AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 558 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, but there are some minor concerns on its financial health. AMGN has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 6.64%, AMGN belongs to the top of the industry, outperforming 93.01% of the companies in the same industry.
Looking at the Return On Equity, with a value of 95.59%, AMGN belongs to the top of the industry, outperforming 99.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.30%, AMGN belongs to the top of the industry, outperforming 95.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMGN is in line with the industry average of 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROIC | 11.3% |
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 17.39% is amongst the best of the industry. AMGN outperforms 94.98% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
Looking at the Operating Margin, with a value of 25.22%, AMGN belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a better Gross Margin (64.07%) than 80.11% of its industry peers.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% |
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.
The debt/assets ratio for AMGN has been reduced compared to a year ago.
2.2 Solvency
AMGN has an Altman-Z score of 1.47. This is a bad value and indicates that AMGN is not financially healthy and even has some risk of bankruptcy.
AMGN's Altman-Z score of 1.47 is fine compared to the rest of the industry. AMGN outperforms 69.00% of its industry peers.
The Debt to FCF ratio of AMGN is 5.26, which is a neutral value as it means it would take AMGN, 5.26 years of fcf income to pay off all of its debts.
AMGN has a Debt to FCF ratio of 5.26. This is amongst the best in the industry. AMGN outperforms 92.83% of its industry peers.
AMGN has a Debt/Equity ratio of 8.70. This is a high value indicating a heavy dependency on external financing.
AMGN's Debt to Equity ratio of 8.70 is on the low side compared to the rest of the industry. AMGN is outperformed by 83.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.18
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AMGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, AMGN is doing worse than 85.13% of the companies in the same industry.
AMGN has a Quick Ratio of 1.17. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMGN (0.88) is worse than 87.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, which is quite good.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 15.56% 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)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
3.2 Future
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.13% yearly.
The Revenue is expected to grow by 2.73% on average over the next years.
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y4.04%
Revenue Next 3Y3.76%
Revenue Next 5Y2.73%
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
A Price/Earnings ratio of 14.24 indicates a correct valuation of AMGN.
95.70% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.48, the valuation of AMGN can be described as correct.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. AMGN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)2.38
EPS Next 2Y5.19%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.17%.
Compared to an average industry Dividend Yield of 90.20, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 9.41%!
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
82.64% of the earnings are spent on dividend by AMGN. This is not a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.64%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
NASDAQ:AMGN (7/14/2025, 3:15:56 PM)
295.65
+0.38 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner Change0.03%
Ins Owners0.06%
Ins Owner Change-0.29%
Market Cap158.97B
Analysts72.82
Price Target320.26 (8.32%)
Short Float %2.47%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.11%
Min EPS beat(2)2.49%
Max EPS beat(2)11.73%
EPS beat(4)3
Avg EPS beat(4)4.63%
Min EPS beat(4)-2.66%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.24%
EPS beat(16)14
Avg EPS beat(16)3.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)0%
PT rev (3m)-1.77%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.48 | ||
| P/S | 4.66 | ||
| P/FCF | 14.56 | ||
| P/OCF | 13.04 | ||
| P/B | 25.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.61 |
EPS(TTM)20.76
EY7.02%
EPS(NY)21.93
Fwd EY7.42%
FCF(TTM)20.3
FCFY6.87%
OCF(TTM)22.67
OCFY7.67%
SpS63.47
BVpS11.54
TBVpS-70.97
PEG (NY)1.91
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROCE | 12.97% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 56.9% | ||
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% | ||
| FCFM | 31.98% |
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-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 22.89% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | 183.97% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.47 |
F-Score6
WACC9.54%
ROIC/WACC1.18
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)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.13%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.35%
Revenue Next 2Y4.04%
Revenue Next 3Y3.76%
Revenue Next 5Y2.73%
EBIT growth 1Y22.01%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.48%
EBIT Next 3Y10.41%
EBIT Next 5Y5.07%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%