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 67 industry peers in the Biotechnology industry. While AMG has a great profitability rating, there are quite some concerns on its financial health. AMG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AMG was profitable.
AMG had a positive operating cash flow in the past year.
In the past 5 years AMG has always been profitable.
AMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AMG (6.64%) is better than 86.96% of its industry peers.
AMG has a better Return On Equity (95.59%) than 98.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.30%, AMG belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMG is in line with the industry average of 11.69%.
| 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 better Profit Margin (17.39%) than 88.41% of its industry peers.
In the last couple of years the Profit Margin of AMG has declined.
With an excellent Operating Margin value of 25.22%, AMG belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
AMG's Operating Margin has declined in the last couple of years.
AMG's Gross Margin of 64.07% is fine compared to the rest of the industry. AMG outperforms 60.87% 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.
AMG has less shares outstanding than it did 5 years ago.
AMG has a better debt/assets ratio than last year.
2.2 Solvency
AMG has an Altman-Z score of 1.48. This is a bad value and indicates that AMG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.48, AMG perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Debt to FCF ratio of AMG is 5.26, which is a neutral value as it means it would take AMG, 5.26 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.26, AMG belongs to the best of the industry, outperforming 82.61% 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.
Looking at the Debt to Equity ratio, with a value of 8.70, AMG is doing worse than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.18
WACC9.61%
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 71.01% of its industry peers.
A Quick Ratio of 0.88 indicates that AMG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, AMG is doing worse than 76.81% of the companies in the same industry.
| 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 4.13% yearly.
Based on estimates for the next years, AMG will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y4.04%
Revenue Next 3Y3.76%
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
With a Price/Earnings ratio of 14.30, AMG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AMG indicates a rather cheap valuation: AMG is cheaper than 89.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AMG to the average of the S&P500 Index (27.54), we can say AMG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.54, the valuation of AMG can be described as correct.
Based on the Price/Forward Earnings ratio, AMG is valued cheaper than 91.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. AMG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.54 |
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 85.51% of the companies listed in the same industry.
AMG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMG is cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.63 | ||
| EV/EBITDA | 14.68 |
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)1.92
PEG (5Y)2.39
EPS Next 2Y5.19%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
AMG has a Yearly Dividend Yield of 3.19%.
AMG's Dividend Yield is rather good when compared to the industry average which is at 13.93. AMG pays more dividend than 95.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, AMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
82.64% 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.
DP82.64%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
FRA:AMG (7/18/2025, 7:00:00 PM)
254.85
-1.5 (-0.59%)
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 Cap137.04B
Analysts72.82
Price Target275.14 (7.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend7.74
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)-1.72%
PT rev (3m)-9.08%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.54 | ||
| P/S | 4.68 | ||
| P/FCF | 14.63 | ||
| P/OCF | 13.09 | ||
| P/B | 25.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.68 |
EPS(TTM)17.82
EY6.99%
EPS(NY)18.83
Fwd EY7.39%
FCF(TTM)17.42
FCFY6.84%
OCF(TTM)19.46
OCFY7.64%
SpS54.48
BVpS9.91
TBVpS-60.92
PEG (NY)1.92
PEG (5Y)2.39
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 | 1.48 |
F-Score6
WACC9.61%
ROIC/WACC1.18
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 Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
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 2Y4.04%
Revenue Next 3Y3.76%
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%