AMGEN INC (AMGN)
US0311621009 - Common Stock
We assign a fundamental rating of 6 out of 10 to AMGN. AMGN was compared to 609 industry peers in the Biotechnology industry. AMGN scores excellent on profitability, but there are some minor concerns on its financial health. AMGN has a correct valuation and a medium growth rate. AMGN also has an excellent dividend rating. This makes AMGN very considerable for dividend investing!
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.
Each year in the past 5 years AMGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AMGN (8.36%) is better than 96.83% of its industry peers.
Looking at the Return On Equity, with a value of 98.82%, AMGN belongs to the top of the industry, outperforming 99.67% of the companies in the same industry.
AMGN's Return On Invested Capital of 10.97% is amongst the best of the industry. AMGN outperforms 96.50% of its industry peers.
AMGN had an Average Return On Invested Capital over the past 3 years of 16.82%. This is above the industry average of 12.73%.
The 3 year average ROIC (16.82%) for AMGN is well above the current ROIC(10.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 98.82% | ||
| ROIC | 10.97% |
ROA(3y)10.41%
ROA(5y)11.4%
ROE(3y)114.71%
ROE(5y)98.47%
ROIC(3y)16.82%
ROIC(5y)17.33%
1.3 Margins
AMGN's Profit Margin of 28.20% is amongst the best of the industry. AMGN outperforms 98.00% of its industry peers.
AMGN's Profit Margin has improved in the last couple of years.
AMGN's Operating Margin of 33.95% is amongst the best of the industry. AMGN outperforms 98.00% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN's Gross Margin of 73.74% is amongst the best of the industry. AMGN outperforms 83.83% of its industry peers.
AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.95% | ||
| PM (TTM) | 28.2% | ||
| GM | 73.74% |
OM growth 3Y-2.56%
OM growth 5Y-3.18%
PM growth 3Y-9.49%
PM growth 5Y23.51%
GM growth 3Y-2.39%
GM growth 5Y-1.64%
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.
AMGN has less shares outstanding than it did 1 year ago.
AMGN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMGN has a worse debt to assets ratio.
2.2 Solvency
AMGN has an Altman-Z score of 1.70. This is a bad value and indicates that AMGN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.70, AMGN is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
The Debt to FCF ratio of AMGN is 6.45, which is on the high side as it means it would take AMGN, 6.45 years of fcf income to pay off all of its debts.
AMGN's Debt to FCF ratio of 6.45 is amongst the best of the industry. AMGN outperforms 94.33% of its industry peers.
AMGN has a Debt/Equity ratio of 7.71. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.71, AMGN is not doing good in the industry: 87.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.71 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.02
WACC10.73%
2.3 Liquidity
AMGN has a Current Ratio of 2.86. This indicates that AMGN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.86, AMGN is not doing good in the industry: 70.67% of the companies in the same industry are doing better.
AMGN has a Quick Ratio of 2.56. This indicates that AMGN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AMGN (2.56) is worse than 72.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
AMGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.39%.
Measured over the past 5 years, AMGN shows a small growth in Earnings Per Share. The EPS has been growing by 7.06% on average per year.
The Revenue has been growing slightly by 1.91% in the past year.
Measured over the past years, AMGN shows a small growth in Revenue. The Revenue has been growing by 2.87% on average per year.
EPS 1Y (TTM)0.39%
EPS 3Y6.05%
EPS 5Y7.06%
EPS growth Q2Q5.53%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.06%
Revenue growth 5Y2.87%
Revenue growth Q2Q3.77%
3.2 Future
AMGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.11% yearly.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
EPS Next Y7.09%
EPS Next 2Y7.23%
EPS Next 3Y7.05%
EPS Next 5Y5.11%
Revenue Next Year7.2%
Revenue Next 2Y11.28%
Revenue Next 3Y8.42%
Revenue Next 5Y5.31%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AMGN is valuated correctly with a Price/Earnings ratio of 14.93.
Compared to the rest of the industry, the Price/Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 97.50% of the companies listed in the same industry.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 24.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.23, which indicates a correct valuation of AMGN.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaper than 97.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMGN to the average of the S&P500 Index (20.22), we can say AMGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
96.17% 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 cheaper than 97.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMGN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)2.12
EPS Next 2Y7.23%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 33.94, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.33% of the companies listed in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 10.76%!
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)10.76%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
58.90% of the earnings are spent on dividend by AMGN. This is a bit on the high side, but may be sustainable.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.9%
EPS Next 2Y7.23%
EPS Next 3Y7.05%
AMGEN INC
NASDAQ:AMGN (12/8/2023, 7:00:01 PM)
After market: 269.12 0 (0%)269.12
-2.19 (-0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap144.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 98.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.95% | ||
| PM (TTM) | 28.2% | ||
| GM | 73.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.39%
EPS 3Y6.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y