AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
273.08 USD
-1.32 (-0.48%)
273.5 USD
+0.42 (+0.15%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 540 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some concerns on its financial health. AMGN is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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 7.53%, AMGN belongs to the top of the industry, outperforming 92.22% of the companies in the same industry.
AMGN's Return On Equity of 89.11% is amongst the best of the industry. AMGN outperforms 99.07% of its industry peers.
AMGN's Return On Invested Capital of 14.12% is amongst the best of the industry. AMGN outperforms 95.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMGN is below the industry average of 15.95%.
The 3 year average ROIC (13.04%) for AMGN is below the current ROIC(14.12%), indicating increased profibility in the last year.
| 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
AMGN has a Profit Margin of 18.96%. This is amongst the best in the industry. AMGN outperforms 94.07% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.30%, AMGN belongs to the top of the industry, outperforming 97.22% 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 69.71%, AMGN belongs to the top of the industry, outperforming 80.93% of the companies in the same industry.
In the last couple of years the Gross Margin of AMGN has declined.
| 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.
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.
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.
With an excellent Debt to FCF ratio value of 4.94, AMGN belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
AMGN has a Debt/Equity ratio of 7.24. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AMGN (7.24) is worse than 82.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.48
WACC9.53%
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 83.15% of the companies in the same industry.
AMGN has a Quick Ratio of 1.31. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
AMGN has a worse Quick ratio (0.98) than 86.67% 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.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 12.88% in the last year.
AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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 4.40% on average per year.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.4%
Revenue Next Year7.54%
Revenue Next 2Y4.58%
Revenue Next 3Y3.92%
Revenue Next 5Y3.19%
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
With a Price/Earnings ratio of 12.52, AMGN is valued correctly.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 96.30% of the companies in the same industry.
AMGN is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 12.35.
96.11% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaply inside the industry as 97.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.91 | ||
| EV/EBITDA | 11.86 |
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)1.46
PEG (5Y)2.1
EPS Next 2Y5.64%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, 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 178.49. AMGN pays more dividend than 98.89% of the companies in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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
AMGN pays out 36.49% of its income as dividend. This is a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
273.08
-1.32 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.64%
Inst Owner Change1.33%
Ins Owners0.06%
Ins Owner Change-0.57%
Market Cap147.02B
Analysts72
Price Target319.76 (17.09%)
Short Float %2.2%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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)-0.07%
PT rev (3m)-0.16%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 12.35 | ||
| P/S | 4.21 | ||
| P/FCF | 12.91 | ||
| P/OCF | 12.24 | ||
| P/B | 19.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.86 |
EPS(TTM)21.81
EY7.99%
EPS(NY)22.12
Fwd EY8.1%
FCF(TTM)21.15
FCFY7.74%
OCF(TTM)22.31
OCFY8.17%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.46
PEG (5Y)2.1
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%
ROICexcg growth 3Y3.26%
ROICexcg 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
WACC9.53%
ROIC/WACC1.48
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 Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.4%
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 3Y3.92%
Revenue Next 5Y3.19%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.97%
EBIT Next 3Y10.45%
EBIT Next 5Y5.82%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%