL; GAZYVA to treat CLL and follicular lymphoma; OCREVUS for relapsing MS and primary progressive MS; LUNSUMIO to treat relapsed or refractory follicular lymphoma; glofitamab for aRelapsed or refractory diffuse large B-cell lymphoma; and other anti-CD20 therapies. Biogen Inc. has collaboration and license agreements with Merz Therapeutics; Alkermes Pharma Ireland Limited; Denali Therapeutics Inc.; UCB; Eisai Co., Ltd.; Genentech, Inc.; Neurimmune SubOne AG; Ionis Pharmaceuticals, Inc.; Samsung Bioepis; and Sage Therapeutics, Inc., as well as collaborations with Stoke Therapeutics, Inc. for the development and commercialization of zorevunersen, a disease modifying medicine for the treatment of Dravet syndrome; Dayra Therapeutics, Inc. to develop oral macrocyclic peptides; Vanqua Bio, Inc. for developing Vanqua's preclinical oral C5aR1 antagonist compound; City Therapeutics, Inc. to develop select novel RNAi therapies; and ALTEOGEN Inc. to develop subcutaneous (SC) formulations of biologics utilizing ALT-B4. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $29.8B
Enterprise Value $37.1B
P/E (TTM) 35.91
Dividend Yield N/A
Exchange NASDAQ
Gross Profit 71.6%
Operating Margin 17.6%
Net Margin 3.6%
Sector Healthcare
Industry Drug Manufacturers - General
Employees 7500
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering Biogen Inc. at $201.82.

The business passes only 1 of 6 of Graham's defensive criteria — well below his required standard.

At $201.82, the stock trades at a 364% premium to its Graham Number of $43.52. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Gross Profit % 71.6% 78.3% N/A
Operating Margin % 17.6% 16.9% N/A
Net Income % 3.6% -2.1% N/A
Diluted EPS 0.66 -0.33 N/A
Balance Sheet Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Total Assets $32.1B $29.4B N/A
Total Debt $8.4B $6.6B N/A
Working Capital $3.4B $5.6B N/A
Years to Pay Debt 85.69 -134.50 N/A
Cash Flow Highlights
Metric Q2 2026 Q4 2025 Q4 2024
Free Cash Flow $308M $402M N/A
Owner Earnings $474M $262M N/A
CapEx % of Net Income 144.5% N/A N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $2.6B ▲ $2.7B +3.4%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 77.1% ▼ 71.6% -5.5pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 18.2% ▼ 17.6% -0.6pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 24.0% ▼ 3.6% -20.4pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$2.7B/qtr (≈$10.9B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.87x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$308M
vs Positive
Operating Cash Flow
$449M
Latest quarter · Buffett's cash reality check
ROIC
1.4%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.6x
Net Assets: $18.8B
⚠️ Net margin compressed 20.4pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry
No auto-detected peers for Drug Manufacturers - General. You can manually compare BIIB against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.19%
Low — management has little skin in the game
Return on Equity (ROE)
0.5%
Weak — poor returns on equity
Return on Assets (ROA)
0.3%
Poor — assets are not generating adequate returns
Debt Trend YoY
+27.3% YoY
Debt is growing — management is leveraging up
Leadership Team
Christopher Viehbacher
President, CEO & Director
Age 64
Pay: $5,277,129
5.412% of net income
Robin Kramer
Executive VP & CFO
Age 59
Pay: $1,632,803
1.675% of net income
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 10.81% 15,974,601
Primecap Management Company 9.99% 14,757,607
FMR, LLC 8.67% 12,807,541
Vanguard Capital Management LLC 6.45% 9,537,417
State Street Corporation 4.85% 7,167,922
Vanguard Portfolio Management LLC 4.42% 6,531,727
Geode Capital Management, LLC 2.94% 4,342,602
Wellington Management Group, LLP 2.00% 2,961,641
Risk Analysis
Beta (Market Risk)
0.16
Low volatility — more stable than the market
Short Interest
4.5% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.44x
Conservative balance sheet — low financial risk
Current Ratio
1.86x
Adequate liquidity
52-Week Price Range
Low: $127.00 Current: $201.82 High: $219.72
Currently at 81% of 52-week range

Biogen Inc. (BIIB) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $43.52. Margin of safety: 0%. Gross profit margin: 71.6%. Operating margin: 17.6%. Net margin: 3.6%. Market cap: $29.8B. Sector: Healthcare. Industry: Drug Manufacturers - General. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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