AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
Overall AMGN gets a fundamental rating of 5 out of 10. We evaluated AMGN against 572 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.
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.
Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
AMGN has a Return On Assets of 4.65%. This is amongst the best in the industry. AMGN outperforms 94.69% of its industry peers.
AMGN has a Return On Equity of 56.20%. This is amongst the best in the industry. AMGN outperforms 99.29% of its industry peers.
AMGN's Return On Invested Capital of 7.72% is amongst the best of the industry. AMGN outperforms 95.22% of its industry peers.
AMGN had an Average Return On Invested Capital over the past 3 years of 14.42%. This is in line with the industry average of 13.83%.
The 3 year average ROIC (14.42%) for AMGN is well above the current ROIC(7.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROIC | 7.72% |
ROA(3y)8.87%
ROA(5y)10.26%
ROE(3y)124.9%
ROE(5y)106.6%
ROIC(3y)14.42%
ROIC(5y)15.39%
1.3 Margins
AMGN has a better Profit Margin (13.00%) than 95.75% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
With an excellent Operating Margin value of 19.16%, AMGN belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
AMGN's Gross Margin of 60.48% is fine compared to the rest of the industry. AMGN outperforms 79.47% of its industry peers.
AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% |
OM growth 3Y-6.95%
OM growth 5Y-8.35%
PM growth 3Y-5.87%
PM growth 5Y-7.58%
GM growth 3Y-2.54%
GM growth 5Y-3.25%
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.
AMGN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMGN has been reduced compared to 5 years ago.
The debt/assets ratio for AMGN is higher compared to a year ago.
2.2 Solvency
AMGN has an Altman-Z score of 1.33. This is a bad value and indicates that AMGN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.33, AMGN is doing good in the industry, outperforming 68.32% of the companies in the same industry.
AMGN has a debt to FCF ratio of 9.61. This is a negative value and a sign of low solvency as AMGN would need 9.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.61, AMGN belongs to the top of the industry, outperforming 93.27% of the companies in the same industry.
A Debt/Equity ratio of 7.55 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a Debt to Equity ratio of 7.55. This is amonst the worse of the industry: AMGN underperforms 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.72
WACC10.75%
2.3 Liquidity
AMGN has a Current Ratio of 1.32. 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 (1.32) than 83.72% of its industry peers.
AMGN has a Quick Ratio of 1.32. 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 (0.96) than 87.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.60% over the past year.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue has grown by 21.25% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)6.6%
EPS 3Y3.96%
EPS 5Y5.29%
EPS Q2Q%12.5%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%23.18%
3.2 Future
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.38% yearly.
The Revenue is expected to grow by 4.91% on average over the next years.
EPS Next Y3.59%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
EPS Next 5Y4.38%
Revenue Next Year17.88%
Revenue Next 2Y10.5%
Revenue Next 3Y7.5%
Revenue Next 5Y4.91%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AMGN is valuated correctly with a Price/Earnings ratio of 14.46.
97.17% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (28.64), we can say AMGN is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.21 indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.51. AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
95.93% of the companies in the same industry are more expensive than AMGN, based on the Enterprise Value to EBITDA ratio.
95.93% 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 | 23.77 | ||
| EV/EBITDA | 16.8 |
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)4.03
PEG (5Y)2.73
EPS Next 2Y6.19%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.83, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, AMGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 10.43%!
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)10.43%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
112.70% of the earnings are spent on dividend by AMGN. This is not a sustainable payout ratio.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP112.7%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
AMGEN INC
NASDAQ:AMGN (1/23/2025, 8:42:53 PM)
After market: 277.88 0 (0%)277.88
+4.44 (+1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners80.93%
Inst Owner Change-0.71%
Ins Owners0.07%
Ins Owner Change-9.35%
Market Cap149.37B
Analysts73.33
Price Target330.25 (18.85%)
Short Float %2.08%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend8.52
Dividend Growth(5Y)10.43%
DP112.7%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-2.66%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)1.22%
Min EPS beat(4)-2.66%
Max EPS beat(4)6.97%
EPS beat(8)6
Avg EPS beat(8)2.15%
EPS beat(12)10
Avg EPS beat(12)2.6%
EPS beat(16)13
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-1.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)-1.09%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)2
Avg Revenue beat(16)-1.52%
PT rev (1m)-1.81%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 13.21 | ||
| P/S | 4.59 | ||
| P/FCF | 23.77 | ||
| P/OCF | 20.58 | ||
| P/B | 19.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.8 |
EPS(TTM)19.22
EY6.92%
EPS(NY)21.03
Fwd EY7.57%
FCF(TTM)11.69
FCFY4.21%
OCF(TTM)13.5
OCFY4.86%
SpS60.52
BVpS14
TBVpS-74.51
PEG (NY)4.03
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 56.2% | ||
| ROCE | 8.83% | ||
| ROIC | 7.72% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 38.94% | ||
| OM | 19.16% | ||
| PM (TTM) | 13% | ||
| GM | 60.48% | ||
| FCFM | 19.31% |
ROA(3y)8.87%
ROA(5y)10.26%
ROE(3y)124.9%
ROE(5y)106.6%
ROIC(3y)14.42%
ROIC(5y)15.39%
ROICexc(3y)17.36%
ROICexc(5y)18.82%
ROICexgc(3y)73.48%
ROICexgc(5y)105.3%
ROCE(3y)16.51%
ROCE(5y)17.62%
ROICexcg growth 3Y-20.32%
ROICexcg growth 5Y-41.46%
ROICexc growth 3Y-18.8%
ROICexc growth 5Y-23.19%
OM growth 3Y-6.95%
OM growth 5Y-8.35%
PM growth 3Y-5.87%
PM growth 5Y-7.58%
GM growth 3Y-2.54%
GM growth 5Y-3.25%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 17.47% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.46% | ||
| Profit Quality | 148.53% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.33 |
F-Score5
WACC10.75%
ROIC/WACC0.72
Cap/Depr(3y)26.87%
Cap/Depr(5y)25.1%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3.18%
Profit Quality(3y)128.62%
Profit Quality(5y)126.16%
High Growth Momentum
Growth
EPS 1Y (TTM)6.6%
EPS 3Y3.96%
EPS 5Y5.29%
EPS Q2Q%12.5%
EPS Next Y3.59%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
EPS Next 5Y4.38%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%23.18%
Revenue Next Year17.88%
Revenue Next 2Y10.5%
Revenue Next 3Y7.5%
Revenue Next 5Y4.91%
EBIT growth 1Y-31.58%
EBIT growth 3Y-3.69%
EBIT growth 5Y-5.15%
EBIT Next Year50.28%
EBIT Next 3Y14.19%
EBIT Next 5Y8.48%
FCF growth 1Y-30.17%
FCF growth 3Y-9.38%
FCF growth 5Y-6.96%
OCF growth 1Y-26.55%
OCF growth 3Y-6.9%
OCF growth 5Y-5.59%