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 557 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.
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.
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 (6.64%) is better than 93.00% of its industry peers.
AMGN has a Return On Equity of 95.59%. This is amongst the best in the industry. AMGN outperforms 99.10% of its industry peers.
AMGN has a better Return On Invested Capital (11.30%) than 95.69% 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 14.78%.
| 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)13.04%
ROIC(5y)14.18%
1.3 Margins
AMGN's Profit Margin of 17.39% is amongst the best of the industry. AMGN outperforms 94.97% of its industry peers.
AMGN's Profit Margin has declined in the last couple of years.
AMGN has a Operating Margin of 25.22%. This is amongst the best in the industry. AMGN outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of AMGN has declined.
AMGN has a better Gross Margin (64.07%) than 80.07% 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-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.
Compared to 1 year ago, AMGN has more shares outstanding
The number of shares outstanding for AMGN has been reduced compared to 5 years ago.
The debt/assets ratio for AMGN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that AMGN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AMGN (1.47) is better than 68.94% of its industry peers.
The Debt to FCF ratio of AMGN is 5.26, which is a neutral value as it means it would take AMGN, 5.26 years of fcf income to pay off all of its debts.
AMGN has a better Debt to FCF ratio (5.26) than 92.82% of its industry peers.
AMGN has a Debt/Equity ratio of 8.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 8.70, AMGN is not doing good in the industry: 84.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.7 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.45
WACC7.8%
2.3 Liquidity
AMGN has a Current Ratio of 1.17. This is a normal value and indicates that AMGN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.17, AMGN is not doing good in the industry: 86.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.88 indicates that AMGN may have some problems paying its short term obligations.
AMGN has a Quick ratio of 0.88. This is amonst the worse of the industry: AMGN underperforms 89.05% 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.
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.
Looking at the last year, AMGN shows a quite strong growth in Revenue. The Revenue has grown by 15.56% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
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
Based on estimates for the next years, AMGN will show a small growth in Earnings Per Share. The EPS will grow by 4.13% on average per year.
Based on estimates for the next years, AMGN will show a small growth in Revenue. The Revenue will grow by 2.73% on average per year.
EPS Next Y7.16%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
EPS Next 5Y4.13%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.82%
Revenue Next 5Y2.73%
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
AMGN is valuated correctly with a Price/Earnings ratio of 14.24.
Based on the Price/Earnings ratio, AMGN is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
AMGN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
AMGN is valuated correctly with a Price/Forward Earnings ratio of 13.49.
Based on the Price/Forward Earnings ratio, AMGN is valued cheaply inside the industry as 94.79% of the companies are valued more expensively.
AMGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
95.33% of the companies in the same industry are more expensive than AMGN, based on the Enterprise Value to EBITDA ratio.
AMGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMGN is cheaper than 94.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.62 |
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)1.99
PEG (5Y)2.38
EPS Next 2Y5.12%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.20%. 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 117.51. AMGN pays more dividend than 98.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, AMGN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 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
AMGN pays out 82.64% of its income as dividend. 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.
DP82.64%
EPS Next 2Y5.12%
EPS Next 3Y5.1%
295.56
+0.34 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.58%
Inst Owner Change3.04%
Ins Owners0.06%
Ins Owner Change-0.29%
Market Cap158.93B
Analysts72.82
Price Target320.26 (8.36%)
Short Float %2.41%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)0.01%
PT rev (3m)-1.53%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.49 | ||
| P/S | 4.66 | ||
| P/FCF | 14.56 | ||
| P/OCF | 13.04 | ||
| P/B | 25.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.62 |
EPS(TTM)20.76
EY7.02%
EPS(NY)21.9
Fwd EY7.41%
FCF(TTM)20.3
FCFY6.87%
OCF(TTM)22.67
OCFY7.67%
SpS63.47
BVpS11.54
TBVpS-70.97
PEG (NY)1.99
PEG (5Y)2.38
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)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-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 | 1.47 |
F-Score6
WACC7.8%
ROIC/WACC1.45
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 5Y4.13%
Revenue 1Y (TTM)15.56%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year6.35%
Revenue Next 2Y3.99%
Revenue Next 3Y3.82%
Revenue Next 5Y2.73%
EBIT growth 1Y22.01%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.48%
EBIT Next 3Y10.41%
EBIT Next 5Y5.07%
FCF growth 1Y44.93%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y41.42%
OCF growth 3Y7.45%
OCF growth 5Y4.66%