AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
297.89 USD
+0.49 (+0.16%)
300.624 USD
+2.73 (+0.92%)
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 536 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some concerns on its financial health. AMGN is valued quite cheap, while showing a decent growth score. This is a good combination! AMGN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AMGN had positive earnings in the past year.
In the past year AMGN had a positive cash flow from operations.
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
With an excellent Return On Assets value of 7.53%, AMGN belongs to the best of the industry, outperforming 92.35% of the companies in the same industry.
AMGN has a Return On Equity of 89.11%. This is amongst the best in the industry. AMGN outperforms 99.07% of its industry peers.
The Return On Invested Capital of AMGN (14.12%) is better than 95.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is below the industry average of 16.17%.
The 3 year average ROIC (13.04%) for AMGN 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
AMGN has a better Profit Margin (18.96%) than 94.03% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 31.30%, AMGN belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
AMGN's Operating Margin has declined in the last couple of years.
AMGN has a better Gross Margin (69.71%) than 81.16% of its industry peers.
In the last couple of years the Gross Margin of AMGN 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
AMGN 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 AMGN has been increased compared to 1 year ago.
Compared to 5 years ago, AMGN has less shares outstanding
The debt/assets ratio for AMGN has been reduced compared to a year ago.
2.2 Solvency
AMGN has a debt to FCF ratio of 4.94. This is a neutral value as AMGN would need 4.94 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.94, AMGN belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMGN has dependencies on debt financing.
AMGN has a Debt to Equity ratio of 7.24. This is amonst the worse of the industry: AMGN underperforms 82.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC9.93%
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.
AMGN's Current ratio of 1.31 is on the low side compared to the rest of the industry. AMGN is outperformed by 83.58% of its industry peers.
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 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.26%, which is quite good.
The Earnings Per Share has been growing slightly by 5.97% on average over the past years.
The Revenue has grown by 12.88% in the past year. This is quite good.
Measured over the past years, AMGN shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
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
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.40% yearly.
The Revenue is expected to grow by 3.19% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
EPS Next 5Y4.4%
Revenue Next Year7.54%
Revenue Next 2Y4.58%
Revenue Next 3Y3.92%
Revenue Next 5Y3.19%
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 13.66, the valuation of AMGN can be described as correct.
96.64% 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 27.86, AMGN is valued rather cheaply.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 13.52.
95.90% of the companies in the same industry are more expensive than AMGN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 97.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
AMGN's 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)1.62
PEG (5Y)2.29
EPS Next 2Y5.44%
EPS Next 3Y4.87%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 170.03, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 9.41%!
AMGN has paid a dividend for at least 10 years, which is 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
AMGN pays out 36.49% of its income as dividend. This is a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
297.89
+0.49 (+0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change1.34%
Ins Owners0.06%
Ins Owner Change1.07%
Market Cap160.37B
Analysts72
Price Target319.76 (7.34%)
Short Float %2.46%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)-0.16%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 13.52 | ||
| P/S | 4.59 | ||
| P/FCF | 14.09 | ||
| P/OCF | 13.35 | ||
| P/B | 21.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.61 |
EPS(TTM)21.81
EY7.32%
EPS(NY)22.04
Fwd EY7.4%
FCF(TTM)21.15
FCFY7.1%
OCF(TTM)22.31
OCFY7.49%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.62
PEG (5Y)2.29
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
WACC9.93%
ROIC/WACC1.42
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 Y8.45%
EPS Next 2Y5.44%
EPS Next 3Y4.87%
EPS Next 5Y4.4%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.54%
Revenue Next 2Y4.58%
Revenue Next 3Y3.92%
Revenue Next 5Y3.19%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year39.98%
EBIT Next 3Y10.33%
EBIT Next 5Y5.82%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%