AMGEN INC (AMG.DE) Stock Fundamental Analysis
FRA:AMG - US0311621009 - Common Stock
244.2 EUR
-0.85 (-0.35%)
We assign a fundamental rating of 5 out of 10 to AMG. AMG was compared to 74 industry peers in the Biotechnology industry. AMG has an excellent profitability rating, but 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.
In the past year AMG had a positive cash flow from operations.
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
With an excellent Return On Assets value of 7.53%, AMG belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
AMG's Return On Equity of 89.11% is amongst the best of the industry. AMG outperforms 98.65% of its industry peers.
AMG's Return On Invested Capital of 14.12% is amongst the best of the industry. AMG outperforms 90.54% 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 12.87%.
The 3 year average ROIC (13.04%) for AMG is below the current ROIC(14.12%), indicating increased profibility in the last year.
| 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
AMG has a Profit Margin of 18.96%. This is amongst the best in the industry. AMG outperforms 87.84% of its industry peers.
AMG's Profit Margin has declined in the last couple of years.
AMG has a better Operating Margin (31.30%) than 90.54% of its industry peers.
AMG's Operating Margin has declined in the last couple of years.
The Gross Margin of AMG (69.71%) is better than 63.51% of its industry peers.
AMG's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMG is still 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
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.
Looking at the Debt to FCF ratio, with a value of 4.94, AMG is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.24, AMG is doing worse than 71.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.45
WACC9.75%
2.3 Liquidity
AMG has a Current Ratio of 1.31. This is a normal value and indicates that AMG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.31, AMG is doing worse than 68.92% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that AMG may have some problems paying its short term obligations.
AMG's Quick ratio of 0.98 is on the low side compared to the rest of the industry. AMG is outperformed by 71.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.26% over the past year.
AMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
AMG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.88%.
AMG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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
AMG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.24% yearly.
The Revenue is expected to grow by 3.07% on average over the next years.
EPS Next Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.24%
Revenue Next Year7.6%
Revenue Next 2Y4.65%
Revenue Next 3Y4.02%
Revenue Next 5Y3.07%
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 13.05, the valuation of AMG can be described as correct.
91.89% of the companies in the same industry are more expensive than AMG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.13, AMG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.87, the valuation of AMG can be described as correct.
89.19% of the companies in the same industry are more expensive than AMG, based on the Price/Forward Earnings ratio.
AMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
83.78% 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 cheaper than 90.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.46 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
The 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)1.52
PEG (5Y)2.19
EPS Next 2Y5.64%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, 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 12.87. AMG pays more dividend than 95.95% of the companies in the same industry.
AMG's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 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 2Y5.64%
EPS Next 3Y5.13%
FRA:AMG (9/1/2025, 9:33:14 AM)
244.2
-0.85 (-0.35%)
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 Cap131.47B
Analysts72.82
Price Target274.79 (12.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend7.73
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)-0.13%
PT rev (3m)-2.05%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-8.31%
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.87 | ||
| P/S | 4.39 | ||
| P/FCF | 13.46 | ||
| P/OCF | 12.76 | ||
| P/B | 20.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.23 |
EPS(TTM)18.71
EY7.66%
EPS(NY)18.97
Fwd EY7.77%
FCF(TTM)18.14
FCFY7.43%
OCF(TTM)19.14
OCFY7.84%
SpS55.63
BVpS11.84
TBVpS-57.14
PEG (NY)1.52
PEG (5Y)2.19
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
WACC9.75%
ROIC/WACC1.45
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 Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.24%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.6%
Revenue Next 2Y4.65%
Revenue Next 3Y4.02%
Revenue Next 5Y3.07%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.97%
EBIT Next 3Y10.45%
EBIT Next 5Y5.8%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%