AMGEN INC (AMGN)
US0311621009 - Common Stock
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 578 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are concerns on its financial health. AMGN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AMGN was profitable.
AMGN had a positive operating cash flow in the past year.
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
The Return On Assets of AMGN (4.05%) is better than 95.11% of its industry peers.
Looking at the Return On Equity, with a value of 74.93%, AMGN belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.
AMGN has a better Return On Invested Capital (8.41%) than 95.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is in line with the industry average of 15.45%.
The last Return On Invested Capital (8.41%) for AMGN is well below the 3 year average (14.42%), which needs to be investigated, but indicates that AMGN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 74.93% | ||
| ROIC | 8.41% |
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 12.74%, AMGN belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
The Operating Margin of AMGN (23.89%) is better than 97.56% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
AMGN has a better Gross Margin (66.38%) than 82.20% of its industry peers.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.89% | ||
| PM (TTM) | 12.74% | ||
| GM | 66.38% |
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
AMGN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AMGN has more shares outstanding
Compared to 5 years ago, AMGN has less shares outstanding
The debt/assets ratio for AMGN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
AMGN has a Altman-Z score of 1.35. This is in the better half of the industry: AMGN outperforms 66.67% of its industry peers.
The Debt to FCF ratio of AMGN is 9.02, which is on the high side as it means it would take AMGN, 9.02 years of fcf income to pay off all of its debts.
AMGN's Debt to FCF ratio of 9.02 is amongst the best of the industry. AMGN outperforms 94.24% of its industry peers.
A Debt/Equity ratio of 11.96 is on the high side and indicates that AMGN has dependencies on debt financing.
With a Debt to Equity ratio value of 11.96, AMGN is not doing good in the industry: 84.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.96 | ||
| Debt/FCF | 9.02 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.1
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.42 indicates that AMGN should not have too much problems paying its short term obligations.
The Current ratio of AMGN (1.42) is worse than 83.60% of its industry peers.
AMGN has a Quick Ratio of 1.42. 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 (0.98) is worse than 87.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
AMGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.95%.
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.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 12.76% in the last year.
AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.49% yearly.
EPS 1Y (TTM)6.95%
EPS 3Y3.96%
EPS 5Y5.29%
EPS Q2Q%-0.5%
Revenue 1Y (TTM)12.76%
Revenue growth 3Y3.5%
Revenue growth 5Y3.49%
Sales Q2Q%21.98%
3.2 Future
The Earnings Per Share is expected to grow by 5.07% 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 4.90% on average per year.
EPS Next Y6.45%
EPS Next 2Y5.74%
EPS Next 3Y5.47%
EPS Next 5Y5.07%
Revenue Next Year17.22%
Revenue Next 2Y9.8%
Revenue Next 3Y7.19%
Revenue Next 5Y4.9%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AMGN is valuated correctly with a Price/Earnings ratio of 16.18.
96.86% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.42, AMGN is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.46, which indicates a correct valuation of AMGN.
95.64% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
AMGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
AMGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMGN is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 18.45 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)3.06
EPS Next 2Y5.74%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 25.52, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 10.43%!
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)10.43%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
AMGN pays out 122.96% of its income as dividend. 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.
DP122.96%
EPS Next 2Y5.74%
EPS Next 3Y5.47%
AMGEN INC
NASDAQ:AMGN (6/17/2024, 11:28:07 AM)
301.47
+2.85 (+0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap161.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 14.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.51
PEG (5Y)3.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 74.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.89% | ||
| PM (TTM) | 12.74% | ||
| GM | 66.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.95%
EPS 3Y3.96%
EPS 5Y
EPS Q2Q%
EPS Next Y6.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.76%
Revenue growth 3Y3.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y