327.38 USD
+2.96 (+0.91%)
328.5 USD
+1.12 (+0.34%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 530 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, 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.
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's Return On Assets of 7.77% is amongst the best of the industry. AMGN outperforms 92.86% of its industry peers.
AMGN has a better Return On Equity (72.82%) than 99.06% of its industry peers.
The Return On Invested Capital of AMGN (15.39%) is better than 96.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMGN is significantly below the industry average of 18.22%.
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
AMGN's Profit Margin of 19.47% is amongst the best of the industry. AMGN outperforms 93.23% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
With an excellent Operating Margin value of 33.57%, AMGN belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a Gross Margin of 72.06%. This is amongst the best in the industry. AMGN outperforms 82.71% 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
AMGN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
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's Debt to FCF ratio of 4.28 is amongst the best of the industry. AMGN outperforms 91.92% 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 82.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.81
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.28 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN's Current ratio of 1.28 is on the low side compared to the rest of the industry. AMGN is outperformed by 84.59% of its industry peers.
A Quick Ratio of 0.99 indicates that AMGN may have some problems paying its short term obligations.
The Quick ratio of AMGN (0.99) is worse than 87.41% 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.
AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
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
Based on estimates for the next years, AMGN will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
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
AMGN is valuated correctly with a Price/Earnings ratio of 14.97.
95.68% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.39.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 14.65.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 96.24% 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 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
AMGN's 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)1.59
PEG (5Y)2.51
EPS Next 2Y6.17%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.11%. 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 1.02. AMGN pays more dividend than 99.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AMGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.17%
EPS Next 3Y5.25%
327.38
+2.96 (+0.91%)
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 Cap176.29B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72.2
Price Target334.67 (2.23%)
Short Float %2.67%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)4.7%
PT rev (3m)4.66%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)1.12%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.65 | ||
| P/S | 4.9 | ||
| P/FCF | 13.82 | ||
| P/OCF | 13.43 | ||
| P/B | 18.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.53 |
EPS(TTM)21.87
EY6.68%
EPS(NY)22.34
Fwd EY6.82%
FCF(TTM)23.69
FCFY7.24%
OCF(TTM)24.38
OCFY7.45%
SpS66.8
BVpS17.86
TBVpS-59.79
PEG (NY)1.59
PEG (5Y)2.51
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
WACC8.5%
ROIC/WACC1.81
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 14.97 and the Price/Book (PB) ratio is 18.33.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.