AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
Overall AMGN gets a fundamental rating of 5 out of 10. We evaluated AMGN against 555 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are some minor concerns on its financial health. AMGN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AMGN had positive earnings in the past year.
AMGN had a positive operating cash flow in the past year.
In the past 5 years AMGN has always been profitable.
Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.64%, AMGN belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 95.59%, AMGN belongs to the top of the industry, outperforming 99.10% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.30%, AMGN belongs to the best of the industry, outperforming 95.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMGN is in line with the industry average of 14.78%.
| 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
With an excellent Profit Margin value of 17.39%, AMGN belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
With an excellent Operating Margin value of 25.22%, AMGN belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 64.07%, AMGN is doing good in the industry, outperforming 79.82% of the companies in the same industry.
AMGN's Gross Margin has declined in the last couple of years.
| 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), AMGN is creating some value.
The number of shares outstanding for AMGN has been increased compared to 1 year ago.
The number of shares outstanding for AMGN has been reduced compared to 5 years ago.
Compared to 1 year ago, AMGN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, AMGN is in the better half of the industry, outperforming 67.75% of the companies in the same industry.
The Debt to FCF ratio of AMGN is 5.26, which is a neutral value as it means it would take AMGN, 5.26 years of fcf income to pay off all of its debts.
AMGN has a Debt to FCF ratio of 5.26. This is amongst the best in the industry. AMGN outperforms 92.79% of its industry peers.
A Debt/Equity ratio of 8.70 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a worse Debt to Equity ratio (8.70) than 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.19
WACC9.51%
2.3 Liquidity
AMGN has a Current Ratio of 1.17. This is a normal value and indicates that AMGN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.17, AMGN is doing worse than 85.59% of the companies in the same industry.
AMGN has a Quick Ratio of 1.17. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, AMGN is not doing good in the industry: 88.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, which is quite good.
AMGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.97% yearly.
Looking at the last year, AMGN 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
The Earnings Per Share is expected to grow by 4.13% on average over the next years.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y7.5%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.83%
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.
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
Based on the Price/Earnings ratio of 14.37, the valuation of AMGN can be described as correct.
95.68% of the companies in the same industry are more expensive than AMGN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AMGN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.61, AMGN is valued correctly.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 94.59% of the companies in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 95.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.69 | ||
| EV/EBITDA | 14.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AMGN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)2.41
EPS Next 2Y5.16%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
AMGN's Dividend Yield is rather good when compared to the industry average which is at 96.38. AMGN pays more dividend than 98.92% of the companies in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
AMGN has been paying a dividend for at least 10 years, so it has a reliable track record.
AMGN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.41%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
82.64% of the earnings are spent on dividend by AMGN. This is not a sustainable payout ratio.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.64%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
298.24
+1.39 (+0.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner Change3.04%
Ins Owners0.06%
Ins Owner Change-0.29%
Market Cap160.37B
Analysts72.82
Price Target320.26 (7.38%)
Short Float %2.47%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)0.01%
PT rev (3m)-1.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 13.61 | ||
| P/S | 4.7 | ||
| P/FCF | 14.69 | ||
| P/OCF | 13.15 | ||
| P/B | 25.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.73 |
EPS(TTM)20.76
EY6.96%
EPS(NY)21.92
Fwd EY7.35%
FCF(TTM)20.3
FCFY6.81%
OCF(TTM)22.67
OCFY7.6%
SpS63.47
BVpS11.54
TBVpS-70.97
PEG (NY)1.92
PEG (5Y)2.41
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
WACC9.51%
ROIC/WACC1.19
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 Y7.5%
EPS Next 2Y5.16%
EPS Next 3Y5.12%
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 2Y3.99%
Revenue Next 3Y3.83%
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%