AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - Deutsche Boerse Ag - US0311621009 - Common Stock - Currency: EUR
Overall AMG gets a fundamental rating of 5 out of 10. We evaluated AMG against 68 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years AMG has always been profitable.
In the past 5 years AMG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AMG (7.53%) is better than 89.04% of its industry peers.
The Return On Equity of AMG (89.11%) is better than 98.63% of its industry peers.
The Return On Invested Capital of AMG (14.12%) is better than 91.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMG is in line with the industry average of 12.48%.
The last Return On Invested Capital (14.12%) for AMG is above the 3 year average (13.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 89.11% | ||
| ROIC | 14.12% |
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
The Profit Margin of AMG (18.96%) is better than 89.04% 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 31.30%, AMG belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
AMG's Operating Margin has declined in the last couple of years.
AMG's Gross Margin of 69.71% is fine compared to the rest of the industry. AMG outperforms 65.75% of its industry peers.
In the last couple of years the Gross Margin of AMG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.3% | ||
| PM (TTM) | 18.96% | ||
| GM | 69.71% |
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
AMG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AMG has been increased compared to 1 year ago.
The number of shares outstanding for AMG has been reduced compared to 5 years ago.
The debt/assets ratio for AMG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AMG is 4.94, which is a neutral value as it means it would take AMG, 4.94 years of fcf income to pay off all of its debts.
AMG's Debt to FCF ratio of 4.94 is amongst the best of the industry. AMG outperforms 80.82% of its industry peers.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMG has dependencies on debt financing.
The Debt to Equity ratio of AMG (7.24) is worse than 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.31 indicates that AMG should not have too much problems paying its short term obligations.
AMG's Current ratio of 1.31 is on the low side compared to the rest of the industry. AMG is outperformed by 69.86% of its industry peers.
AMG has a Quick Ratio of 1.31. This is a bad value and indicates that AMG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, AMG is doing worse than 72.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
AMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.26%, which is quite good.
AMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
The Revenue has grown by 12.88% in the past year. This is quite good.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)17.26%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%21.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
3.2 Future
Based on estimates for the next years, AMG will show a small growth in Earnings Per Share. The EPS will grow by 4.13% on average per year.
AMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.13%
Revenue Next Year6.58%
Revenue Next 2Y4.11%
Revenue Next 3Y3.72%
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
Based on the Price/Earnings ratio of 13.11, the valuation of AMG can be described as correct.
Based on the Price/Earnings ratio, AMG is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.
AMG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 13.04, AMG is valued correctly.
Based on the Price/Forward Earnings ratio, AMG is valued cheaper than 94.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMG to the average of the S&P500 Index (34.09), we can say AMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 13.04 |
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.
Based on the Price/Free Cash Flow ratio, AMG is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.51 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
AMG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)2.2
EPS Next 2Y5.19%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
AMG has a Yearly Dividend Yield of 3.34%.
Compared to an average industry Dividend Yield of 15.41, AMG pays a better dividend. On top of this AMG pays more dividend than 97.26% of the companies listed in the same industry.
AMG's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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 36.49% of its income as dividend. This is a sustainable payout ratio.
AMG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
FRA:AMG (7/24/2025, 1:22:22 PM)
245.5
+2.75 (+1.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.64%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap132.01B
Analysts72.82
Price Target273.75 (11.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend7.74
Dividend Growth(5Y)9.41%
DP36.49%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.69%
Min EPS beat(2)11.64%
Max EPS beat(2)11.73%
EPS beat(4)4
Avg EPS beat(4)8.21%
Min EPS beat(4)2.49%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.35%
EPS beat(12)10
Avg EPS beat(12)3.9%
EPS beat(16)14
Avg EPS beat(16)4.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.68%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.9%
Revenue beat(16)4
Avg Revenue beat(16)-0.92%
PT rev (1m)-1.84%
PT rev (3m)-2.43%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 13.04 | ||
| P/S | 4.4 | ||
| P/FCF | 13.51 | ||
| P/OCF | 12.8 | ||
| P/B | 20.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.22 |
EPS(TTM)18.72
EY7.63%
EPS(NY)18.83
Fwd EY7.67%
FCF(TTM)18.18
FCFY7.4%
OCF(TTM)19.18
OCFY7.81%
SpS55.75
BVpS11.86
TBVpS-57.25
PEG (NY)1.76
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 89.11% | ||
| ROCE | 16.21% | ||
| ROIC | 14.12% | ||
| ROICexc | 16.03% | ||
| ROICexgc | 59.12% | ||
| OM | 31.3% | ||
| PM (TTM) | 18.96% | ||
| GM | 69.71% | ||
| FCFM | 32.61% |
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.72% | ||
| Profit Quality | 172.01% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | N/A |
F-Score8
WACC9.65%
ROIC/WACC1.46
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)17.26%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%21.13%
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.58%
Revenue Next 2Y4.11%
Revenue Next 3Y3.72%
Revenue Next 5Y2.73%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.97%
EBIT Next 3Y10.45%
EBIT Next 5Y5.07%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%