AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 555 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are some minor concerns on its financial health. AMGN has a correct valuation and a medium growth rate.
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
With an excellent Return On Assets value of 6.64%, AMGN belongs to the best of the industry, outperforming 92.97% of the companies in the same industry.
AMGN's Return On Equity of 95.59% is amongst the best of the industry. AMGN outperforms 99.10% of its industry peers.
AMGN has a better Return On Invested Capital (11.30%) than 95.68% 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 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROIC | 11.3% |
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
Looking at the Profit Margin, with a value of 17.39%, AMGN belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 25.22%. This is amongst the best in the industry. AMGN outperforms 96.76% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a Gross Margin of 64.07%. This is in the better half of the industry: AMGN outperforms 79.82% of its industry peers.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMGN is creating some value.
The number of shares outstanding for AMGN has been increased compared to 1 year ago.
AMGN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMGN has an improved debt to assets ratio.
2.2 Solvency
AMGN has an Altman-Z score of 1.41. This is a bad value and indicates that AMGN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AMGN (1.41) is better than 67.93% of its industry peers.
AMGN has a debt to FCF ratio of 5.26. This is a neutral value as AMGN would need 5.26 years to pay back of all of its debts.
AMGN's Debt to FCF ratio of 5.26 is amongst the best of the industry. AMGN outperforms 92.79% of its industry peers.
AMGN has a Debt/Equity ratio of 8.70. This is a high value indicating a heavy dependency on external financing.
AMGN's Debt to Equity ratio of 8.70 is on the low side compared to the rest of the industry. AMGN is outperformed by 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.48
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN has a worse Current ratio (1.17) than 85.59% of its industry peers.
AMGN has a Quick Ratio of 1.17. 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's Quick ratio of 0.88 is on the low side compared to the rest of the industry. AMGN is outperformed by 88.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.43% over the past year.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.56%.
Measured over the past years, AMGN shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
EPS 1Y (TTM)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
3.2 Future
The Earnings Per Share is expected to grow by 4.13% on average over the next years.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y7.5%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.83%
Revenue Next 5Y2.73%
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 13.99.
95.86% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.26, which indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 95.14% of the companies are valued more expensively.
AMGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaply inside the industry as 95.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMGN does not grow enough to justify the current Price/Earnings ratio.
AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)2.34
EPS Next 2Y5.16%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, AMGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 96.38, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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 82.64% 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.
DP82.64%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
290.52
+11.31 (+4.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner Change3.04%
Ins Owners0.06%
Ins Owner Change-0.29%
Market Cap156.22B
Analysts72.82
Price Target320.26 (10.24%)
Short Float %2.47%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.11%
Min EPS beat(2)2.49%
Max EPS beat(2)11.73%
EPS beat(4)3
Avg EPS beat(4)4.63%
Min EPS beat(4)-2.66%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.24%
EPS beat(16)14
Avg EPS beat(16)3.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)0.01%
PT rev (3m)-1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.26 | ||
| P/S | 4.58 | ||
| P/FCF | 14.31 | ||
| P/OCF | 12.81 | ||
| P/B | 25.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)20.76
EY7.15%
EPS(NY)21.92
Fwd EY7.54%
FCF(TTM)20.3
FCFY6.99%
OCF(TTM)22.67
OCFY7.8%
SpS63.47
BVpS11.54
TBVpS-70.97
PEG (NY)1.87
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROCE | 12.97% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 56.9% | ||
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% | ||
| FCFM | 31.98% |
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%
ROICexcg growth 3Y3.26%
ROICexcg 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-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 22.89% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | 183.97% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.41 |
F-Score6
WACC7.66%
ROIC/WACC1.48
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)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
EPS Next Y7.5%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
EPS Next 5Y4.13%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.83%
Revenue Next 5Y2.73%
EBIT growth 1Y22.01%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.48%
EBIT Next 3Y10.41%
EBIT Next 5Y5.07%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%