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 72 industry peers in the Biotechnology industry. While 1AMGN belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1AMGN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1AMGN had positive earnings in the past year.
1AMGN had a positive operating cash flow in the past year.
Each year in the past 5 years 1AMGN has been profitable.
1AMGN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1AMGN's Return On Assets of 4.65% is amongst the best of the industry. 1AMGN outperforms 85.92% of its industry peers.
1AMGN has a better Return On Equity (56.20%) than 95.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.70%, 1AMGN belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AMGN is in line with the industry average of 11.80%.
The last Return On Invested Capital (7.70%) for 1AMGN is well below the 3 year average (12.30%), which needs to be investigated, but indicates that 1AMGN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROIC | 7.7% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.3%
ROIC(5y)13.74%
1.3 Margins
1AMGN's Profit Margin of 13.00% is amongst the best of the industry. 1AMGN outperforms 85.92% of its industry peers.
In the last couple of years the Profit Margin of 1AMGN has declined.
1AMGN has a Operating Margin of 19.16%. This is amongst the best in the industry. 1AMGN outperforms 81.69% of its industry peers.
1AMGN's Operating Margin has declined in the last couple of years.
The Gross Margin of 1AMGN (60.48%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% |
OM growth 3Y-12.41%
OM growth 5Y-10.68%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
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.
1AMGN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1AMGN has less shares outstanding
Compared to 1 year ago, 1AMGN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that 1AMGN is in the distress zone and has some risk of bankruptcy.
1AMGN has a Altman-Z score (1.43) which is in line with its industry peers.
1AMGN has a debt to FCF ratio of 9.61. This is a negative value and a sign of low solvency as 1AMGN would need 9.61 years to pay back of all of its debts.
1AMGN has a Debt to FCF ratio of 9.61. This is in the better half of the industry: 1AMGN outperforms 77.46% of its industry peers.
1AMGN has a Debt/Equity ratio of 7.55. This is a high value indicating a heavy dependency on external financing.
1AMGN has a worse Debt to Equity ratio (7.55) than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.84
WACC9.14%
2.3 Liquidity
1AMGN has a Current Ratio of 1.32. 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 (1.32) is worse than 70.42% of its industry peers.
1AMGN has a Quick Ratio of 1.32. 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 has a Quick ratio of 0.96. This is in the lower half of the industry: 1AMGN underperforms 66.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
1AMGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.27%.
1AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
Looking at the last year, 1AMGN shows a quite strong growth in Revenue. The Revenue has grown by 18.57% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
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 4.52% on average per year.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y6.18%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
EPS Next 5Y4.52%
Revenue Next Year4.04%
Revenue Next 2Y2.79%
Revenue Next 3Y2.49%
Revenue Next 5Y2.58%
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.
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
1AMGN is valuated correctly with a Price/Earnings ratio of 15.84.
Based on the Price/Earnings ratio, 1AMGN is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1AMGN to the average of the S&P500 Index (29.35), we can say 1AMGN is valued slightly cheaper.
1AMGN is valuated correctly with a Price/Forward Earnings ratio of 14.92.
Based on the Price/Forward Earnings ratio, 1AMGN is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
77.46% 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 a bit cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.83 | ||
| EV/EBITDA | 17.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1AMGN may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)2.65
EPS Next 2Y5.22%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, 1AMGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.73, 1AMGN pays a better dividend. On top of this 1AMGN pays more dividend than 97.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
On average, the dividend of 1AMGN grows each year by 10.43%, which is quite nice.
Dividend Growth(5Y)10.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AMGN pays out 112.70% 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.
DP112.7%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
BIT:1AMGN (3/4/2025, 7:00:00 PM)
299.6
+24.1 (+8.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners80.93%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap160.89B
Analysts73.33
Price Target306.24 (2.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend8.52
Dividend Growth(5Y)10.43%
DP112.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-2.66%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)1.22%
Min EPS beat(4)-2.66%
Max EPS beat(4)6.97%
EPS beat(8)6
Avg EPS beat(8)2.15%
EPS beat(12)10
Avg EPS beat(12)2.6%
EPS beat(16)13
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-1.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)-1.09%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)2
Avg Revenue beat(16)-1.52%
PT rev (1m)-4.54%
PT rev (3m)1.97%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)-6%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.92 | ||
| P/S | 5.18 | ||
| P/FCF | 26.83 | ||
| P/OCF | 23.23 | ||
| P/B | 22.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.9 |
EPS(TTM)18.92
EY6.32%
EPS(NY)20.08
Fwd EY6.7%
FCF(TTM)11.17
FCFY3.73%
OCF(TTM)12.9
OCFY4.3%
SpS57.82
BVpS13.38
TBVpS-71.18
PEG (NY)2.56
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROCE | 8.83% | ||
| ROIC | 7.7% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 38.84% | ||
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% | ||
| FCFM | 19.31% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.3%
ROIC(5y)13.74%
ROICexc(3y)14.87%
ROICexc(5y)16.73%
ROICexgc(3y)70.88%
ROICexgc(5y)74.18%
ROCE(3y)14.12%
ROCE(5y)15.77%
ROICexcg growth 3Y-3.41%
ROICexcg growth 5Y-21.41%
ROICexc growth 3Y-14.56%
ROICexc growth 5Y-11.47%
OM growth 3Y-12.41%
OM growth 5Y-10.68%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 17.47% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.46% | ||
| Profit Quality | 148.53% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.43 |
F-Score5
WACC9.14%
ROIC/WACC0.84
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
EPS Next Y6.18%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
EPS Next 5Y4.52%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
Revenue Next Year4.04%
Revenue Next 2Y2.79%
Revenue Next 3Y2.49%
Revenue Next 5Y2.58%
EBIT growth 1Y-31.58%
EBIT growth 3Y-4.73%
EBIT growth 5Y-4.05%
EBIT Next Year35.23%
EBIT Next 3Y8.19%
EBIT Next 5Y4.82%
FCF growth 1Y-33.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.42%
OCF growth 3YN/A
OCF growth 5YN/A