AMGEN INC (AMGN)
US0311621009 - Common Stock
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 565 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, but there are concerns on its financial health. AMGN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AMGN had positive earnings in the past year.
In the past year AMGN had a positive cash flow from operations.
In the past 5 years AMGN has always been profitable.
Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
AMGN's Return On Assets of 4.65% is amongst the best of the industry. AMGN outperforms 94.83% of its industry peers.
Looking at the Return On Equity, with a value of 56.20%, AMGN belongs to the top of the industry, outperforming 99.29% of the companies in the same industry.
AMGN has a Return On Invested Capital of 7.72%. This is amongst the best in the industry. AMGN outperforms 94.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is in line with the industry average of 15.31%.
The 3 year average ROIC (14.42%) for AMGN 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 AMGN (13.00%) is better than 95.72% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 19.16%. This is amongst the best in the industry. AMGN outperforms 95.90% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
AMGN's Gross Margin of 60.48% is amongst the best of the industry. AMGN outperforms 80.21% of its industry peers.
In the last couple of years the Gross Margin of AMGN 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
AMGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AMGN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMGN has less shares outstanding
AMGN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.40, AMGN is doing good in the industry, outperforming 69.70% of the companies in the same industry.
AMGN has a debt to FCF ratio of 9.61. This is a negative value and a sign of low solvency as AMGN would need 9.61 years to pay back of all of its debts.
AMGN has a Debt to FCF ratio of 9.61. This is amongst the best in the industry. AMGN outperforms 93.58% of its industry peers.
A Debt/Equity ratio of 7.55 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a worse Debt to Equity ratio (7.55) than 83.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.76
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.32 indicates that AMGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, AMGN is doing worse than 83.60% of the companies in the same industry.
AMGN has a Quick Ratio of 1.32. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.96, AMGN is not doing good in the industry: 87.34% 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
AMGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.60%.
AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
The Revenue has grown by 21.25% in the past year. This is a very strong growth!
AMGN 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, AMGN will show a small growth in Earnings Per Share. The EPS will grow by 3.77% on average per year.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y7.2%
EPS Next 2Y6.29%
EPS Next 3Y5.13%
EPS Next 5Y3.77%
Revenue Next Year17.87%
Revenue Next 2Y10.45%
Revenue Next 3Y7.4%
Revenue Next 5Y4.62%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AMGN is valuated correctly with a Price/Earnings ratio of 15.08.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 97.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. AMGN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.76, the valuation of AMGN can be described as correct.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 96.61% of the companies in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
95.72% of the companies in the same industry are more expensive than AMGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 95.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMGN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)2.85
EPS Next 2Y6.29%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.04%. 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 9.65. AMGN pays more dividend than 98.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
On average, the dividend of AMGN grows each year by 10.43%, which is quite nice.
AMGN has paid a dividend for at least 10 years, which is 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)10.43%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
112.70% of the earnings are spent on dividend by AMGN. This is not a sustainable payout ratio.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP112.7%
EPS Next 2Y6.29%
EPS Next 3Y5.13%
AMGEN INC
NASDAQ:AMGN (11/21/2024, 8:12:05 PM)
After market: 290.9 +1 (+0.34%)289.9
+2.03 (+0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap155.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 13.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.09
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.6%
EPS 3Y3.96%
EPS 5Y
EPS Q2Q%
EPS Next Y7.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y