AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
291.77 USD
-0.32 (-0.11%)
293.509 USD
+1.74 (+0.6%)
Overall AMGN gets a fundamental rating of 5 out of 10. We evaluated AMGN against 534 industry peers in the Biotechnology industry. While AMGN has a great profitability rating, there are quite some concerns on its financial health. AMGN may be a bit undervalued, certainly considering the very reasonable score on growth 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.
Each year in the past 5 years AMGN has been profitable.
In the past 5 years AMGN always reported a positive cash flow from operatings.
1.2 Ratios
AMGN has a Return On Assets of 7.53%. This is amongst the best in the industry. AMGN outperforms 92.32% of its industry peers.
The Return On Equity of AMGN (89.11%) is better than 99.06% of its industry peers.
AMGN has a Return On Invested Capital of 14.12%. This is amongst the best in the industry. AMGN outperforms 95.88% of its industry peers.
AMGN had an Average Return On Invested Capital over the past 3 years of 13.04%. This is below the industry average of 15.49%.
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
Looking at the Profit Margin, with a value of 18.96%, AMGN belongs to the top of the industry, outperforming 94.01% of the companies in the same industry.
In the last couple of years the Profit Margin of AMGN has declined.
The Operating Margin of AMGN (31.30%) is better than 97.19% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
The Gross Margin of AMGN (69.71%) is better than 81.27% of its industry peers.
AMGN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMGN is creating some value.
Compared to 1 year ago, AMGN has more shares outstanding
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.
AMGN's Debt to FCF ratio of 4.94 is amongst the best of the industry. AMGN outperforms 92.32% 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.
With a Debt to Equity ratio value of 7.24, AMGN is not doing good in the industry: 82.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.24 | ||
| Debt/FCF | 4.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.7
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.31 indicates that AMGN should not have too much problems paying its short term obligations.
AMGN has a worse Current ratio (1.31) than 83.90% of its industry peers.
A Quick Ratio of 0.98 indicates that AMGN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, AMGN is doing worse than 86.70% of the companies in the same industry.
| 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.
Measured over the past 5 years, AMGN shows a small growth in Earnings Per Share. The EPS has been growing by 5.97% on average per year.
The Revenue has grown by 12.88% in the past year. This is quite good.
AMGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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
The Earnings Per Share is expected to grow by 4.13% on average over the next years.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 3.12% on average per year.
EPS Next Y8.41%
EPS Next 2Y5.37%
EPS Next 3Y4.89%
EPS Next 5Y4.13%
Revenue Next Year7.5%
Revenue Next 2Y4.61%
Revenue Next 3Y3.97%
Revenue Next 5Y3.12%
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 13.38, AMGN is valued correctly.
Based on the Price/Earnings ratio, AMGN is valued cheaply inside the industry as 97.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (26.76), we can say AMGN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.26, the valuation of AMGN can be described as correct.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMGN to the average of the S&P500 Index (22.63), we can say AMGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 97.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AMGN may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)2.24
EPS Next 2Y5.37%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.25%.
AMGN's Dividend Yield is rather good when compared to the industry average which is at 88.06. AMGN pays more dividend than 99.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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
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 2Y5.37%
EPS Next 3Y4.89%
291.77
-0.32 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner Change-0.34%
Ins Owners0.06%
Ins Owner Change1.07%
Market Cap157.08B
Revenue(TTM)34.92B
Net Income(TTM)6.62B
Analysts72
Price Target319.95 (9.66%)
Short Float %2.14%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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)0.06%
PT rev (3m)0.28%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.26 | ||
| P/S | 4.5 | ||
| P/FCF | 13.8 | ||
| P/OCF | 13.08 | ||
| P/B | 21.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)21.81
EY7.48%
EPS(NY)22.01
Fwd EY7.54%
FCF(TTM)21.15
FCFY7.25%
OCF(TTM)22.31
OCFY7.65%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.59
PEG (5Y)2.24
Graham Number82.28
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%
ROICexgc growth 3Y3.26%
ROICexgc 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
WACC8.29%
ROIC/WACC1.7
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 Y8.41%
EPS Next 2Y5.37%
EPS Next 3Y4.89%
EPS Next 5Y4.13%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.5%
Revenue Next 2Y4.61%
Revenue Next 3Y3.97%
Revenue Next 5Y3.12%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year39.98%
EBIT Next 3Y10.33%
EBIT Next 5Y5.65%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%
AMGEN INC / AMGN FAQ
Can you provide the ChartMill fundamental rating for AMGEN INC?
ChartMill assigns a fundamental rating of 5 / 10 to AMGN.
Can you provide the valuation status for AMGEN INC?
ChartMill assigns a valuation rating of 7 / 10 to AMGEN INC (AMGN). This can be considered as Undervalued.
What is the profitability of AMGN stock?
AMGEN INC (AMGN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMGEN INC (AMGN) stock?
The Price/Earnings (PE) ratio for AMGEN INC (AMGN) is 13.38 and the Price/Book (PB) ratio is 21.15.
What is the financial health of AMGEN INC (AMGN) stock?
The financial health rating of AMGEN INC (AMGN) is 3 / 10.