AMGEN INC (1AMGN.MI) Stock Fundamental Analysis
BIT:1AMGN - Euronext Milan - US0311621009 - Common Stock - Currency: EUR
Overall 1AMGN gets a fundamental rating of 5 out of 10. We evaluated 1AMGN against 65 industry peers in the Biotechnology industry. While 1AMGN has a great profitability rating, there are quite some concerns on its financial health. 1AMGN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1AMGN was profitable.
1AMGN had a positive operating cash flow in the past year.
Each year in the past 5 years 1AMGN has been profitable.
Each year in the past 5 years 1AMGN had a positive operating cash flow.
1.2 Ratios
1AMGN has a Return On Assets of 6.64%. This is amongst the best in the industry. 1AMGN outperforms 84.72% of its industry peers.
With an excellent Return On Equity value of 95.59%, 1AMGN belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
1AMGN has a better Return On Invested Capital (11.30%) than 87.50% 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 12.12%.
| 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
With an excellent Profit Margin value of 17.39%, 1AMGN belongs to the best 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.
In the last couple of years the Gross Margin of 1AMGN has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AMGN is 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
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.
1AMGN has a Altman-Z score (1.45) which is in line with its industry peers.
The Debt to FCF ratio of 1AMGN is 5.26, which is a neutral value as it means it would take 1AMGN, 5.26 years of fcf income to pay off 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.
1AMGN's Debt to Equity ratio of 8.70 is on the low side compared to the rest of the industry. 1AMGN is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.91
WACC12.42%
2.3 Liquidity
1AMGN has a Current Ratio of 1.17. This is a normal value and indicates that 1AMGN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1AMGN (1.17) is worse than 68.06% of its industry peers.
A Quick Ratio of 0.88 indicates that 1AMGN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, 1AMGN is doing worse than 73.61% of the companies in the same industry.
| 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.
The Revenue has grown by 15.56% 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)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
The Earnings Per Share is expected to grow by 4.13% 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 2.73% on average per year.
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
The Price/Earnings ratio is 13.97, which indicates a correct valuation of 1AMGN.
Based on the Price/Earnings ratio, 1AMGN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
1AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.24, the valuation of 1AMGN can be described as correct.
1AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1AMGN is cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. 1AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
1AMGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1AMGN is cheaper than 83.33% of the companies in the same industry.
86.11% of the companies in the same industry are more expensive than 1AMGN, based on the Price/Free Cash Flow ratio.
| 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.
1AMGN has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 3.20%, 1AMGN has a reasonable but not impressive dividend return.
1AMGN's Dividend Yield is rather good when compared to the industry average which is at 12.03. 1AMGN pays more dividend than 94.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 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
82.64% of the earnings are spent on dividend by 1AMGN. This is not a sustainable payout ratio.
1AMGN's earnings are growing slower than its dividend. 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%