AMGEN INC (AMGN) Stock Fundamental Analysis
USA - NASDAQ:AMGN - US0311621009 - Common Stock
276.39 USD
-6.34 (-2.24%)
277.29 USD
+0.9 (+0.33%)
We assign a fundamental rating of 5 out of 10 to AMGN. AMGN was compared to 541 industry peers in the Biotechnology industry. AMGN has an excellent profitability rating, but there are concerns on its financial health. AMGN may be a bit undervalued, certainly considering the very reasonable score on growth Finally AMGN also has an excellent dividend rating.
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.
In the past 5 years AMGN always reported a positive cash flow from operatings.
1.2 Ratios
AMGN's Return On Assets of 7.53% is amongst the best of the industry. AMGN outperforms 92.24% of its industry peers.
AMGN's Return On Equity of 89.11% is amongst the best of the industry. AMGN outperforms 99.08% of its industry peers.
With an excellent Return On Invested Capital value of 14.12%, AMGN belongs to the best of the industry, outperforming 95.75% 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 15.95%.
The 3 year average ROIC (13.04%) for AMGN is below the current ROIC(14.12%), indicating increased profibility in the last year.
| 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 94.08% of the companies in the same industry.
AMGN's Profit Margin has declined in the last couple of years.
AMGN has a better Operating Margin (31.30%) than 97.23% of its industry peers.
AMGN's Operating Margin has declined in the last couple of years.
AMGN's Gross Margin of 69.71% is amongst the best of the industry. AMGN outperforms 80.78% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMGN 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
AMGN has a debt to FCF ratio of 4.94. This is a neutral value as AMGN would need 4.94 years to pay back of all of its debts.
AMGN has a Debt to FCF ratio of 4.94. This is amongst the best in the industry. AMGN outperforms 92.61% of its industry peers.
A Debt/Equity ratio of 7.24 is on the high side and indicates that AMGN has dependencies on debt financing.
With a Debt to Equity ratio value of 7.24, AMGN is not doing good in the industry: 82.81% 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/WACC1.48
WACC9.53%
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.
The Current ratio of AMGN (1.31) is worse than 83.18% 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 86.69% 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.
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 4.40% yearly.
AMGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.4%
Revenue Next Year7.6%
Revenue Next 2Y4.65%
Revenue Next 3Y4.02%
Revenue Next 5Y3.19%
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
A Price/Earnings ratio of 12.67 indicates a correct valuation of AMGN.
Based on the Price/Earnings ratio, AMGN is valued cheaper than 96.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMGN to the average of the S&P500 Index (27.30), we can say AMGN is valued rather cheaply.
The Price/Forward Earnings ratio is 12.50, which indicates a correct valuation of AMGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMGN indicates a rather cheap valuation: AMGN is cheaper than 96.12% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AMGN to the average of the S&P500 Index (22.73), we can say AMGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMGN is valued cheaper than 95.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMGN is valued cheaper than 96.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
AMGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AMGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)2.12
EPS Next 2Y5.64%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
AMGN has a Yearly Dividend Yield of 3.40%.
Compared to an average industry Dividend Yield of 167.86, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.89% of the companies listed in the same industry.
AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of AMGN is nicely growing with an annual growth rate of 9.41%!
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
36.49% of the earnings are spent on dividend by AMGN. This is a low number and sustainable payout ratio.
AMGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.49%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
276.39
-6.34 (-2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.64%
Inst Owner Change1.33%
Ins Owners0.06%
Ins Owner Change-0.57%
Market Cap148.80B
Analysts72
Price Target320.17 (15.84%)
Short Float %2.02%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)0.05%
PT rev (3m)-0.03%
EPS NQ rev (1m)-6.16%
EPS NQ rev (3m)-8.31%
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.5 | ||
| P/S | 4.26 | ||
| P/FCF | 13.07 | ||
| P/OCF | 12.39 | ||
| P/B | 20.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.13 |
EPS(TTM)21.81
EY7.89%
EPS(NY)22.12
Fwd EY8%
FCF(TTM)21.15
FCFY7.65%
OCF(TTM)22.31
OCFY8.07%
SpS64.86
BVpS13.8
TBVpS-66.61
PEG (NY)1.48
PEG (5Y)2.12
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
WACC9.53%
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 Y8.57%
EPS Next 2Y5.64%
EPS Next 3Y5.13%
EPS Next 5Y4.4%
Revenue 1Y (TTM)12.88%
Revenue growth 3Y8.76%
Revenue growth 5Y7.43%
Sales Q2Q%9.43%
Revenue Next Year7.6%
Revenue Next 2Y4.65%
Revenue Next 3Y4.02%
Revenue Next 5Y3.19%
EBIT growth 1Y75.18%
EBIT growth 3Y1.84%
EBIT growth 5Y-0.13%
EBIT Next Year37.97%
EBIT Next 3Y10.45%
EBIT Next 5Y5.82%
FCF growth 1Y17.55%
FCF growth 3Y7.44%
FCF growth 5Y4.03%
OCF growth 1Y11.23%
OCF growth 3Y7.45%
OCF growth 5Y4.66%