AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
301.14 USD
-2.19 (-0.72%)
302.34 USD
+1.2 (+0.4%)
AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 534 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, but there are concerns on its financial health. AMGN may be a bit undervalued, certainly considering the very reasonable score on growth Finally AMGN also has an excellent dividend rating.
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.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMGN has a Return On Assets of 7.53%. This is amongst the best in the industry. AMGN outperforms 92.32% of its industry peers.
AMGN's Return On Equity of 89.11% is amongst the best of the industry. AMGN outperforms 99.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.12%, AMGN belongs to the top of the industry, outperforming 95.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is below the industry average of 15.49%.
The last Return On Invested Capital (14.12%) for AMGN is above the 3 year average (13.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 89.11% | ||
| ROIC | 14.12% |
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 18.96%, AMGN belongs to the best of the industry, outperforming 94.01% of the companies in the same industry.
AMGN's Profit Margin has declined in the last couple of years.
AMGN's Operating Margin of 31.30% is amongst the best of the industry. AMGN outperforms 97.19% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 69.71%, AMGN belongs to the best of the industry, outperforming 81.27% of the companies in the same industry.
AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.3% | ||
| PM (TTM) | 18.96% | ||
| GM | 69.71% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMGN is still creating some 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 4.94, which is a neutral value as it means it would take AMGN, 4.94 years of fcf income to pay off all of its debts.
AMGN has a Debt to FCF ratio of 4.94. This is amongst the best in the industry. AMGN outperforms 92.32% of its industry peers.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a Debt to Equity ratio of 7.24. This is amonst the worse of the industry: AMGN underperforms 82.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.51
WACC9.33%
2.3 Liquidity
AMGN has a Current Ratio of 1.31. 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 1.31, AMGN is doing worse than 83.90% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that AMGN may have some problems paying its short term obligations.
AMGN's Quick ratio of 0.98 is on the low side compared to the rest of the industry. AMGN is outperformed by 86.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.26% 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.
AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.88%.
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)17.26%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%21.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
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 4.13% on average per year.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y8.45%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
EPS Next 5Y4.13%
Revenue Next Year7.54%
Revenue Next 2Y4.58%
Revenue Next 3Y3.91%
Revenue Next 5Y3.12%
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
Based on the Price/Earnings ratio of 13.81, 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 96.82% of the companies listed in the same industry.
AMGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
The Price/Forward Earnings ratio is 13.67, which indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
AMGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
AMGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMGN is cheaper than 94.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 96.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 12.73 |
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)1.63
PEG (5Y)2.31
EPS Next 2Y5.44%
EPS Next 3Y4.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, AMGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 93.65, AMGN pays a better dividend. On top of this AMGN pays more dividend than 99.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
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
36.49% 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.
DP36.49%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
301.14
-2.19 (-0.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change-0.34%
Ins Owners0.06%
Ins Owner Change1.07%
Market Cap162.12B
Revenue(TTM)34.92B
Net Income(TTM)6.62B
Analysts72
Price Target319.95 (6.25%)
Short Float %2.46%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP36.49%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.69%
Min EPS beat(2)11.64%
Max EPS beat(2)11.73%
EPS beat(4)4
Avg EPS beat(4)8.21%
Min EPS beat(4)2.49%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.35%
EPS beat(12)10
Avg EPS beat(12)3.9%
EPS beat(16)14
Avg EPS beat(16)4.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.68%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.9%
Revenue beat(16)4
Avg Revenue beat(16)-0.92%
PT rev (1m)0.06%
PT rev (3m)0.28%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13.67 | ||
| P/S | 4.64 | ||
| P/FCF | 14.24 | ||
| P/OCF | 13.5 | ||
| P/B | 21.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.73 |
EPS(TTM)21.81
EY7.24%
EPS(NY)22.04
Fwd EY7.32%
FCF(TTM)21.15
FCFY7.02%
OCF(TTM)22.31
OCFY7.41%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.63
PEG (5Y)2.31
Graham Number82.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 89.11% | ||
| ROCE | 16.21% | ||
| ROIC | 14.12% | ||
| ROICexc | 16.03% | ||
| ROICexgc | 59.12% | ||
| OM | 31.3% | ||
| PM (TTM) | 18.96% | ||
| GM | 69.71% | ||
| FCFM | 32.61% |
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.72% | ||
| Profit Quality | 172.01% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | N/A |
F-Score8
WACC9.33%
ROIC/WACC1.51
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)17.26%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%21.13%
EPS Next Y8.45%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
EPS Next 5Y4.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.54%
Revenue Next 2Y4.58%
Revenue Next 3Y3.91%
Revenue Next 5Y3.12%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year39.98%
EBIT Next 3Y10.33%
EBIT Next 5Y5.65%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%