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 568 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 valuation in line with the averages, but it does not seem to be growing.
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.
AMGN had positive earnings in each of the past 5 years.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMGN's Return On Assets of 4.45% is amongst the best of the industry. AMGN outperforms 93.66% of its industry peers.
With an excellent Return On Equity value of 69.59%, AMGN belongs to the best of the industry, outperforming 99.30% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.20%, AMGN belongs to the best of the industry, outperforming 95.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMGN is below the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROIC | 9.2% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
1.3 Margins
AMGN's Profit Margin of 12.24% is amongst the best of the industry. AMGN outperforms 95.07% of its industry peers.
In the last couple of years the Profit Margin of AMGN has declined.
AMGN has a Operating Margin of 21.71%. This is amongst the best in the industry. AMGN outperforms 96.30% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
Looking at the Gross Margin, with a value of 61.53%, AMGN is in the better half of the industry, outperforming 78.17% of the companies in the same industry.
In the last couple of years the Gross Margin of AMGN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% |
OM growth 3Y-14.87%
OM growth 5Y-12.2%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
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.
AMGN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMGN has less shares outstanding
Compared to 1 year ago, AMGN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
AMGN has a better Altman-Z score (1.32) than 71.13% of its industry peers.
The Debt to FCF ratio of AMGN is 5.78, which is a neutral value as it means it would take AMGN, 5.78 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.78, AMGN belongs to the best of the industry, outperforming 93.13% of the companies in the same industry.
AMGN has a Debt/Equity ratio of 9.62. This is a high value indicating a heavy dependency on external financing.
AMGN has a Debt to Equity ratio of 9.62. This is amonst the worse of the industry: AMGN underperforms 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.91
WACC10.06%
2.3 Liquidity
A Current Ratio of 1.26 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN has a Current ratio of 1.26. This is amonst the worse of the industry: AMGN underperforms 84.33% of its industry peers.
A Quick Ratio of 0.95 indicates that AMGN may have some problems paying its short term obligations.
The Quick ratio of AMGN (0.95) is worse than 88.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
AMGN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.27%.
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 18.57% 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)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
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 4.19% on average per year.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y6.19%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
EPS Next 5Y4.19%
Revenue Next Year5.99%
Revenue Next 2Y4.13%
Revenue Next 3Y3.66%
Revenue Next 5Y2.67%
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 13.81, AMGN is valued correctly.
Based on the Price/Earnings ratio, AMGN is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, AMGN is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.00, AMGN is valued correctly.
95.95% 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 21.32, AMGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.60% of the companies in the same industry.
AMGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMGN is cheaper than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 15.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)2.31
EPS Next 2Y5.14%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.43%.
Compared to an average industry Dividend Yield of 6.13, AMGN pays a better dividend. On top of this AMGN pays more dividend than 99.12% of the companies listed in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.41%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
118.14% 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.
DP118.14%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
273.68
-3.61 (-1.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner Change0.87%
Ins Owners0.07%
Ins Owner Change-9.86%
Market Cap147.14B
Analysts73.16
Price Target326.05 (19.14%)
Short Float %3.02%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP118.14%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.73%
Min EPS beat(2)2.49%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-2.66%
Max EPS beat(4)6.97%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)10
Avg EPS beat(12)2.41%
EPS beat(16)13
Avg EPS beat(16)2.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.43%
PT rev (1m)0.25%
PT rev (3m)-1.27%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 13 | ||
| P/S | 4.4 | ||
| P/FCF | 14.16 | ||
| P/OCF | 12.81 | ||
| P/B | 25.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.35 |
EPS(TTM)19.82
EY7.24%
EPS(NY)21.05
Fwd EY7.69%
FCF(TTM)19.33
FCFY7.06%
OCF(TTM)21.37
OCFY7.81%
SpS62.17
BVpS10.93
TBVpS-75.25
PEG (NY)2.23
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 69.59% | ||
| ROCE | 10.56% | ||
| ROIC | 9.2% | ||
| ROICexc | 11.14% | ||
| ROICexgc | 60.62% | ||
| OM | 21.71% | ||
| PM (TTM) | 12.24% | ||
| GM | 61.53% | ||
| FCFM | 31.1% |
ROA(3y)7.14%
ROA(5y)8.52%
ROE(3y)118.78%
ROE(5y)104.3%
ROIC(3y)12.03%
ROIC(5y)13.58%
ROICexc(3y)14.54%
ROICexc(5y)16.53%
ROICexgc(3y)69.08%
ROICexgc(5y)73.09%
ROCE(3y)13.81%
ROCE(5y)15.58%
ROICexcg growth 3Y-6.12%
ROICexcg growth 5Y-22.74%
ROICexc growth 3Y-16.97%
ROICexc growth 5Y-12.97%
OM growth 3Y-14.87%
OM growth 5Y-12.2%
PM growth 3Y-18.6%
PM growth 5Y-18.28%
GM growth 3Y-6.45%
GM growth 5Y-5.43%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.62 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 19.6% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 89.42% | ||
| Profit Quality | 254.13% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.32 |
F-Score6
WACC10.06%
ROIC/WACC0.91
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)6.27%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%12.74%
EPS Next Y6.19%
EPS Next 2Y5.14%
EPS Next 3Y4.73%
EPS Next 5Y4.19%
Revenue 1Y (TTM)18.57%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%10.86%
Revenue Next Year5.99%
Revenue Next 2Y4.13%
Revenue Next 3Y3.66%
Revenue Next 5Y2.67%
EBIT growth 1Y-11.1%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year38.2%
EBIT Next 3Y10.62%
EBIT Next 5Y5.13%
FCF growth 1Y41.24%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y35.64%
OCF growth 3Y7.45%
OCF growth 5Y4.66%