329.89 USD
-10.27 (-3.02%)
329.49 USD
-0.4 (-0.12%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 531 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but 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.
In the past year AMGN had a positive cash flow from operations.
Each year in the past 5 years AMGN has 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 92.90% of its industry peers.
With an excellent Return On Equity value of 72.82%, AMGN belongs to the best of the industry, outperforming 99.07% of the companies in the same industry.
The Return On Invested Capital of AMGN (15.39%) is better than 96.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is significantly below the industry average of 18.22%.
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
The Profit Margin of AMGN (19.47%) is better than 93.27% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
AMGN has a Operating Margin of 33.57%. This is amongst the best in the industry. AMGN outperforms 97.20% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a better Gross Margin (72.06%) than 82.24% of its industry peers.
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) just above the Cost of Capital (WACC), AMGN is creating some value.
The number of shares outstanding for AMGN has been increased compared to 1 year ago.
AMGN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMGN has an improved debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 4.28, AMGN belongs to the top of the industry, outperforming 91.96% of the companies in the same industry.
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 82.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.28 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN has a worse Current ratio (1.28) than 84.49% 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.
AMGN has a worse Quick ratio (0.99) than 87.29% of its industry peers.
| 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.
The Revenue has grown by 10.56% in the past year. This is quite good.
The Revenue has been growing slightly by 7.43% on average over the past years.
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
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.48% yearly.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 3.55% on average per year.
EPS Next Y9.43%
EPS Next 2Y6.17%
EPS Next 3Y5.25%
EPS Next 5Y4.48%
Revenue Next Year9.42%
Revenue Next 2Y5.5%
Revenue Next 3Y4.54%
Revenue Next 5Y3.55%
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
Based on the Price/Earnings ratio of 15.08, the valuation of AMGN can be described as correct.
Based on the Price/Earnings ratio, AMGN is valued cheaply inside the industry as 95.70% of the companies are valued more expensively.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.77, the valuation of AMGN can be described as correct.
96.45% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.77 |
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 95.70% of the companies listed in the same industry.
96.82% 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 | 13.93 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
AMGN's 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)1.6
PEG (5Y)2.53
EPS Next 2Y6.17%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 2.80%. 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 66.57. AMGN pays more dividend than 98.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.17%
EPS Next 3Y5.25%
329.89
-10.27 (-3.02%)
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 Cap177.64B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72.2
Price Target333.07 (0.96%)
Short Float %2.49%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)4.2%
PT rev (3m)4.03%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-7.89%
EPS NY rev (1m)1.12%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.77 | ||
| P/S | 4.94 | ||
| P/FCF | 13.93 | ||
| P/OCF | 13.53 | ||
| P/B | 18.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.61 |
EPS(TTM)21.87
EY6.63%
EPS(NY)22.34
Fwd EY6.77%
FCF(TTM)23.69
FCFY7.18%
OCF(TTM)24.38
OCFY7.39%
SpS66.8
BVpS17.86
TBVpS-59.79
PEG (NY)1.6
PEG (5Y)2.53
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
WACC8.57%
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 Y9.43%
EPS Next 2Y6.17%
EPS Next 3Y5.25%
EPS Next 5Y4.48%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
Revenue Next Year9.42%
Revenue Next 2Y5.5%
Revenue Next 3Y4.54%
Revenue Next 5Y3.55%
EBIT growth 1Y93.73%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year42.82%
EBIT Next 3Y11.34%
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 15.08 and the Price/Book (PB) ratio is 18.47.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.