328.69 USD
-0.94 (-0.29%)
328.5 USD
-0.19 (-0.06%)
AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 530 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some concerns on its financial health. AMGN has a correct valuation and a medium growth rate. Finally AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AMGN was profitable.
AMGN had a positive operating cash flow in the past year.
In the past 5 years AMGN has always been profitable.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AMGN (7.77%) is better than 92.83% of its industry peers.
The Return On Equity of AMGN (72.82%) is better than 99.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.39%, AMGN belongs to the top of the industry, outperforming 96.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is significantly below the industry average of 18.22%.
The 3 year average ROIC (13.04%) for AMGN is below the current ROIC(15.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 72.82% | ||
| ROIC | 15.39% |
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 19.47%, AMGN belongs to the best of the industry, outperforming 93.21% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 33.57%. This is amongst the best in the industry. AMGN outperforms 97.17% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
Looking at the Gross Margin, with a value of 72.06%, AMGN belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.57% | ||
| PM (TTM) | 19.47% | ||
| GM | 72.06% |
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) well above the Cost of Capital (WACC), AMGN is creating value.
Compared to 1 year ago, AMGN has more shares outstanding
Compared to 5 years ago, AMGN has less shares outstanding
AMGN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AMGN is 4.28, which is a neutral value as it means it would take AMGN, 4.28 years of fcf income to pay off all of its debts.
AMGN has a better Debt to FCF ratio (4.28) than 92.26% of its industry peers.
AMGN has a Debt/Equity ratio of 5.45. This is a high value indicating a heavy dependency on external financing.
AMGN has a Debt to Equity ratio of 5.45. This is amonst the worse of the industry: AMGN underperforms 82.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.28 indicates that AMGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.28, AMGN is not doing good in the industry: 84.34% of the companies in the same industry are doing better.
AMGN has a Quick Ratio of 1.28. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.99, AMGN is doing worse than 87.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.79%, which is quite good.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 10.56% in the last year.
Measured over the past years, AMGN shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
EPS 1Y (TTM)13.79%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%1.08%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
3.2 Future
The Earnings Per Share is expected to grow by 4.48% on average over the next years.
The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y9.46%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
EPS Next 5Y4.48%
Revenue Next Year9.43%
Revenue Next 2Y5.53%
Revenue Next 3Y4.57%
Revenue Next 5Y3.55%
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 15.03, which indicates a correct valuation of AMGN.
95.66% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.77. AMGN is valued slightly cheaper when compared to this.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 14.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.04% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 95.66% of the companies listed in the same industry.
97.36% of the companies in the same industry are more expensive than AMGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
AMGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)2.52
EPS Next 2Y6.31%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
AMGN's Dividend Yield is rather good when compared to the industry average which is at 1.05. AMGN pays more dividend than 99.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, AMGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
AMGN has been paying a dividend for at least 10 years, so it has a reliable track record.
AMGN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.41%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
AMGN pays out 17.20% of its income as dividend. This is a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
328.69
-0.94 (-0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.83%
Inst Owner Change-3.48%
Ins Owners0.06%
Ins Owner Change-0.77%
Market Cap176.99B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72.2
Price Target334.67 (1.82%)
Short Float %2.63%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP17.2%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.96%
Min EPS beat(2)10.28%
Max EPS beat(2)11.64%
EPS beat(4)4
Avg EPS beat(4)9.04%
Min EPS beat(4)2.49%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)5.13%
EPS beat(12)10
Avg EPS beat(12)4.44%
EPS beat(16)14
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)0.68%
Max Revenue beat(2)4.49%
Revenue beat(4)3
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)4.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-0.48%
Revenue beat(16)5
Avg Revenue beat(16)-0.54%
PT rev (1m)2.23%
PT rev (3m)4.66%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)1.14%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.67 | ||
| P/S | 4.92 | ||
| P/FCF | 13.88 | ||
| P/OCF | 13.48 | ||
| P/B | 18.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.6 |
EPS(TTM)21.87
EY6.65%
EPS(NY)22.4
Fwd EY6.81%
FCF(TTM)23.69
FCFY7.21%
OCF(TTM)24.38
OCFY7.42%
SpS66.8
BVpS17.86
TBVpS-59.79
PEG (NY)1.59
PEG (5Y)2.52
Graham Number93.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 72.82% | ||
| ROCE | 17.67% | ||
| ROIC | 15.39% | ||
| ROICexc | 17.86% | ||
| ROICexgc | 61.56% | ||
| OM | 33.57% | ||
| PM (TTM) | 19.47% | ||
| GM | 72.06% | ||
| FCFM | 35.46% |
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%
ROICexgc growth 3Y3.26%
ROICexgc 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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.3% | ||
| Profit Quality | 182.08% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | N/A |
F-Score7
WACC8.53%
ROIC/WACC1.8
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)13.79%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%1.08%
EPS Next Y9.46%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
EPS Next 5Y4.48%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
Revenue Next Year9.43%
Revenue Next 2Y5.53%
Revenue Next 3Y4.57%
Revenue Next 5Y3.55%
EBIT growth 1Y93.73%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year42.71%
EBIT Next 3Y11.36%
EBIT Next 5Y7.32%
FCF growth 1Y36%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y24.04%
OCF growth 3Y7.45%
OCF growth 5Y4.66%
AMGEN INC / AMGN FAQ
Can you provide the ChartMill fundamental rating for AMGEN INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMGN.
Can you provide the valuation status for AMGEN INC?
ChartMill assigns a valuation rating of 6 / 10 to AMGEN INC (AMGN). This can be considered as Fairly Valued.
What is the profitability of AMGN stock?
AMGEN INC (AMGN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMGEN INC (AMGN) stock?
The Price/Earnings (PE) ratio for AMGEN INC (AMGN) is 15.03 and the Price/Book (PB) ratio is 18.4.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.