AMGEN INC (1AMGN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AMGN - US0311621009 - Common Stock
292.9 EUR
+14.45 (+5.19%)
1AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Biotechnology industry. 1AMGN has an excellent profitability rating, but there are concerns on its financial health. 1AMGN is not valued too expensively and it also shows a decent growth rate. 1AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year 1AMGN was profitable.
- In the past year 1AMGN had a positive cash flow from operations.
- Each year in the past 5 years 1AMGN has been profitable.
- In the past 5 years 1AMGN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1AMGN (7.77%) is better than 85.23% of its industry peers.
- The Return On Equity of 1AMGN (72.82%) is better than 100.00% of its industry peers.
- 1AMGN has a better Return On Invested Capital (15.39%) than 92.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1AMGN is in line with the industry average of 11.71%.
- The 3 year average ROIC (13.04%) for 1AMGN is below the current ROIC(15.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 72.82% | ||
| ROIC | 15.39% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)13.04%
ROIC(5y)14.18%
1.3 Margins
- Looking at the Profit Margin, with a value of 19.47%, 1AMGN belongs to the top of the industry, outperforming 85.23% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1AMGN has declined.
- 1AMGN has a better Operating Margin (33.57%) than 90.91% of its industry peers.
- 1AMGN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 72.06%, 1AMGN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- 1AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.57% | ||
| PM (TTM) | 19.47% | ||
| GM | 72.06% |
OM growth 3Y-6.36%
OM growth 5Y-7.03%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-2.94%
GM growth 5Y-3.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AMGN is still creating some value.
- Compared to 1 year ago, 1AMGN has more shares outstanding
- Compared to 5 years ago, 1AMGN has less shares outstanding
- 1AMGN has a better debt/assets ratio than last year.
2.2 Solvency
- 1AMGN has a debt to FCF ratio of 4.28. This is a neutral value as 1AMGN would need 4.28 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.28, 1AMGN is doing good in the industry, outperforming 79.55% of the companies in the same industry.
- A Debt/Equity ratio of 5.45 is on the high side and indicates that 1AMGN has dependencies on debt financing.
- 1AMGN has a worse Debt to Equity ratio (5.45) than 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.78
WACC8.67%
2.3 Liquidity
- 1AMGN has a Current Ratio of 1.28. This is a normal value and indicates that 1AMGN is financially healthy and should not expect problems in meeting its short term obligations.
- 1AMGN has a worse Current ratio (1.28) than 65.91% of its industry peers.
- A Quick Ratio of 0.99 indicates that 1AMGN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.99, 1AMGN is doing worse than 64.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.79% over the past year.
- 1AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
- The Revenue has grown by 10.56% in the past year. This is quite good.
- 1AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
EPS 1Y (TTM)13.79%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%1.08%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
3.2 Future
- The Earnings Per Share is expected to grow by 4.77% on average over the next years.
- Based on estimates for the next years, 1AMGN will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y9.5%
EPS Next 2Y6.38%
EPS Next 3Y5.42%
EPS Next 5Y4.77%
Revenue Next Year9.41%
Revenue Next 2Y5.56%
Revenue Next 3Y4.64%
Revenue Next 5Y3.63%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1AMGN is valuated correctly with a Price/Earnings ratio of 15.72.
- Compared to the rest of the industry, the Price/Earnings ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 92.05% of the companies listed in the same industry.
- 1AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 15.33, which indicates a correct valuation of 1AMGN.
- 93.18% of the companies in the same industry are more expensive than 1AMGN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. 1AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
- 84.09% of the companies in the same industry are more expensive than 1AMGN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 1AMGN is valued cheaply inside the industry as 92.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1AMGN may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)2.63
EPS Next 2Y6.38%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
- 1AMGN has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
- 1AMGN's Dividend Yield is rather good when compared to the industry average which is at 0.70. 1AMGN pays more dividend than 95.45% of the companies in the same industry.
- 1AMGN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
- The dividend of 1AMGN is nicely growing with an annual growth rate of 9.41%!
Dividend Growth(5Y)9.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 17.20% of the earnings are spent on dividend by 1AMGN. This is a low number and sustainable payout ratio.
- The dividend of 1AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.38%
EPS Next 3Y5.42%
AMGEN INC / 1AMGN.MI FAQ
What is the ChartMill fundamental rating of AMGEN INC (1AMGN.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1AMGN.MI.
What is the valuation status of AMGEN INC (1AMGN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to AMGEN INC (1AMGN.MI). This can be considered as Fairly Valued.
How profitable is AMGEN INC (1AMGN.MI) stock?
AMGEN INC (1AMGN.MI) has a profitability rating of 7 / 10.
What is the valuation of AMGEN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMGEN INC (1AMGN.MI) is 15.72 and the Price/Book (PB) ratio is 19.25.
Is the dividend of AMGEN INC sustainable?
The dividend rating of AMGEN INC (1AMGN.MI) is 7 / 10 and the dividend payout ratio is 17.2%.