AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to AMG. AMG was compared to 71 industry peers in the Biotechnology industry. While AMG has a great profitability rating, there are some minor concerns on its financial health. AMG has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AMG had positive earnings in the past year.
In the past year AMG had a positive cash flow from operations.
AMG had positive earnings in each of the past 5 years.
Each year in the past 5 years AMG had a positive operating cash flow.
1.2 Ratios
AMG's Return On Assets of 4.45% is amongst the best of the industry. AMG outperforms 85.92% of its industry peers.
AMG has a better Return On Equity (69.59%) than 97.18% of its industry peers.
AMG has a Return On Invested Capital of 9.20%. This is amongst the best in the industry. AMG outperforms 84.51% of its industry peers.
AMG had an Average Return On Invested Capital over the past 3 years of 12.03%. This is below the industry average of 14.15%.
| 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
Looking at the Profit Margin, with a value of 12.24%, AMG belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
AMG's Profit Margin has declined in the last couple of years.
AMG has a Operating Margin of 21.71%. This is amongst the best in the industry. AMG outperforms 84.51% of its industry peers.
AMG's Operating Margin has declined in the last couple of years.
AMG's Gross Margin of 61.53% is fine compared to the rest of the industry. AMG outperforms 60.56% of its industry peers.
AMG's Gross Margin has declined in the last couple of years.
| 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
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 1.37. This is a bad value and indicates that AMG is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.37, AMG is doing good in the industry, outperforming 63.38% of the companies in the same industry.
The Debt to FCF ratio of AMG is 5.78, which is a neutral value as it means it would take AMG, 5.78 years of fcf income to pay off all of its debts.
AMG has a better Debt to FCF ratio (5.78) than 84.51% of its industry peers.
AMG has a Debt/Equity ratio of 9.62. This is a high value indicating a heavy dependency on external financing.
AMG has a Debt to Equity ratio of 9.62. This is in the lower half of the industry: AMG underperforms 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.93
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.26 indicates that AMG should not have too much problems paying its short term obligations.
AMG has a worse Current ratio (1.26) than 66.20% of its industry peers.
A Quick Ratio of 0.95 indicates that AMG may have some problems paying its short term obligations.
AMG's Quick ratio of 0.95 is on the low side compared to the rest of the industry. AMG is outperformed by 64.79% 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.
Looking at the last year, AMG shows a quite strong growth in Revenue. The Revenue has grown by 18.57% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.19% 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 2.67% yearly.
EPS Next Y6.19%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
EPS Next 5Y4.19%
Revenue Next Year5.82%
Revenue Next 2Y4.08%
Revenue Next 3Y3.61%
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.
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
With a Price/Earnings ratio of 14.02, AMG is valued correctly.
AMG's Price/Earnings ratio is rather cheap when compared to the industry. AMG is cheaper than 90.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, AMG is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.20, AMG is valued correctly.
Based on the Price/Forward Earnings ratio, AMG is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. AMG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 13.2 |
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 83.10% of the companies listed in the same industry.
88.73% of the companies in the same industry are more expensive than AMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.37 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AMG may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)2.35
EPS Next 2Y5.14%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
AMG has a Yearly Dividend Yield of 3.35%.
Compared to an average industry Dividend Yield of 9.62, AMG pays a better dividend. On top of this AMG pays more dividend than 94.37% of the companies listed in the same industry.
AMG's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
118.14% of the earnings are spent on dividend by AMG. This is not a sustainable payout ratio.
AMG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP118.14%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
FRA:AMG (5/2/2025, 7:00:00 PM)
244.3
-9.9 (-3.89%)
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 Cap131.35B
Analysts72.82
Price Target285.48 (16.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend7.95
Dividend Growth(5Y)9.41%
DP118.14%
Div Incr Years2
Div Non Decr Years2
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)-7.68%
PT rev (3m)-11.03%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 13.2 | ||
| P/S | 4.47 | ||
| P/FCF | 14.37 | ||
| P/OCF | 13 | ||
| P/B | 25.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.84 |
EPS(TTM)17.43
EY7.13%
EPS(NY)18.51
Fwd EY7.58%
FCF(TTM)17
FCFY6.96%
OCF(TTM)18.79
OCFY7.69%
SpS54.66
BVpS9.61
TBVpS-66.17
PEG (NY)2.26
PEG (5Y)2.35
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 | 1.37 |
F-Score6
WACC9.91%
ROIC/WACC0.93
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 Y6.19%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
EPS Next 5Y4.19%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
Revenue Next Year5.82%
Revenue Next 2Y4.08%
Revenue Next 3Y3.61%
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%