AMGEN INC (1AMGN.MI) Stock Fundamental Analysis
BIT:1AMGN - Euronext Milan - US0311621009 - Common Stock - Currency: EUR
1AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Biotechnology industry. While 1AMGN has a great profitability rating, there are quite some concerns on its financial health. 1AMGN has a decent growth rate and is not valued too expensively.
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.
In the past 5 years 1AMGN has always been profitable.
1AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.64%, 1AMGN belongs to the best of the industry, outperforming 84.72% of the companies in the same industry.
The Return On Equity of 1AMGN (95.59%) is better than 98.61% of its industry peers.
1AMGN has a Return On Invested Capital of 11.30%. This is amongst the best in the industry. 1AMGN outperforms 87.50% of its industry peers.
1AMGN had an Average Return On Invested Capital over the past 3 years of 13.04%. This is in line with the industry average of 12.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROIC | 11.3% |
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 17.39%, 1AMGN belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AMGN has declined.
1AMGN has a Operating Margin of 25.22%. This is amongst the best in the industry. 1AMGN outperforms 86.11% of its industry peers.
In the last couple of years the Operating Margin of 1AMGN has declined.
1AMGN has a better Gross Margin (64.07%) than 61.11% of its industry peers.
1AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% |
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.
The number of shares outstanding for 1AMGN has been increased compared to 1 year ago.
The number of shares outstanding for 1AMGN has been reduced compared to 5 years ago.
1AMGN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that 1AMGN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1AMGN (1.45) is comparable to the rest of the industry.
1AMGN has a debt to FCF ratio of 5.26. This is a neutral value as 1AMGN would need 5.26 years to pay back of all of its debts.
1AMGN has a Debt to FCF ratio of 5.26. This is amongst the best in the industry. 1AMGN outperforms 80.56% of its industry peers.
1AMGN has a Debt/Equity ratio of 8.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 8.70, 1AMGN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.91
WACC12.42%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1AMGN should not have too much problems paying its short term obligations.
1AMGN has a Current ratio of 1.17. This is in the lower half of the industry: 1AMGN underperforms 68.06% of its industry peers.
1AMGN has a Quick Ratio of 1.17. This is a bad value and indicates that 1AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
1AMGN's Quick ratio of 0.88 is on the low side compared to the rest of the industry. 1AMGN is outperformed by 73.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.43% over the past year.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
Looking at the last year, 1AMGN shows a quite strong growth in Revenue. The Revenue has grown by 15.56% in the last year.
Measured over the past years, 1AMGN shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
EPS 1Y (TTM)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
3.2 Future
Based on estimates for the next years, 1AMGN will show a small growth in Earnings Per Share. The EPS will grow by 4.13% on average per year.
The Revenue is expected to grow by 2.73% on average over the next years.
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.82%
Revenue Next 5Y2.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.97, the valuation of 1AMGN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 91.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1AMGN to the average of the S&P500 Index (27.29), we can say 1AMGN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.24, 1AMGN is valued correctly.
91.67% 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 21.74. 1AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 83.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.29 | ||
| EV/EBITDA | 14.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AMGN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1AMGN may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)2.34
EPS Next 2Y5.12%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
1AMGN has a Yearly Dividend Yield of 3.20%.
Compared to an average industry Dividend Yield of 14.28, 1AMGN pays a better dividend. On top of this 1AMGN pays more dividend than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 1AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
On average, the dividend of 1AMGN grows each year by 9.41%, which is quite nice.
Dividend Growth(5Y)9.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AMGN pays out 82.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.64%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
BIT:1AMGN (6/2/2025, 7:00:00 PM)
251.95
+12.1 (+5.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap135.48B
Analysts72.82
Price Target280.17 (11.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend7.83
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.11%
Min EPS beat(2)2.49%
Max EPS beat(2)11.73%
EPS beat(4)3
Avg EPS beat(4)4.63%
Min EPS beat(4)-2.66%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.24%
EPS beat(16)14
Avg EPS beat(16)3.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)-5.1%
PT rev (3m)-8.51%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.24 | ||
| P/S | 4.57 | ||
| P/FCF | 14.29 | ||
| P/OCF | 12.79 | ||
| P/B | 25.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.42 |
EPS(TTM)18.03
EY7.16%
EPS(NY)19.03
Fwd EY7.55%
FCF(TTM)17.63
FCFY7%
OCF(TTM)19.7
OCFY7.82%
SpS55.13
BVpS10.03
TBVpS-61.65
PEG (NY)1.95
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROCE | 12.97% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 56.9% | ||
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% | ||
| FCFM | 31.98% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)13.04%
ROIC(5y)14.18%
ROICexc(3y)15.77%
ROICexc(5y)17.27%
ROICexgc(3y)75.76%
ROICexgc(5y)77.1%
ROCE(3y)14.97%
ROCE(5y)16.28%
ROICexcg growth 3Y3.26%
ROICexcg growth 5Y-18.2%
ROICexc growth 3Y-8.67%
ROICexc growth 5Y-7.85%
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%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 22.89% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | 183.97% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.45 |
F-Score6
WACC12.42%
ROIC/WACC0.91
Cap/Depr(3y)24.77%
Cap/Depr(5y)23.42%
Cap/Sales(3y)3.59%
Cap/Sales(5y)3.31%
Profit Quality(3y)165.92%
Profit Quality(5y)155.23%
High Growth Momentum
Growth
EPS 1Y (TTM)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.13%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.82%
Revenue Next 5Y2.73%
EBIT growth 1Y22.01%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.48%
EBIT Next 3Y10.41%
EBIT Next 5Y5.07%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%