AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
336 USD
-0.28 (-0.08%)
336.46 USD
+0.46 (+0.14%)
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 531 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. 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.
In the past 5 years AMGN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.77%, AMGN belongs to the top of the industry, outperforming 92.66% of the companies in the same industry.
AMGN's Return On Equity of 72.82% is amongst the best of the industry. AMGN outperforms 98.87% 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 96.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMGN is below the industry average of 15.76%.
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 93.79% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 33.57%. This is amongst the best in the industry. AMGN outperforms 97.36% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
The Gross Margin of AMGN (72.06%) is better than 82.49% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AMGN is creating value.
AMGN has more shares outstanding than it did 1 year ago.
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 92.28% 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 Debt to Equity ratio of 5.45. This is amonst the worse of the industry: AMGN underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.82
WACC8.44%
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.
AMGN has a worse Current ratio (1.28) than 84.93% of its industry peers.
A Quick Ratio of 0.99 indicates that AMGN may have some problems paying its short term obligations.
AMGN's Quick ratio of 0.99 is on the low side compared to the rest of the industry. AMGN is outperformed by 87.01% 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.
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
The Earnings Per Share is expected to grow by 4.18% on average over the next years.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
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
With a Price/Earnings ratio of 15.36, AMGN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 95.67% of the companies listed in the same industry.
AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 15.27.
95.67% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.57. AMGN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 15.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.86% of the companies are valued more expensively.
96.99% 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 | 14.18 | ||
| EV/EBITDA | 12.8 |
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)1.87
PEG (5Y)2.57
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.
Compared to an average industry Dividend Yield of 88.05, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.87% 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 | 2.83% |
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
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%
336
-0.28 (-0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change-1.22%
Ins Owners0.06%
Ins Owner Change0.31%
Market Cap180.89B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72
Price Target319.63 (-4.87%)
Short Float %2.14%
Short Ratio5.08
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)-0.1%
PT rev (3m)-0.11%
EPS NQ rev (1m)-5.78%
EPS NQ rev (3m)-9.11%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 15.27 | ||
| P/S | 5.03 | ||
| P/FCF | 14.18 | ||
| P/OCF | 13.78 | ||
| P/B | 18.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.8 |
EPS(TTM)21.87
EY6.51%
EPS(NY)22
Fwd EY6.55%
FCF(TTM)23.69
FCFY7.05%
OCF(TTM)24.38
OCFY7.26%
SpS66.82
BVpS17.87
TBVpS-59.8
PEG (NY)1.87
PEG (5Y)2.57
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
WACC8.44%
ROIC/WACC1.82
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 15.36 and the Price/Book (PB) ratio is 18.81.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.