AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
Taking everything into account, AMG scores 5 out of 10 in our fundamental rating. AMG was compared to 71 industry peers in the Biotechnology industry. AMG has an excellent profitability rating, but 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
In the past year AMG was profitable.
AMG had a positive operating cash flow in the past year.
Each year in the past 5 years AMG has been profitable.
AMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.64%, AMG belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
The Return On Equity of AMG (95.59%) is better than 98.59% of its industry peers.
AMG has a Return On Invested Capital of 11.30%. This is amongst the best in the industry. AMG outperforms 87.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMG 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)12.03%
ROIC(5y)13.58%
1.3 Margins
The Profit Margin of AMG (17.39%) is better than 85.92% of its industry peers.
AMG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.22%, AMG belongs to the top of the industry, outperforming 84.51% 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 63.38% 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-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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMG is creating some value.
The number of shares outstanding for AMG has been increased compared to 1 year ago.
AMG has less shares outstanding than it did 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 1.38. 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 (1.38) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.26, AMG belongs to the top of the industry, outperforming 83.10% 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.
With a Debt to Equity ratio value of 8.70, AMG is not doing good in the industry: 70.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.15
WACC9.84%
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.
AMG's Current ratio of 1.17 is on the low side compared to the rest of the industry. AMG is outperformed by 67.61% of its industry peers.
A Quick Ratio of 0.88 indicates that AMG may have some problems paying its short term obligations.
AMG has a worse Quick ratio (0.88) than 71.83% 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.
Measured over the past 5 years, AMG shows a small growth in Earnings Per Share. The EPS has been growing by 5.97% on average per year.
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
AMG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.19% yearly.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.19%
Revenue Next Year6.24%
Revenue Next 2Y4.04%
Revenue Next 3Y3.89%
Revenue Next 5Y2.67%
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 13.03.
Compared to the rest of the industry, the Price/Earnings ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 90.14% of the companies listed in the same industry.
AMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 12.35, the valuation of AMG can be described as correct.
Based on the Price/Forward Earnings ratio, AMG is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, AMG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 81.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AMG is valued cheaper than 87.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 13.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)2.18
EPS Next 2Y5.12%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
AMG has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
AMG's Dividend Yield is rather good when compared to the industry average which is at 8.24. AMG pays more dividend than 95.77% of the companies in the same industry.
AMG's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
On average, the dividend of AMG grows each year by 9.41%, which is quite nice.
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 (5/23/2025, 7:00:00 PM)
239.45
+0.35 (+0.15%)
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 Cap128.75B
Analysts72.82
Price Target280.55 (17.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend7.97
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)-7.29%
PT rev (3m)-8.45%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 12.35 | ||
| P/S | 4.26 | ||
| P/FCF | 13.33 | ||
| P/OCF | 11.93 | ||
| P/B | 23.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.68 |
EPS(TTM)18.37
EY7.67%
EPS(NY)19.38
Fwd EY8.09%
FCF(TTM)17.96
FCFY7.5%
OCF(TTM)20.06
OCFY8.38%
SpS56.16
BVpS10.21
TBVpS-62.8
PEG (NY)1.82
PEG (5Y)2.18
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)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 Turnover0.38
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 | 1.38 |
F-Score6
WACC9.84%
ROIC/WACC1.15
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 5Y4.19%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.24%
Revenue Next 2Y4.04%
Revenue Next 3Y3.89%
Revenue Next 5Y2.67%
EBIT growth 1Y22.01%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year37.48%
EBIT Next 3Y10.41%
EBIT Next 5Y5.13%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%