351.32 USD
+1.63 (+0.47%)
351.882 USD
+0.56 (+0.16%)
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 525 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are concerns on its financial health. AMGN has a correct valuation and a medium growth rate. 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.
- 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
- 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.
- AMGN has a Return On Invested Capital of 15.39%. This is amongst the best in the industry. AMGN outperforms 96.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AMGN is significantly below the industry average of 18.07%.
- 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
- 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.
- The Operating Margin of AMGN (33.57%) is better than 97.33% of its industry peers.
- AMGN's Operating Margin has declined in the last couple of years.
- The Gross Margin of AMGN (72.06%) is better than 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
- 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
- Compared to 5 years ago, AMGN has less shares outstanding
- The debt/assets ratio for AMGN has been reduced compared to a year ago.
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 has a Debt to FCF ratio of 4.28. This is amongst the best in the industry. AMGN outperforms 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.
- AMGN has a worse Debt to Equity ratio (5.45) than 80.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.78
WACC8.65%
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 82.86% 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.
- Looking at the Quick ratio, with a value of 0.99, AMGN is doing worse than 85.14% 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%.
- 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
- AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
- AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.
EPS Next Y9.5%
EPS Next 2Y6.38%
EPS Next 3Y5.42%
EPS Next 5Y4.77%
Revenue Next Year9.41%
Revenue Next 2Y5.56%
Revenue Next 3Y4.64%
Revenue Next 5Y3.63%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 16.06, the valuation of AMGN can be described as correct.
- Based on the Price/Earnings ratio, AMGN is valued cheaper than 96.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (28.87), we can say AMGN is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.66, which indicates a correct valuation of AMGN.
- Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
- AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
- AMGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.43% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 96.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 13.26 |
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)1.69
PEG (5Y)2.69
EPS Next 2Y6.38%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.90%, 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 1.08. AMGN pays more dividend than 98.86% of the companies in the same industry.
- AMGN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 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.
- AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.38%
EPS Next 3Y5.42%
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 9.5% in the next year.