AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
298.43 USD
+6.43 (+2.2%)
298.445 USD
+0.01 (+0.01%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 534 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are concerns on its financial health. AMGN has a correct valuation and a medium growth rate. AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AMGN was profitable.
In the past year AMGN had a positive cash flow from operations.
Each year in the past 5 years AMGN has been profitable.
In the past 5 years AMGN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AMGN (7.53%) is better than 92.32% of its industry peers.
AMGN has a better Return On Equity (89.11%) than 99.06% of its industry peers.
With an excellent Return On Invested Capital value of 14.12%, AMGN belongs to the best of the industry, outperforming 95.88% of the companies in the same industry.
AMGN had an Average Return On Invested Capital over the past 3 years of 13.04%. This is below the industry average of 15.51%.
The last Return On Invested Capital (14.12%) for AMGN 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
AMGN's Profit Margin of 18.96% is amongst the best of the industry. AMGN outperforms 94.01% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 31.30%. This is amongst the best in the industry. AMGN outperforms 97.19% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a Gross Margin of 69.71%. This is amongst the best in the industry. AMGN outperforms 81.27% of its industry peers.
AMGN'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
AMGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AMGN has more shares outstanding
The number of shares outstanding for AMGN has been reduced compared to 5 years ago.
The debt/assets ratio for AMGN has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AMGN is 4.94, which is a neutral value as it means it would take AMGN, 4.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AMGN (4.94) is better than 92.32% of its industry peers.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN's Debt to Equity ratio of 7.24 is on the low side compared to the rest of the industry. AMGN is outperformed by 82.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.69
WACC8.38%
2.3 Liquidity
AMGN has a Current Ratio of 1.31. 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 1.31, AMGN is doing worse than 83.90% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that AMGN may have some problems paying its short term obligations.
AMGN's Quick ratio of 0.98 is on the low side compared to the rest of the industry. AMGN is outperformed by 86.70% 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.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 12.88% in the last year.
AMGN 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
Based on estimates for the next years, AMGN will show a small growth in Earnings Per Share. The EPS will grow by 4.13% on average per year.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y8.41%
EPS Next 2Y5.37%
EPS Next 3Y4.89%
EPS Next 5Y4.13%
Revenue Next Year7.5%
Revenue Next 2Y4.61%
Revenue Next 3Y3.97%
Revenue Next 5Y3.12%
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
The Price/Earnings ratio is 13.68, which indicates a correct valuation of AMGN.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 97.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, AMGN is valued a bit cheaper.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 13.56.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.88% of the companies in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
95.51% of the companies in the same industry are more expensive than AMGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaply inside the industry as 96.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)2.29
EPS Next 2Y5.37%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.26%.
Compared to an average industry Dividend Yield of 89.82, AMGN pays a better dividend. On top of this AMGN pays more dividend than 99.06% of the companies listed in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 9.41%!
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
36.49% of the earnings are spent on dividend by AMGN. This is a low number and sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.37%
EPS Next 3Y4.89%
298.43
+6.43 (+2.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change-1.09%
Ins Owners0.06%
Ins Owner Change1.83%
Market Cap160.66B
Revenue(TTM)34.92B
Net Income(TTM)6.62B
Analysts72
Price Target319.63 (7.1%)
Short Float %2.14%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP36.49%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-0.04%
PT rev (3m)0.18%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-6.78%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 13.56 | ||
| P/S | 4.6 | ||
| P/FCF | 14.11 | ||
| P/OCF | 13.37 | ||
| P/B | 21.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.64 |
EPS(TTM)21.81
EY7.31%
EPS(NY)22.01
Fwd EY7.37%
FCF(TTM)21.15
FCFY7.09%
OCF(TTM)22.31
OCFY7.48%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.63
PEG (5Y)2.29
Graham Number82.28
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%
ROICexgc growth 3Y3.26%
ROICexgc 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
WACC8.38%
ROIC/WACC1.69
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 Y8.41%
EPS Next 2Y5.37%
EPS Next 3Y4.89%
EPS Next 5Y4.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.5%
Revenue Next 2Y4.61%
Revenue Next 3Y3.97%
Revenue Next 5Y3.12%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year39.98%
EBIT Next 3Y10.33%
EBIT Next 5Y5.65%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%
AMGEN INC / AMGN FAQ
Can you provide the ChartMill fundamental rating for AMGEN INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMGN.
Can you provide the valuation status for AMGEN INC?
ChartMill assigns a valuation rating of 6 / 10 to AMGEN INC (AMGN). This can be considered as Fairly Valued.
What is the profitability of AMGN stock?
AMGEN INC (AMGN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMGEN INC (AMGN) stock?
The Price/Earnings (PE) ratio for AMGEN INC (AMGN) is 13.68 and the Price/Book (PB) ratio is 21.63.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.