AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AMGN. AMGN was compared to 549 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AMGN. 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.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMGN has a Return On Assets of 7.53%. This is amongst the best in the industry. AMGN outperforms 92.53% of its industry peers.
AMGN's Return On Equity of 89.11% is amongst the best of the industry. AMGN outperforms 99.09% of its industry peers.
AMGN has a better Return On Invested Capital (14.12%) than 95.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMGN is in line with the industry average of 14.75%.
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 has a Profit Margin of 18.96%. This is amongst the best in the industry. AMGN outperforms 94.35% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
AMGN's Operating Margin of 31.30% is amongst the best of the industry. AMGN outperforms 97.45% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
With an excellent Gross Margin value of 69.71%, AMGN belongs to the best of the industry, outperforming 81.79% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMGN is still creating some value.
AMGN has more shares outstanding than it did 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
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 92.71% of its industry peers.
AMGN has a Debt/Equity ratio of 7.24. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AMGN (7.24) is worse than 83.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.48
WACC9.51%
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 84.34% of the companies in the same industry.
AMGN has a Quick Ratio of 1.31. 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 0.98, AMGN is not doing good in the industry: 87.25% of the companies in the same industry are doing better.
| 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.
AMGN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.88%.
The Revenue has been growing slightly by 7.43% on average over the past years.
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 4.24% yearly.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 3.07% on average per year.
EPS Next Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.24%
Revenue Next Year6.58%
Revenue Next 2Y4.11%
Revenue Next 3Y3.72%
Revenue Next 5Y3.07%
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.
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
With a Price/Earnings ratio of 13.59, AMGN is valued correctly.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 95.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (26.84), we can say AMGN is valued slightly cheaper.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 13.52.
95.63% 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 35.29, AMGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
96.17% of the companies in the same industry are more expensive than AMGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 12.57 |
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 excellent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)2.28
EPS Next 2Y5.19%
EPS Next 3Y5.05%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.28%. 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 107.99. AMGN pays more dividend than 99.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of AMGN grows each year by 9.41%, which is quite nice.
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
36.49% of the earnings are spent on dividend by AMGN. This is a low number and sustainable payout ratio.
The dividend of AMGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
296.47
+6.18 (+2.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.64%
Inst Owner Change1.28%
Ins Owners0.06%
Ins Owner Change0.24%
Market Cap159.41B
Analysts72.82
Price Target320 (7.94%)
Short Float %2.74%
Short Ratio5.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)-0.08%
PT rev (3m)-0.08%
EPS NQ rev (1m)-6.1%
EPS NQ rev (3m)-8.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.52 | ||
| P/S | 4.57 | ||
| P/FCF | 14 | ||
| P/OCF | 13.27 | ||
| P/B | 21.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)21.81
EY7.36%
EPS(NY)21.93
Fwd EY7.4%
FCF(TTM)21.17
FCFY7.14%
OCF(TTM)22.34
OCFY7.54%
SpS64.94
BVpS13.81
TBVpS-66.69
PEG (NY)1.82
PEG (5Y)2.28
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%
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
WACC9.51%
ROIC/WACC1.48
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 Y7.47%
EPS Next 2Y5.19%
EPS Next 3Y5.05%
EPS Next 5Y4.24%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.58%
Revenue Next 2Y4.11%
Revenue Next 3Y3.72%
Revenue Next 5Y3.07%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.97%
EBIT Next 3Y10.45%
EBIT Next 5Y5.8%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%