342.22 USD
-9.1 (-2.59%)
339.98 USD
-2.24 (-0.65%)
Overall AMGN gets a fundamental rating of 5 out of 10. We evaluated AMGN against 525 industry peers in the Biotechnology industry. While AMGN belongs to the best of the industry regarding profitability, there are concerns on its financial health. AMGN has a correct valuation and a medium growth rate. AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AMGN had positive earnings in the past year.
- AMGN had a positive operating cash flow in the past year.
- Each year in the past 5 years AMGN has been profitable.
- Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.77%, AMGN belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 72.82%, AMGN belongs to the top of the industry, outperforming 99.05% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.39%, AMGN belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AMGN is significantly below the industry average of 18.07%.
- The last Return On Invested Capital (15.39%) for AMGN is above the 3 year average (13.04%), which is a sign of increasing profitability.
| 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 93.33% 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 97.33% of its industry peers.
- AMGN's Operating Margin has declined in the last couple of years.
- AMGN has a Gross Margin of 72.06%. This is amongst the best in the industry. AMGN outperforms 82.67% of its industry peers.
- AMGN's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMGN is still creating some value.
- Compared to 1 year ago, AMGN has more shares outstanding
- The number of shares outstanding for AMGN has been reduced compared to 5 years ago.
- AMGN has a better debt/assets ratio than last year.
2.2 Solvency
- AMGN has a debt to FCF ratio of 4.28. This is a neutral value as AMGN would need 4.28 years to pay back of all of its debts.
- AMGN's Debt to FCF ratio of 4.28 is amongst the best of the industry. AMGN outperforms 92.00% of its industry peers.
- A Debt/Equity ratio of 5.45 is on the high side and indicates that AMGN has dependencies on debt financing.
- The Debt to Equity ratio of AMGN (5.45) is worse than 80.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.78
WACC8.67%
2.3 Liquidity
- AMGN has a Current Ratio of 1.28. This is a normal value and indicates that AMGN is financially healthy and should not expect problems in meeting its short term obligations.
- AMGN's Current ratio of 1.28 is on the low side compared to the rest of the industry. AMGN is outperformed by 82.86% of its industry peers.
- 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 85.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.79% over the past year.
- Measured over the past 5 years, AMGN shows a small growth in Earnings Per Share. The EPS has been growing by 5.97% on average per year.
- The Revenue has grown by 10.56% in the past year. This is quite good.
- 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
- Based on estimates for the next years, AMGN will show a small growth in Earnings Per Share. The EPS will grow by 4.77% on average per year.
- Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y9.5%
EPS Next 2Y6.38%
EPS Next 3Y5.42%
EPS Next 5Y4.77%
Revenue Next Year9.41%
Revenue Next 2Y5.56%
Revenue Next 3Y4.64%
Revenue Next 5Y3.63%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AMGN is valuated correctly with a Price/Earnings ratio of 15.65.
- Compared to the rest of the industry, the Price/Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (28.82), we can say AMGN is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of AMGN.
- 95.81% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
- AMGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.43% of the companies in the same industry.
- 96.95% 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 | 14.45 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)2.62
EPS Next 2Y6.38%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
- AMGN has a Yearly Dividend Yield of 2.90%.
- AMGN's Dividend Yield is rather good when compared to the industry average which is at 1.08. AMGN pays more dividend than 98.86% of the companies in the same industry.
- AMGN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
- The dividend of AMGN is nicely growing with an annual growth rate of 9.41%!
- AMGN has been paying a dividend for at least 10 years, so it has a reliable track record.
- AMGN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y6.38%
EPS Next 3Y5.42%
AMGEN INC / AMGN FAQ
Can you provide the ChartMill fundamental rating for AMGEN INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMGN.
What is the valuation status of AMGEN INC (AMGN) stock?
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.
How financially healthy is AMGEN INC?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.
What is the earnings growth outlook for AMGEN INC?
The Earnings per Share (EPS) of AMGEN INC (AMGN) is expected to grow by 9.5% in the next year.