Could Cash Machine Biogen Stock Be Your Next Buy?

Biogen (BIIB) could be a good pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market

What Is Happening With BIIB

BIIB may be down -6.6% so far this year but is now trading at P/S (Price-to-Sales) ratio that is at a meaningful discount to its 3-month and 2-year highs, and also belowits 3-year average.

The stock may not reflect it yet, but here is what’s going well for the company. Biogen’s recent launches, including Lecanemab, Skyclarys, and Zurzuvae, generated strong Q3 2025 revenue and are offsetting declines in its multiple sclerosis portfolio. Expect improved patient access for Lecanemab with an upcoming FDA decision on a subcutaneous induction dose, building on the monthly maintenance approval. The European Commission approved a high-dose Spinraza regimen, with FDA review pending by April 2026. With 10 Phase 3 programs, including lupus and Alzheimer’s (tau), data readouts begin in 2026, supported by significant cost savings from organizational redesign.

BIIB Has Good Fundamentals

• Good Cash Yield: Not many stocks offer free cash flow yield of 9.4%, but Biogen stock does
• Strong Margin: Last 12 month operating margin of 24.8%
• Growth: Last 12 revenue growth of 4.8% – low growth, but this selection is all about high yield and margin
• Valuation: BIIB stock currently trading at 35% below 2Y high, 12% below 1M high, and at a PS lower than 3Y average.

Below is a quick comparison of BIIB fundamentals with S&P medians.

*LTM: Last Twelve Months

But What Is The Risk Involved?

While BIIB stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. Biogen’s stock took a hit across every major market drop. It fell about 67% in the Dot-Com crash, 53% during the Global Financial Crisis, and nearly 55% in the recent inflation shock. Even the less severe corrections weren’t kind — 44% in 2018 and 34% at the Covid low. Solid fundamentals matter, but BIIB shows that no stock is immune when volatility spikes. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read BIIB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

For more details and our view, see Buy or Sell BIIB Stock.

Stocks Like BIIB

Not ready to act on BIIB? Consider these alternatives:

1. Salesforce (CRM)
2. Adobe (ADBE)
3. Global Payments (GPN)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. Dipped last month & meaningfully below 2Y high
3. Current P/S < last few year average
4. Strong operating margin with no instances of large margin collapse
5. High free cash flow yield

A portfolio of stocks with the criteria above would have performed has follows since 12/31/2016:

• Average 6-month and 12-month forward returns of 10.4% and 20.4% respectively
• Win rate (percentage of picks returning positive) of about 74% for 12-month period
• Strategy consistent across market cycles

Why Stock Pickers Win More With Multi Asset Portfolios

Individual stocks can soar or tank but multi asset exposure steadies the ride. A spread out portfolio captures upside while limiting the damage from any one market.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices