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 572 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are some minor concerns on its financial health. AMGN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
AMGN's Return On Assets of 4.45% is amongst the best of the industry. AMGN outperforms 94.49% of its industry peers.
AMGN has a better Return On Equity (69.59%) than 99.47% of its industry peers.
The Return On Invested Capital of AMGN (9.20%) is better than 95.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is below the industry average of 14.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROIC | 9.2% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
1.3 Margins
AMGN's Profit Margin of 12.24% is amongst the best of the industry. AMGN outperforms 95.91% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
The Operating Margin of AMGN (21.71%) is better than 96.45% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 61.53%, AMGN is doing good in the industry, outperforming 79.75% of the companies in the same industry.
AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% |
OM growth 3Y-14.87%
OM growth 5Y-12.2%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
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
AMGN has less shares outstanding than it did 5 years ago.
AMGN has a better debt/assets ratio than last year.
2.2 Solvency
AMGN has an Altman-Z score of 1.42. This is a bad value and indicates that AMGN is not financially healthy and even has some risk of bankruptcy.
AMGN has a better Altman-Z score (1.42) than 68.38% of its industry peers.
The Debt to FCF ratio of AMGN is 5.78, which is a neutral value as it means it would take AMGN, 5.78 years of fcf income to pay off all of its debts.
AMGN has a better Debt to FCF ratio (5.78) than 93.25% of its industry peers.
A Debt/Equity ratio of 9.62 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN's Debt to Equity ratio of 9.62 is on the low side compared to the rest of the industry. AMGN is outperformed by 85.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 1.42 |
ROIC/WACC1
WACC9.2%
2.3 Liquidity
AMGN has a Current Ratio of 1.26. This is a normal value and indicates that AMGN is financially healthy and should not expect problems in meeting its short term obligations.
AMGN's Current ratio of 1.26 is on the low side compared to the rest of the industry. AMGN is outperformed by 84.37% of its industry peers.
A Quick Ratio of 0.95 indicates that AMGN may have some problems paying its short term obligations.
AMGN's Quick ratio of 0.95 is on the low side compared to the rest of the industry. AMGN is outperformed by 87.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.27% 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 18.57%.
AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
EPS 1Y (TTM)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
3.2 Future
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.52% yearly.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 2.58% on average per year.
EPS Next Y6.15%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
EPS Next 5Y4.52%
Revenue Next Year5.92%
Revenue Next 2Y4.04%
Revenue Next 3Y3.17%
Revenue Next 5Y2.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 15.29, which indicates a correct valuation of AMGN.
AMGN's Price/Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 96.63% of the companies in the same industry.
AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 14.40, AMGN is valued correctly.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
96.98% 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 | 15.65 | ||
| EV/EBITDA | 16.41 |
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)2.48
PEG (5Y)2.56
EPS Next 2Y5.22%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, 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 9.37. AMGN pays more dividend than 98.93% of the companies in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
AMGN has been paying a dividend for at least 10 years, so it has 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 118.14% of its income as dividend. This is not a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.14%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
303.01
+5.08 (+1.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner Change-87.7%
Ins Owners0.07%
Ins Owner Change-11.33%
Market Cap162.72B
Analysts73.33
Price Target328.08 (8.27%)
Short Float %2.38%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP118.14%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.73%
Min EPS beat(2)2.49%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-2.66%
Max EPS beat(4)6.97%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)10
Avg EPS beat(12)2.41%
EPS beat(16)13
Avg EPS beat(16)2.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)-0.66%
PT rev (3m)-4.18%
EPS NQ rev (1m)-8.01%
EPS NQ rev (3m)-12.23%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)2.18%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.29 | ||
| Fwd PE | 14.4 | ||
| P/S | 4.87 | ||
| P/FCF | 15.65 | ||
| P/OCF | 14.16 | ||
| P/B | 27.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.41 |
EPS(TTM)19.82
EY6.54%
EPS(NY)21.04
Fwd EY6.94%
FCF(TTM)19.36
FCFY6.39%
OCF(TTM)21.4
OCFY7.06%
SpS62.24
BVpS10.94
TBVpS-75.34
PEG (NY)2.48
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROCE | 10.56% | ||
| ROIC | 9.2% | ||
| ROICexc | 11.14% | ||
| ROICexgc | 60.62% | ||
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% | ||
| FCFM | 31.1% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
ROICexc(3y)14.54%
ROICexc(5y)16.53%
ROICexgc(3y)69.08%
ROICexgc(5y)73.09%
ROCE(3y)13.81%
ROCE(5y)15.58%
ROICexcg growth 3Y-6.12%
ROICexcg growth 5Y-22.74%
ROICexc growth 3Y-16.97%
ROICexc growth 5Y-12.97%
OM growth 3Y-14.87%
OM growth 5Y-12.2%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 19.6% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 89.42% | ||
| Profit Quality | 254.13% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.42 |
F-Score6
WACC9.2%
ROIC/WACC1
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)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
EPS Next Y6.15%
EPS Next 2Y5.22%
EPS Next 3Y4.34%
EPS Next 5Y4.52%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
Revenue Next Year5.92%
Revenue Next 2Y4.04%
Revenue Next 3Y3.17%
Revenue Next 5Y2.58%
EBIT growth 1Y-11.1%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year35.23%
EBIT Next 3Y8.19%
EBIT Next 5Y4.82%
FCF growth 1Y41.24%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y35.64%
OCF growth 3Y7.45%
OCF growth 5Y4.66%