AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
AMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Biotechnology industry. AMG scores excellent on profitability, but there are some minor concerns on its financial health. AMG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AMG was profitable.
AMG had a positive operating cash flow in the past year.
Each year in the past 5 years AMG has been profitable.
In the past 5 years AMG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.45%, AMG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of AMG (69.59%) is better than 97.22% of its industry peers.
AMG has a Return On Invested Capital of 9.20%. This is amongst the best in the industry. AMG outperforms 84.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMG is in line with the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROIC | 9.2% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
1.3 Margins
With an excellent Profit Margin value of 12.24%, AMG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
AMG's Profit Margin has declined in the last couple of years.
AMG's Operating Margin of 21.71% is amongst the best of the industry. AMG outperforms 86.11% of its industry peers.
AMG's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 61.53%, AMG is doing good in the industry, outperforming 62.50% of the companies in the same industry.
AMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% |
OM growth 3Y-14.87%
OM growth 5Y-12.2%
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
AMG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AMG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMG has less shares outstanding
Compared to 1 year ago, AMG has an improved debt to assets ratio.
2.2 Solvency
AMG has an Altman-Z score of 1.50. This is a bad value and indicates that AMG is not financially healthy and even has some risk of bankruptcy.
AMG has a Altman-Z score of 1.50. This is in the better half of the industry: AMG outperforms 63.89% of its industry peers.
AMG has a debt to FCF ratio of 5.78. This is a neutral value as AMG would need 5.78 years to pay back of all of its debts.
The Debt to FCF ratio of AMG (5.78) is better than 80.56% of its industry peers.
AMG has a Debt/Equity ratio of 9.62. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AMG (9.62) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.01
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.26 indicates that AMG should not have too much problems paying its short term obligations.
The Current ratio of AMG (1.26) is worse than 68.06% of its industry peers.
AMG has a Quick Ratio of 1.26. This is a bad value and indicates that AMG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMG (0.95) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.27% over the past year.
Measured over the past 5 years, AMG shows a small growth in Earnings Per Share. The EPS has been growing by 5.97% on average per year.
AMG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.57%.
AMG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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
The Earnings Per Share is expected to grow by 4.52% on average over the next years.
The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y6.15%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
EPS Next 5Y4.52%
Revenue Next Year5.99%
Revenue Next 2Y4.06%
Revenue Next 3Y3.26%
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
The Price/Earnings ratio is 16.43, which indicates a correct valuation of AMG.
Based on the Price/Earnings ratio, AMG is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMG to the average of the S&P500 Index (29.35), we can say AMG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.49, AMG is valued correctly.
88.89% of the companies in the same industry are more expensive than AMG, based on the Price/Forward Earnings ratio.
AMG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 81.94% of the companies listed in the same industry.
AMG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMG is cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)2.75
EPS Next 2Y5.22%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, AMG has a reasonable but not impressive dividend return.
AMG's Dividend Yield is rather good when compared to the industry average which is at 3.73. AMG pays more dividend than 95.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, AMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
On average, the dividend of AMG grows each year by 9.41%, which is quite nice.
Dividend Growth(5Y)9.41%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AMG pays out 118.14% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AMG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.14%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
FRA:AMG (3/7/2025, 7:00:00 PM)
300.1
+7.6 (+2.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap161.21B
Analysts74.74
Price Target309.23 (3.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend8.3
Dividend Growth(5Y)9.41%
DP118.14%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.73%
Min EPS beat(2)2.49%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-2.66%
Max EPS beat(4)6.97%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)10
Avg EPS beat(12)2.41%
EPS beat(16)13
Avg EPS beat(16)2.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)0.9%
PT rev (3m)-2.92%
EPS NQ rev (1m)-7.99%
EPS NQ rev (3m)-7.92%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 15.49 | ||
| P/S | 5.24 | ||
| P/FCF | 16.84 | ||
| P/OCF | 15.23 | ||
| P/B | 29.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.37 |
EPS(TTM)18.26
EY6.08%
EPS(NY)19.38
Fwd EY6.46%
FCF(TTM)17.82
FCFY5.94%
OCF(TTM)19.7
OCFY6.56%
SpS57.31
BVpS10.08
TBVpS-69.37
PEG (NY)2.67
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROCE | 10.56% | ||
| ROIC | 9.2% | ||
| ROICexc | 11.14% | ||
| ROICexgc | 60.62% | ||
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% | ||
| FCFM | 31.1% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
ROICexc(3y)14.54%
ROICexc(5y)16.53%
ROICexgc(3y)69.08%
ROICexgc(5y)73.09%
ROCE(3y)13.81%
ROCE(5y)15.58%
ROICexcg growth 3Y-6.12%
ROICexcg growth 5Y-22.74%
ROICexc growth 3Y-16.97%
ROICexc growth 5Y-12.97%
OM growth 3Y-14.87%
OM growth 5Y-12.2%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 19.6% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 89.42% | ||
| Profit Quality | 254.13% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.5 |
F-Score6
WACC9.12%
ROIC/WACC1.01
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)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
EPS Next Y6.15%
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 Year5.99%
Revenue Next 2Y4.06%
Revenue Next 3Y3.26%
Revenue Next 5Y2.58%
EBIT growth 1Y-11.1%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year35.23%
EBIT Next 3Y8.19%
EBIT Next 5Y4.82%
FCF growth 1Y41.24%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y35.64%
OCF growth 3Y7.45%
OCF growth 5Y4.66%