AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
Taking everything into account, AMG scores 5 out of 10 in our fundamental rating. AMG was compared to 72 industry peers in the Biotechnology industry. AMG has an excellent profitability rating, but there are concerns on its financial health. AMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AMG had positive earnings in the past year.
In the past year AMG had a positive cash flow from operations.
In the past 5 years AMG has always been profitable.
Each year in the past 5 years AMG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMG (4.65%) is better than 89.06% of its industry peers.
AMG has a better Return On Equity (56.20%) than 96.88% of its industry peers.
AMG has a Return On Invested Capital of 7.72%. This is amongst the best in the industry. AMG outperforms 87.50% of its industry peers.
AMG had an Average Return On Invested Capital over the past 3 years of 14.42%. This is above the industry average of 10.31%.
The 3 year average ROIC (14.42%) for AMG is well above the current ROIC(7.72%). The reason for the recent decline needs to be investigated.
| 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 AMG (13.00%) is better than 89.06% of its industry peers.
AMG's Profit Margin has declined in the last couple of years.
AMG has a better Operating Margin (19.16%) than 89.06% of its industry peers.
AMG's Operating Margin has declined in the last couple of years.
AMG has a Gross Margin of 60.48%. This is comparable to the rest of the industry: AMG outperforms 59.38% of its industry peers.
In the last couple of years the Gross Margin of AMG has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMG is still creating some value.
The number of shares outstanding for AMG has been increased compared to 1 year ago.
AMG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AMG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that AMG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AMG (1.39) is comparable to the rest of the industry.
The Debt to FCF ratio of AMG is 9.61, which is on the high side as it means it would take AMG, 9.61 years of fcf income to pay off all of its debts.
AMG's Debt to FCF ratio of 9.61 is amongst the best of the industry. AMG outperforms 82.81% of its industry peers.
AMG has a Debt/Equity ratio of 7.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.55, AMG is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.74
WACC10.4%
2.3 Liquidity
AMG has a Current Ratio of 1.32. This is a normal value and indicates that AMG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AMG (1.32) is worse than 70.31% of its industry peers.
A Quick Ratio of 0.96 indicates that AMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, AMG is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.60% 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 5.29% on average per year.
Looking at the last year, AMG shows a very strong growth in Revenue. The Revenue has grown by 21.25%.
AMG 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
Based on estimates for the next years, AMG will show a small growth in Earnings Per Share. The EPS will grow by 4.32% on average per year.
The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y7.12%
EPS Next 2Y6.62%
EPS Next 3Y5.1%
EPS Next 5Y4.32%
Revenue Next Year17.88%
Revenue Next 2Y10.56%
Revenue Next 3Y7.51%
Revenue Next 5Y5.01%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AMG is valuated correctly with a Price/Earnings ratio of 14.96.
Based on the Price/Earnings ratio, AMG is valued cheaper than 89.06% of the companies in the same industry.
AMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 13.56, which indicates a correct valuation of AMG.
87.50% of the companies in the same industry are more expensive than AMG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. AMG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMG is valued a bit cheaper than 79.69% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 84.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.6 | ||
| EV/EBITDA | 17.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AMG may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)2.83
EPS Next 2Y6.62%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, 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 4.52. AMG pays more dividend than 96.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, AMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
On average, the dividend of AMG grows each year by 10.43%, which is quite nice.
Dividend Growth(5Y)10.43%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AMG pays out 112.70% 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.
DP112.7%
EPS Next 2Y6.62%
EPS Next 3Y5.1%
AMGEN INC
FRA:AMG (2/4/2025, 7:00:00 PM)
278.25
-1.95 (-0.7%)
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 Cap149.57B
Analysts73.33
Price Target306.46 (10.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend8.52
Dividend Growth(5Y)10.43%
DP112.7%
Div Incr Years2
Div Non Decr Years2
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)-4.49%
PT rev (3m)-2.4%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-6.34%
EPS NY rev (1m)3.41%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.56 | ||
| P/S | 4.75 | ||
| P/FCF | 24.6 | ||
| P/OCF | 21.3 | ||
| P/B | 20.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.44 |
EPS(TTM)18.6
EY6.68%
EPS(NY)20.52
Fwd EY7.37%
FCF(TTM)11.31
FCFY4.06%
OCF(TTM)13.06
OCFY4.69%
SpS58.56
BVpS13.55
TBVpS-72.09
PEG (NY)2.1
PEG (5Y)2.83
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 | 1.39 |
F-Score5
WACC10.4%
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 Y7.12%
EPS Next 2Y6.62%
EPS Next 3Y5.1%
EPS Next 5Y4.32%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%23.18%
Revenue Next Year17.88%
Revenue Next 2Y10.56%
Revenue Next 3Y7.51%
Revenue Next 5Y5.01%
EBIT growth 1Y-31.58%
EBIT growth 3Y-3.69%
EBIT growth 5Y-5.15%
EBIT Next Year50.28%
EBIT Next 3Y14.19%
EBIT Next 5Y7.15%
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%