AMGEN INC (1AMGN.MI) Stock Fundamental Analysis
BIT:1AMGN - Euronext Milan - US0311621009 - Common Stock - Currency: EUR
1AMGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Biotechnology industry. While 1AMGN has a great profitability rating, there are quite some concerns on its financial health. 1AMGN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1AMGN was profitable.
In the past year 1AMGN had a positive cash flow from operations.
In the past 5 years 1AMGN has always been profitable.
In the past 5 years 1AMGN always reported a positive cash flow from operatings.
1.2 Ratios
1AMGN has a Return On Assets of 4.45%. This is amongst the best in the industry. 1AMGN outperforms 81.69% of its industry peers.
1AMGN has a Return On Equity of 69.59%. This is amongst the best in the industry. 1AMGN outperforms 97.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.20%, 1AMGN belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AMGN is in line with the industry average of 11.84%.
| 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
With an excellent Profit Margin value of 12.24%, 1AMGN belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AMGN has declined.
1AMGN has a Operating Margin of 21.71%. This is amongst the best in the industry. 1AMGN outperforms 85.92% of its industry peers.
In the last couple of years the Operating Margin of 1AMGN has declined.
1AMGN has a better Gross Margin (61.53%) than 60.56% of its industry peers.
In the last couple of years the Gross Margin of 1AMGN has declined.
| 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 1AMGN is still creating some value.
The number of shares outstanding for 1AMGN has been increased compared to 1 year ago.
Compared to 5 years ago, 1AMGN has less shares outstanding
1AMGN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that 1AMGN is in the distress zone and has some risk of bankruptcy.
1AMGN's Altman-Z score of 1.36 is in line compared to the rest of the industry. 1AMGN outperforms 57.75% of its industry peers.
The Debt to FCF ratio of 1AMGN is 5.78, which is a neutral value as it means it would take 1AMGN, 5.78 years of fcf income to pay off all of its debts.
1AMGN has a Debt to FCF ratio of 5.78. This is amongst the best in the industry. 1AMGN outperforms 80.28% of its industry peers.
A Debt/Equity ratio of 9.62 is on the high side and indicates that 1AMGN has dependencies on debt financing.
1AMGN has a Debt to Equity ratio of 9.62. This is in the lower half of the industry: 1AMGN underperforms 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.98
WACC9.38%
2.3 Liquidity
1AMGN has a Current Ratio of 1.26. This is a normal value and indicates that 1AMGN is financially healthy and should not expect problems in meeting its short term obligations.
1AMGN's Current ratio of 1.26 is on the low side compared to the rest of the industry. 1AMGN is outperformed by 66.20% of its industry peers.
A Quick Ratio of 0.95 indicates that 1AMGN may have some problems paying its short term obligations.
The Quick ratio of 1AMGN (0.95) is worse than 69.01% 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.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
1AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.57%.
Measured over the past years, 1AMGN shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
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
1AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.19% yearly.
Based on estimates for the next years, 1AMGN will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y6.33%
EPS Next 2Y5.5%
EPS Next 3Y4.56%
EPS Next 5Y4.19%
Revenue Next Year5.99%
Revenue Next 2Y4.13%
Revenue Next 3Y3.66%
Revenue Next 5Y2.67%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.47, the valuation of 1AMGN can be described as correct.
Based on the Price/Earnings ratio, 1AMGN is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.43. 1AMGN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.61, the valuation of 1AMGN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 90.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, 1AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AMGN indicates a rather cheap valuation: 1AMGN is cheaper than 80.28% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1AMGN is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.84 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1AMGN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1AMGN may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)2.42
EPS Next 2Y5.5%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
1AMGN has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
1AMGN's Dividend Yield is rather good when compared to the industry average which is at 9.52. 1AMGN pays more dividend than 95.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of 1AMGN is nicely growing with an annual growth rate of 9.41%!
Dividend Growth(5Y)9.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
118.14% of the earnings are spent on dividend by 1AMGN. This is not a sustainable payout ratio.
The dividend of 1AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP118.14%
EPS Next 2Y5.5%
EPS Next 3Y4.56%
BIT:1AMGN (6/2/2025, 7:00:00 PM)
251.95
+12.1 (+5.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap135.46B
Analysts73.16
Price Target295.23 (17.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend7.94
Dividend Growth(5Y)9.41%
DP118.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-3.6%
PT rev (3m)-7.97%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 13.61 | ||
| P/S | 4.61 | ||
| P/FCF | 14.84 | ||
| P/OCF | 13.42 | ||
| P/B | 26.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.75 |
EPS(TTM)17.41
EY6.91%
EPS(NY)18.51
Fwd EY7.35%
FCF(TTM)16.98
FCFY6.74%
OCF(TTM)18.77
OCFY7.45%
SpS54.6
BVpS9.6
TBVpS-66.09
PEG (NY)2.29
PEG (5Y)2.42
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 | 1.36 |
F-Score6
WACC9.38%
ROIC/WACC0.98
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 Y6.33%
EPS Next 2Y5.5%
EPS Next 3Y4.56%
EPS Next 5Y4.19%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
Revenue Next Year5.99%
Revenue Next 2Y4.13%
Revenue Next 3Y3.66%
Revenue Next 5Y2.67%
EBIT growth 1Y-11.1%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year38.2%
EBIT Next 3Y10.62%
EBIT Next 5Y5.13%
FCF growth 1Y41.24%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y35.64%
OCF growth 3Y7.45%
OCF growth 5Y4.66%