AMGEN INC (AMGN) Stock Fundamental Analysis
NASDAQ:AMGN - Nasdaq - US0311621009 - Common Stock - Currency: USD
Taking everything into account, AMGN scores 5 out of 10 in our fundamental rating. AMGN was compared to 561 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are some minor concerns on its financial health. AMGN is not valued too expensively and it also shows a decent growth rate.
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.
AMGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMGN's Return On Assets of 6.64% is amongst the best of the industry. AMGN outperforms 93.40% of its industry peers.
AMGN has a Return On Equity of 95.59%. This is amongst the best in the industry. AMGN outperforms 99.29% of its industry peers.
AMGN has a better Return On Invested Capital (11.30%) than 95.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMGN is below the industry average of 15.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROIC | 11.3% |
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
The Profit Margin of AMGN (17.39%) is better than 95.19% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.22%, AMGN belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Operating Margin of AMGN has declined.
AMGN has a Gross Margin of 64.07%. This is in the better half of the industry: AMGN outperforms 79.32% of its industry peers.
AMGN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% |
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.
Compared to 1 year ago, AMGN has more shares outstanding
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 1.38, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.38, AMGN is doing good in the industry, outperforming 70.94% of the companies in the same industry.
AMGN has a debt to FCF ratio of 5.26. This is a neutral value as AMGN would need 5.26 years to pay back of all of its debts.
The Debt to FCF ratio of AMGN (5.26) is better than 93.23% of its industry peers.
A Debt/Equity ratio of 8.70 is on the high side and indicates that AMGN has dependencies on debt financing.
With a Debt to Equity ratio value of 8.70, AMGN is not doing good in the industry: 84.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.15
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AMGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, AMGN is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
AMGN has a Quick Ratio of 1.17. This is a bad value and indicates that AMGN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMGN (0.88) is worse than 90.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
AMGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, 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 15.56% 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)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
Revenue 1Y (TTM)15.56%
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 4.19% yearly.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.19%
Revenue Next Year6.24%
Revenue Next 2Y4.04%
Revenue Next 3Y3.89%
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
A Price/Earnings ratio of 13.10 indicates a correct valuation of AMGN.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 96.08% of the companies in the same industry.
AMGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 12.41, AMGN is valued correctly.
AMGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMGN is cheaper than 95.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. AMGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 95.19% of the companies listed in the same industry.
96.61% 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 | 13.39 | ||
| EV/EBITDA | 13.73 |
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 decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)2.19
EPS Next 2Y5.12%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.50%.
Compared to an average industry Dividend Yield of 108.72, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.93% of the companies listed 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 | 3.5% |
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 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
82.64% of the earnings are spent on dividend by AMGN. This is not a sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.64%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
271.9
+0.56 (+0.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner Change3.16%
Ins Owners0.07%
Ins Owner Change-9.98%
Market Cap146.19B
Analysts72.82
Price Target320.24 (17.78%)
Short Float %2.73%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend9.01
Dividend Growth(5Y)9.41%
DP82.64%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.11%
Min EPS beat(2)2.49%
Max EPS beat(2)11.73%
EPS beat(4)3
Avg EPS beat(4)4.63%
Min EPS beat(4)-2.66%
Max EPS beat(4)11.73%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.24%
EPS beat(16)14
Avg EPS beat(16)3.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)-1.78%
PT rev (3m)-1.45%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 12.41 | ||
| P/S | 4.28 | ||
| P/FCF | 13.39 | ||
| P/OCF | 11.99 | ||
| P/B | 23.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)20.76
EY7.64%
EPS(NY)21.9
Fwd EY8.06%
FCF(TTM)20.3
FCFY7.47%
OCF(TTM)22.68
OCFY8.34%
SpS63.47
BVpS11.54
TBVpS-70.98
PEG (NY)1.83
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 95.59% | ||
| ROCE | 12.97% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 56.9% | ||
| OM | 25.22% | ||
| PM (TTM) | 17.39% | ||
| GM | 64.07% | ||
| FCFM | 31.98% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 22.89% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.93% | ||
| Profit Quality | 183.97% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.38 |
F-Score6
WACC9.86%
ROIC/WACC1.15
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)11.43%
EPS 3Y5.02%
EPS 5Y5.97%
EPS Q2Q%23.74%
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.19%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.24%
Revenue Next 2Y4.04%
Revenue Next 3Y3.89%
Revenue Next 5Y2.67%
EBIT growth 1Y22.01%
EBIT growth 3Y-7.41%
EBIT growth 5Y-5.68%
EBIT Next Year38.2%
EBIT Next 3Y10.62%
EBIT Next 5Y5.13%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%