AMGEN INC (1AMGN.MI) Stock Fundamental Analysis
BIT:1AMGN - Borsa Italiana Milan - US0311621009 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1AMGN. 1AMGN was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years 1AMGN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1AMGN (4.65%) is better than 90.63% of its industry peers.
Looking at the Return On Equity, with a value of 56.20%, 1AMGN belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.72%, 1AMGN belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AMGN is above the industry average of 10.31%.
The last Return On Invested Capital (7.72%) for 1AMGN is well below the 3 year average (14.42%), 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 | 7.72% |
ROA(3y)8.87%
ROA(5y)10.26%
ROE(3y)124.9%
ROE(5y)106.6%
ROIC(3y)14.42%
ROIC(5y)15.39%
1.3 Margins
The Profit Margin of 1AMGN (13.00%) is better than 90.63% of its industry peers.
1AMGN's Profit Margin has declined in the last couple of years.
1AMGN has a better Operating Margin (19.16%) than 90.63% 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 60.48%, 1AMGN is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
1AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% |
OM growth 3Y-6.95%
OM growth 5Y-8.35%
PM growth 3Y-5.87%
PM growth 5Y-7.58%
GM growth 3Y-2.54%
GM growth 5Y-3.25%
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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that 1AMGN is in the distress zone and has some risk of bankruptcy.
1AMGN has a Altman-Z score of 1.38. This is comparable to the rest of the industry: 1AMGN outperforms 57.81% of 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.
The Debt to FCF ratio of 1AMGN (9.61) is better than 84.38% 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.
The Debt to Equity ratio of 1AMGN (7.55) is worse than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.74
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.32 indicates that 1AMGN should not have too much problems paying its short term obligations.
1AMGN has a Current ratio of 1.32. This is in the lower half of the industry: 1AMGN underperforms 68.75% 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.
The Quick ratio of 1AMGN (0.96) is worse than 67.19% 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 6.60%.
1AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
1AMGN shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.25%.
1AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.49% yearly.
EPS 1Y (TTM)6.6%
EPS 3Y3.96%
EPS 5Y5.29%
EPS Q2Q%12.5%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%23.18%
3.2 Future
The Earnings Per Share is expected to grow by 4.38% on average over the next years.
1AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.91% yearly.
EPS Next Y3.59%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
EPS Next 5Y4.38%
Revenue Next Year17.85%
Revenue Next 2Y10.41%
Revenue Next 3Y7.4%
Revenue Next 5Y4.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.81, the valuation of 1AMGN can be described as correct.
Based on the Price/Earnings ratio, 1AMGN is valued cheaper than 90.63% of the companies in the same industry.
1AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
With a Price/Forward Earnings ratio of 13.54, 1AMGN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 89.06% of the companies listed in the same industry.
1AMGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than 1AMGN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 85.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.36 | ||
| EV/EBITDA | 17.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1AMGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.13
PEG (5Y)2.8
EPS Next 2Y6.19%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
1AMGN has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.52, 1AMGN pays a better dividend. On top of this 1AMGN pays more dividend than 98.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1AMGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of 1AMGN is nicely growing with an annual growth rate of 10.43%!
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 2Y6.19%
EPS Next 3Y5.11%
AMGEN INC
BIT:1AMGN (1/31/2025, 7:00:00 PM)
275.5
+20.9 (+8.21%)
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 Cap148.09B
Analysts73.85
Price Target320.81 (16.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)0.02%
PT rev (3m)6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)-3.37%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.54 | ||
| P/S | 4.7 | ||
| P/FCF | 24.36 | ||
| P/OCF | 21.09 | ||
| P/B | 20.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.31 |
EPS(TTM)18.6
EY6.75%
EPS(NY)20.35
Fwd EY7.39%
FCF(TTM)11.31
FCFY4.11%
OCF(TTM)13.06
OCFY4.74%
SpS58.56
BVpS13.55
TBVpS-72.09
PEG (NY)4.13
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROCE | 8.83% | ||
| ROIC | 7.72% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 38.94% | ||
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% | ||
| FCFM | 19.31% |
ROA(3y)8.87%
ROA(5y)10.26%
ROE(3y)124.9%
ROE(5y)106.6%
ROIC(3y)14.42%
ROIC(5y)15.39%
ROICexc(3y)17.36%
ROICexc(5y)18.82%
ROICexgc(3y)73.48%
ROICexgc(5y)105.3%
ROCE(3y)16.51%
ROCE(5y)17.62%
ROICexcg growth 3Y-20.32%
ROICexcg growth 5Y-41.46%
ROICexc growth 3Y-18.8%
ROICexc growth 5Y-23.19%
OM growth 3Y-6.95%
OM growth 5Y-8.35%
PM growth 3Y-5.87%
PM growth 5Y-7.58%
GM growth 3Y-2.54%
GM growth 5Y-3.25%
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 | 1.38 |
F-Score5
WACC10.39%
ROIC/WACC0.74
Cap/Depr(3y)26.87%
Cap/Depr(5y)25.1%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3.18%
Profit Quality(3y)128.62%
Profit Quality(5y)126.16%
High Growth Momentum
Growth
EPS 1Y (TTM)6.6%
EPS 3Y3.96%
EPS 5Y5.29%
EPS Q2Q%12.5%
EPS Next Y3.59%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
EPS Next 5Y4.38%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%23.18%
Revenue Next Year17.85%
Revenue Next 2Y10.41%
Revenue Next 3Y7.4%
Revenue Next 5Y4.91%
EBIT growth 1Y-31.58%
EBIT growth 3Y-3.69%
EBIT growth 5Y-5.15%
EBIT Next Year47.48%
EBIT Next 3Y13.94%
EBIT Next 5Y8.48%
FCF growth 1Y-30.17%
FCF growth 3Y-9.38%
FCF growth 5Y-6.96%
OCF growth 1Y-26.55%
OCF growth 3Y-6.9%
OCF growth 5Y-5.59%