AMGEN INC (AMGN)
US0311621009 - Common Stock
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 565 industry peers in the Biotechnology industry. While AMGN belongs to the best of the industry regarding profitability, there are concerns on its financial health. AMGN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMGN was profitable.
In the past year AMGN had a positive cash flow from operations.
Each year in the past 5 years AMGN has been profitable.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.65%, AMGN belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
AMGN's Return On Equity of 56.20% is amongst the best of the industry. AMGN outperforms 99.29% of its industry peers.
AMGN has a Return On Invested Capital of 7.72%. This is amongst the best in 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 13.59%.
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
Looking at the Profit Margin, with a value of 13.00%, AMGN belongs to the top of the industry, outperforming 95.75% of the companies in the same industry.
AMGN's Profit Margin has declined in the last couple of years.
AMGN has a better Operating Margin (19.16%) than 96.28% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a better Gross Margin (60.48%) than 79.65% of its industry peers.
In the last couple of years the Gross Margin of AMGN has declined.
| 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.
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.
The debt/assets ratio for AMGN is higher compared to a year ago.
2.2 Solvency
AMGN has an Altman-Z score of 1.30. 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 (1.30) than 67.96% of its industry peers.
The Debt to FCF ratio of AMGN is 9.61, which is on the high side as it means it would take AMGN, 9.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMGN (9.61) is better than 93.27% of its industry peers.
AMGN has a Debt/Equity ratio of 7.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.55, AMGN is doing worse than 83.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.73
WACC10.57%
2.3 Liquidity
A Current Ratio of 1.32 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN has a worse Current ratio (1.32) than 83.01% of its industry peers.
A Quick Ratio of 0.96 indicates that AMGN may have some problems paying its short term obligations.
AMGN has a Quick ratio of 0.96. This is amonst the worse of the industry: AMGN underperforms 87.08% 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.
Measured over the past 5 years, AMGN shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
The Revenue has grown by 21.25% in the past year. This is a very strong growth!
Measured over the past years, AMGN shows a small growth in Revenue. The Revenue has been growing by 3.49% on average per year.
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
The Earnings Per Share is expected to grow by 4.38% on average over the next years.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y3.59%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
EPS Next 5Y4.38%
Revenue Next Year17.85%
Revenue Next 2Y10.41%
Revenue Next 3Y7.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.70, AMGN is valued correctly.
AMGN's Price/Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 97.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (27.20), we can say AMGN is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.52, which indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaper than 97.35% of the companies in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.11% of the companies listed in the same industry.
96.11% 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 | 22.53 | ||
| EV/EBITDA | 16.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)3.82
PEG (5Y)2.59
EPS Next 2Y6.19%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of AMGN has falen by -21.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AMGN's Dividend Yield is rather good when compared to the industry average which is at 8.71. AMGN pays more dividend than 99.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AMGN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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
AMGN pays out 112.70% 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.
DP112.7%
EPS Next 2Y6.19%
EPS Next 3Y5.11%
AMGEN INC
NASDAQ:AMGN (12/20/2024, 8:00:00 PM)
After market: 263.38 0 (0%)263.38
+2.19 (+0.84%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners80.93%
Inst Owner Change2.63%
Ins Owners0.07%
Ins Owner Change-9.15%
Market Cap141.57B
Analysts73.85
Price Target336.33 (27.7%)
Short Float %2.08%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)-1.31%
PT rev (3m)0.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)-3.37%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.52 | ||
| P/S | 4.35 | ||
| P/FCF | 22.53 | ||
| P/OCF | 19.51 | ||
| P/B | 18.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.34 |
EPS(TTM)19.22
EY7.3%
EPS(NY)21.03
Fwd EY7.98%
FCF(TTM)11.69
FCFY4.44%
OCF(TTM)13.5
OCFY5.13%
SpS60.52
BVpS14
TBVpS-74.51
PEG (NY)3.82
PEG (5Y)2.59
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 | 1.3 |
F-Score5
WACC10.57%
ROIC/WACC0.73
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 Year17.85%
Revenue Next 2Y10.41%
Revenue Next 3Y7.4%
Revenue Next 5Y4.91%
EBIT growth 1Y-31.58%
EBIT growth 3Y-3.69%
EBIT growth 5Y-5.15%
EBIT Next Year47.48%
EBIT Next 3Y13.94%
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%