317.74 USD
+0.36 (+0.11%)
318.342 USD
+0.6 (+0.19%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 529 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some 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.
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 92.82% of the companies in the same industry.
The Return On Equity of AMGN (72.82%) is better than 99.05% of its industry peers.
AMGN's Return On Invested Capital of 15.39% is amongst the best of the industry. AMGN outperforms 96.03% of its industry peers.
AMGN had an Average Return On Invested Capital over the past 3 years of 13.04%. This is significantly below the industry average of 18.22%.
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
Looking at the Profit Margin, with a value of 19.47%, AMGN belongs to the top of the industry, outperforming 93.19% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
Looking at the Operating Margin, with a value of 33.57%, AMGN belongs to the top of the industry, outperforming 97.16% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 72.06%, AMGN belongs to the top of the industry, outperforming 82.42% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AMGN is creating value.
The number of shares outstanding for AMGN has been increased compared to 1 year ago.
The number of shares outstanding for AMGN has been reduced compared to 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.
The Debt to FCF ratio of AMGN (4.28) is better than 91.87% 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.
AMGN has a Debt to Equity ratio of 5.45. This is amonst the worse of the industry: AMGN underperforms 82.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC8.54%
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 84.88% of its industry peers.
A Quick Ratio of 0.99 indicates that AMGN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, AMGN is doing worse than 87.71% of the companies in the same industry.
| 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.
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.
AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.56%.
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
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.
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
Based on the Price/Earnings ratio of 14.53, the valuation of AMGN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 95.65% of the companies listed in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.22, which indicates a correct valuation of AMGN.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 96.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMGN to the average of the S&P500 Index (23.79), we can say AMGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 96.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.41 | ||
| EV/EBITDA | 12.24 |
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)1.54
PEG (5Y)2.43
EPS Next 2Y6.17%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.18%.
Compared to an average industry Dividend Yield of 1.15, AMGN pays a better dividend. On top of this AMGN pays more dividend than 99.05% of the companies listed in the same industry.
AMGN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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
17.20% of the earnings are spent on dividend by AMGN. This is a low number and 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%
317.74
+0.36 (+0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.83%
Inst Owner Change-3.49%
Ins Owners0.06%
Ins Owner Change-0.77%
Market Cap171.10B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72.2
Price Target333.07 (4.82%)
Short Float %2.49%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)4.16%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-7.82%
EPS NY rev (1m)1.12%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 14.22 | ||
| P/S | 4.76 | ||
| P/FCF | 13.41 | ||
| P/OCF | 13.03 | ||
| P/B | 17.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.24 |
EPS(TTM)21.87
EY6.88%
EPS(NY)22.34
Fwd EY7.03%
FCF(TTM)23.69
FCFY7.45%
OCF(TTM)24.38
OCFY7.67%
SpS66.8
BVpS17.86
TBVpS-59.79
PEG (NY)1.54
PEG (5Y)2.43
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
WACC8.54%
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 14.53 and the Price/Book (PB) ratio is 17.79.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.