AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
AMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Biotechnology industry. While AMG belongs to the best of the industry regarding profitability, there are concerns on its financial health. AMG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AMG had positive earnings in the past year.
AMG had a positive operating cash flow in the past year.
Each year in the past 5 years AMG has been profitable.
In the past 5 years AMG always reported a positive cash flow from operatings.
1.2 Ratios
AMG has a Return On Assets of 6.64%. This is amongst the best in the industry. AMG outperforms 84.93% of its industry peers.
With an excellent Return On Equity value of 95.59%, AMG belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
The Return On Invested Capital of AMG (11.30%) is better than 87.67% of its industry peers.
AMG had an Average Return On Invested Capital over the past 3 years of 13.04%. This is in line with the industry average of 12.94%.
| 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
AMG has a Profit Margin of 17.39%. This is amongst the best in the industry. AMG outperforms 86.30% of its industry peers.
AMG's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.22%, AMG belongs to the best of the industry, outperforming 84.93% of the companies in the same industry.
AMG's Operating Margin has declined in the last couple of years.
The Gross Margin of AMG (64.07%) is better than 60.27% of its industry peers.
In the last couple of years the Gross Margin of AMG 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), AMG is creating some value.
AMG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMG has been reduced compared to 5 years ago.
Compared to 1 year ago, AMG has an improved debt to assets ratio.
2.2 Solvency
AMG has an Altman-Z score of 1.45. This is a bad value and indicates that AMG is not financially healthy and even has some risk of bankruptcy.
AMG has a Altman-Z score (1.45) which is in line with its industry peers.
AMG has a debt to FCF ratio of 5.26. This is a neutral value as AMG would need 5.26 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.26, AMG is doing good in the industry, outperforming 79.45% of the companies in the same industry.
AMG has a Debt/Equity ratio of 8.70. This is a high value indicating a heavy dependency on external financing.
AMG has a worse Debt to Equity ratio (8.70) than 71.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.48
WACC7.63%
2.3 Liquidity
AMG has a Current Ratio of 1.17. This is a normal value and indicates that AMG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AMG (1.17) is worse than 68.49% of its industry peers.
AMG has a Quick Ratio of 1.17. This is a bad value and indicates that AMG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMG (0.88) is worse than 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
AMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, which is quite good.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
Looking at the last year, AMG shows a quite strong growth in Revenue. The Revenue has grown by 15.56% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
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.
AMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.82%
Revenue Next 5Y2.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AMG is valuated correctly with a Price/Earnings ratio of 13.93.
89.04% of the companies in the same industry are more expensive than AMG, based on the Price/Earnings ratio.
AMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.21, the valuation of AMG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 90.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. AMG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
83.56% of the companies in the same industry are more expensive than AMG, based on the Enterprise Value to EBITDA ratio.
AMG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMG is cheaper than 86.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.25 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMG does not grow enough to justify the current Price/Earnings ratio.
AMG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)2.33
EPS Next 2Y5.12%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, AMG has a reasonable but not impressive dividend return.
AMG's Dividend Yield is rather good when compared to the industry average which is at 10.33. AMG pays more dividend than 94.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, AMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
The dividend of AMG is nicely growing with an annual growth rate of 9.41%!
Dividend Growth(5Y)9.41%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AMG pays out 82.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AMG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.64%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
FRA:AMG (6/19/2025, 7:00:00 PM)
252.05
-0.15 (-0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap135.53B
Analysts72.82
Price Target279.94 (11.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend7.83
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-0.22%
PT rev (3m)-9.47%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 13.21 | ||
| P/S | 4.56 | ||
| P/FCF | 14.25 | ||
| P/OCF | 12.76 | ||
| P/B | 25.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.39 |
EPS(TTM)18.09
EY7.18%
EPS(NY)19.08
Fwd EY7.57%
FCF(TTM)17.69
FCFY7.02%
OCF(TTM)19.75
OCFY7.84%
SpS55.29
BVpS10.06
TBVpS-61.83
PEG (NY)1.95
PEG (5Y)2.33
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 | 1.45 |
F-Score6
WACC7.63%
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 Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
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 3Y3.82%
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%