344.57 USD
+3.46 (+1.01%)
344.081 USD
-0.49 (-0.14%)
AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 533 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 decent growth rate and is not valued too expensively. 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.
AMGN had positive earnings in each of the past 5 years.
Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.77%, AMGN belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
AMGN has a Return On Equity of 72.82%. This is amongst the best in the industry. AMGN outperforms 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 95.87% 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 18.83%.
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
AMGN has a better Profit Margin (19.47%) than 94.00% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
With an excellent Operating Margin value of 33.57%, AMGN belongs to the best of the industry, outperforming 97.19% of the companies in the same industry.
In the last couple of years the Operating Margin of AMGN has declined.
AMGN's Gross Margin of 72.06% is amongst the best of the industry. AMGN outperforms 82.18% 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 well above the Cost of Capital (WACC), which means it is creating 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
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's Debt to FCF ratio of 4.28 is amongst the best of the industry. AMGN outperforms 91.93% 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.
Looking at the Debt to Equity ratio, with a value of 5.45, AMGN is doing worse than 82.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.81
WACC8.49%
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.
With a Current ratio value of 1.28, AMGN is not doing good in the industry: 84.05% 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.
AMGN has a worse Quick ratio (0.99) than 86.87% 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.
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 4.18% on average per year.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y8.22%
EPS Next 2Y5.36%
EPS Next 3Y4.87%
EPS Next 5Y4.18%
Revenue Next Year7.43%
Revenue Next 2Y4.6%
Revenue Next 3Y3.97%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.76.
Based on the Price/Earnings ratio, AMGN is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. AMGN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.66 indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
AMGN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 96.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.54 | ||
| EV/EBITDA | 13.06 |
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.
AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)2.64
EPS Next 2Y5.36%
EPS Next 3Y4.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, AMGN has a reasonable but not impressive dividend return.
AMGN's Dividend Yield is rather good when compared to the industry average which is at 74.20. AMGN pays more dividend than 98.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AMGN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
AMGN has paid a dividend for at least 10 years, which is 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
17.20% of the earnings are spent on dividend by AMGN. This is a low number and 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 2Y5.36%
EPS Next 3Y4.87%
344.57
+3.46 (+1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change-3.55%
Ins Owners0.06%
Ins Owner Change-0.85%
Market Cap185.50B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72
Price Target327.38 (-4.99%)
Short Float %2.5%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)2.32%
PT rev (3m)2.42%
EPS NQ rev (1m)-7.42%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 15.66 | ||
| P/S | 5.16 | ||
| P/FCF | 14.54 | ||
| P/OCF | 14.13 | ||
| P/B | 19.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.06 |
EPS(TTM)21.87
EY6.35%
EPS(NY)22
Fwd EY6.39%
FCF(TTM)23.69
FCFY6.88%
OCF(TTM)24.38
OCFY7.08%
SpS66.82
BVpS17.87
TBVpS-59.8
PEG (NY)1.92
PEG (5Y)2.64
Graham Number93.77
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
WACC8.49%
ROIC/WACC1.81
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 Y8.22%
EPS Next 2Y5.36%
EPS Next 3Y4.87%
EPS Next 5Y4.18%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
Revenue Next Year7.43%
Revenue Next 2Y4.6%
Revenue Next 3Y3.97%
Revenue Next 5Y3.22%
EBIT growth 1Y93.73%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year39.98%
EBIT Next 3Y10.33%
EBIT Next 5Y7.12%
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 15.76 and the Price/Book (PB) ratio is 19.29.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.