326.1 USD
-4.01 (-1.21%)
325.8 USD
-0.3 (-0.09%)
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 528 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some concerns on its financial health. AMGN is not valued too expensively and it also shows a decent growth rate. Finally AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AMGN had positive earnings in the past year.
AMGN had a positive operating cash flow in the past year.
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 7.77%. This is amongst the best in the industry. AMGN outperforms 93.02% of its industry peers.
AMGN has a better Return On Equity (72.82%) than 99.06% of its industry peers.
The Return On Invested Capital of AMGN (15.39%) is better than 96.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMGN is significantly below the industry average of 18.28%.
The last Return On Invested Capital (15.39%) for AMGN is above the 3 year average (13.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 72.82% | ||
| ROIC | 15.39% |
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
With an excellent Profit Margin value of 19.47%, AMGN belongs to the best of the industry, outperforming 93.21% of the companies in the same industry.
AMGN's Profit Margin has declined in the last couple of years.
AMGN has a Operating Margin of 33.57%. This is amongst the best in the industry. AMGN outperforms 97.17% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a Gross Margin of 72.06%. This is amongst the best in the industry. AMGN outperforms 82.64% of its industry peers.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.57% | ||
| PM (TTM) | 19.47% | ||
| GM | 72.06% |
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 well above the Cost of Capital (WACC), so AMGN is creating 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.
AMGN has a better debt/assets ratio than last year.
2.2 Solvency
AMGN has a debt to FCF ratio of 4.28. This is a neutral value as AMGN would need 4.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.28, AMGN belongs to the top of the industry, outperforming 92.26% of the companies in the same industry.
A Debt/Equity ratio of 5.45 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a Debt to Equity ratio of 5.45. This is amonst the worse of the industry: AMGN underperforms 80.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC8.55%
2.3 Liquidity
AMGN has a Current Ratio of 1.28. 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 (1.28) than 83.02% of its industry peers.
A Quick Ratio of 0.99 indicates that AMGN may have some problems paying its short term obligations.
AMGN has a worse Quick ratio (0.99) than 85.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.79%, which is quite good.
AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
The Revenue has grown by 10.56% in the past year. This is quite good.
AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
EPS 1Y (TTM)13.79%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%1.08%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
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 4.77% on average per year.
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y9.46%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
EPS Next 5Y4.77%
Revenue Next Year9.43%
Revenue Next 2Y5.53%
Revenue Next 3Y4.57%
Revenue Next 5Y3.63%
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
AMGN is valuated correctly with a Price/Earnings ratio of 14.91.
Compared to the rest of the industry, the Price/Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. AMGN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.56, AMGN is valued correctly.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaper than 96.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 97.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
The 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)1.58
PEG (5Y)2.5
EPS Next 2Y6.31%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, 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 1.26. AMGN pays more dividend than 98.87% of the companies in the same industry.
AMGN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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
17.20% of the earnings are spent on dividend by AMGN. This is a low number and sustainable payout ratio.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.2%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
326.1
-4.01 (-1.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.87%
Inst Owner Change-0.04%
Ins Owners0.06%
Ins Owner Change-0.77%
Market Cap175.60B
Revenue(TTM)35.97B
Net Income(TTM)7.00B
Analysts72.2
Price Target334.67 (2.63%)
Short Float %2.63%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP17.2%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.96%
Min EPS beat(2)10.28%
Max EPS beat(2)11.64%
EPS beat(4)4
Avg EPS beat(4)9.04%
Min EPS beat(4)2.49%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)5.13%
EPS beat(12)10
Avg EPS beat(12)4.44%
EPS beat(16)14
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)0.68%
Max Revenue beat(2)4.49%
Revenue beat(4)3
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)4.49%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-0.48%
Revenue beat(16)5
Avg Revenue beat(16)-0.54%
PT rev (1m)0.48%
PT rev (3m)4.6%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 14.56 | ||
| P/S | 4.88 | ||
| P/FCF | 13.77 | ||
| P/OCF | 13.38 | ||
| P/B | 18.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)21.87
EY6.71%
EPS(NY)22.4
Fwd EY6.87%
FCF(TTM)23.69
FCFY7.26%
OCF(TTM)24.38
OCFY7.48%
SpS66.8
BVpS17.86
TBVpS-59.79
PEG (NY)1.58
PEG (5Y)2.5
Graham Number93.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 72.82% | ||
| ROCE | 17.67% | ||
| ROIC | 15.39% | ||
| ROICexc | 17.86% | ||
| ROICexgc | 61.56% | ||
| OM | 33.57% | ||
| PM (TTM) | 19.47% | ||
| GM | 72.06% | ||
| FCFM | 35.46% |
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%
ROICexgc growth 3Y3.26%
ROICexgc 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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.45 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.3% | ||
| Profit Quality | 182.08% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | N/A |
F-Score7
WACC8.55%
ROIC/WACC1.8
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)13.79%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%1.08%
EPS Next Y9.46%
EPS Next 2Y6.31%
EPS Next 3Y5.32%
EPS Next 5Y4.77%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%12.4%
Revenue Next Year9.43%
Revenue Next 2Y5.53%
Revenue Next 3Y4.57%
Revenue Next 5Y3.63%
EBIT growth 1Y93.73%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year42.71%
EBIT Next 3Y11.36%
EBIT Next 5Y7.69%
FCF growth 1Y36%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y24.04%
OCF growth 3Y7.45%
OCF growth 5Y4.66%
AMGEN INC / AMGN FAQ
Can you provide the ChartMill fundamental rating for AMGEN INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMGN.
What is the valuation status of AMGEN INC (AMGN) stock?
ChartMill assigns a valuation rating of 6 / 10 to AMGEN INC (AMGN). This can be considered as Fairly Valued.
What is the profitability of AMGN stock?
AMGEN INC (AMGN) has a profitability rating of 7 / 10.
How financially healthy is AMGEN INC?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.
What is the earnings growth outlook for AMGEN INC?
The Earnings per Share (EPS) of AMGEN INC (AMGN) is expected to grow by 9.46% in the next year.