344.75 USD
-2.32 (-0.67%)
344.63 USD
-0.12 (-0.03%)
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 525 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, but there are concerns on its financial health. AMGN is not valued too expensively and it also shows a decent growth rate. 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
- AMGN has a Return On Assets of 7.77%. This is amongst the best in the industry. AMGN outperforms 93.14% of its industry peers.
- 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.
- With an excellent Return On Invested Capital value of 15.39%, AMGN belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
- AMGN had an Average Return On Invested Capital over the past 3 years of 13.04%. This 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's Operating Margin of 33.57% is amongst the best of the industry. AMGN outperforms 97.33% of its industry peers.
- AMGN's Operating Margin has declined in the last couple of years.
- AMGN's Gross Margin of 72.06% is amongst the best of 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
- 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.
- 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.
- The Debt to FCF ratio of AMGN (4.28) is better than 92.00% 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.
- The Debt to Equity ratio of AMGN (5.45) is worse than 80.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.77
WACC8.68%
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.
- Looking at the Current ratio, with a value of 1.28, AMGN is doing worse than 83.05% of the companies in the same industry.
- 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.
- The Quick ratio of AMGN (0.99) is worse than 85.33% of its industry peers.
| 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.
- AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
- AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.56%.
- AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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.
- AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.
EPS Next Y9.46%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
EPS Next 5Y4.77%
Revenue Next Year9.4%
Revenue Next 2Y5.49%
Revenue Next 3Y4.57%
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.
- 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 15.76, which indicates a correct valuation of AMGN.
- Based on the Price/Earnings ratio, AMGN is valued cheaper than 96.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AMGN is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.39, AMGN is valued correctly.
- AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.81% of the companies in the same industry.
- AMGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 15.39 |
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 95.62% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
- The 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)1.67
PEG (5Y)2.64
EPS Next 2Y6.31%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
- AMGN has a Yearly Dividend Yield of 2.90%. 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 1.18. AMGN pays more dividend than 98.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AMGN pays a better dividend.
| 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 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)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.
- The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
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 9.46% in the next year.