AMGEN Inc
Exchange: NASDAQSector: HealthcareIndustry: Drug Manufacturers - General
Amgen discovers, develops, manufactures and delivers innovative medicines to fight some of the world's toughest diseases. Harnessing the best of biology and technology, Amgen reaches millions of patients with its medicines. More than 45 years ago, Amgen helped establish the biotechnology industry at its U.S. headquarters in Thousand Oaks, California, and it remains at the cutting edge of innovation, using technology and human genetic data to push beyond what is known today. Amgen is advancing a broad and deep pipeline and portfolio of medicines to treat cancer, inflammatory conditions, rare diseases, heart disease and obesity and obesity-related conditions. Amgen has been consistently recognized for innovation and workplace culture, including honors from Fast Company and Forbes. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average ®, and it is also part of the Nasdaq-100 Index ®, which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
Current Price
$331.57
+0.25%GoodMoat Value
$230.03
30.6% overvaluedProfile
Valuation (TTM)
Market Cap$178.74B
P/E22.92
EV$233.82B
P/B20.64
Shares Out539.07M
P/Sales4.80
Revenue$37.22B
EV/EBITDA13.44
AMGEN Inc (AMGN) Stock Analysis
GoodMoat Analysis
Amgen is a large, profitable biopharmaceutical company with a portfolio of established drugs, but its valuation appears stretched relative to its growth profile. While it possesses some competitive advantages, its high debt load and premium price present significant hurdles for a value investor. The current price is well above the GoodMoat target, suggesting an unfavourable risk/reward profile.
Read full analysis
Amgen Inc. is a leading biotechnology company that discovers, develops, and delivers innovative human therapeutics for serious illnesses. Its competitive moat is built primarily on a portfolio of patented biologic drugs, which provides regulatory barriers and high switching costs for patients and physicians. Applying the GoodMoat framework, it would likely score on criteria like Regulatory Barriers and potentially Brand & Culture, but its Moat Score may struggle to reach the 5+ threshold needed to proceed, given high disruption risk from biosimilars and competition. The company shows strong profitability with an ROE of 89.1% and an operating margin of 24.7%, but its revenue growth of 8.6% is modest for a premium-priced stock. The high Debt/Equity ratio of 6.3 is a significant red flag, indicating a leveraged balance sheet. Valuation is a key concern: trading at a P/E of 24.7x and a price of $353.93, it sits 54% above the GoodMoat target of $230.03. This suggests a deeply unfavourable margin of safety. Following the Decision Framework, the combination of a potentially borderline moat, high leverage, and extreme overvaluation relative to the target price results in an unfavourable assessment for a value investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$178.74B
Current Price$331.57
P/E Ratio22.92
Forward P/E—
PEG Ratio4.92
EPS$14.23
Book Value$16.06
P/B Ratio20.64
AMGN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -0.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 45.5B
Revenue
23.4B
FY19
25.4B
FY20
26.0B
FY21
26.3B
FY22
28.2B
FY23
33.4B
FY24
36.8B
FY25
Net Income
7.8B
FY19
7.3B
FY20
5.9B
FY21
6.6B
FY22
6.7B
FY23
4.1B
FY24
7.7B
FY25
AMGN 52-Week Range
$263.43
$385.19
50-Day MA: $342.79200-Day MA: $321.97
Did you know?
Earnings per share grew at a -0.3% CAGR.
AMGEN Inc (AMGN) Financial Summary
AMGEN Inc (AMGN) is a Healthcare company in the Drug Manufacturers - General industry, listed on NASDAQ. The stock currently trades at $331.57 with a market capitalization of $178.74B.
Key valuation metrics include a P/E ratio of 22.92, price-to-book ratio of 20.64, and EPS of $14.23. The company reports a profit margin of 21.0% and return on equity of 90.1%.
AMGN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $178.74B |
| P/E Ratio | 22.92 |
| EPS | $14.23 |
| P/B Ratio | 20.64 |
| P/S Ratio | 4.80 |
| EV/EBITDA | 13.44 |
| Dividend Yield | 2.87% |
| Profit Margin | 21.0% |
| Return on Equity | 90.1% |
| Debt/Equity | 6.31 |
AMGN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $23.36B | $7.84B |
| FY20 | $25.42B | $7.26B |
| FY21 | $25.98B | $5.89B |
| FY22 | $26.32B | $6.55B |
| FY23 | $28.19B | $6.72B |
| FY24 | $33.42B | $4.09B |
| FY25 | $36.75B | $7.71B |
AMGEN Inc (AMGN) Valuation
Based on GoodMoat's DCF model, AMGEN Inc has a fair value estimate of $230.03. At the current price of $331.57, the stock appears 44.1% overvalued relative to our intrinsic value estimate.
AMGN Quality Indicators
AMGEN Inc maintains a profit margin of 21.0% and an operating margin of 24.7%. Return on equity stands at 90.1%. The current ratio is 1.14. Debt-to-equity ratio is 6.31.
About AMGEN Inc
Amgen discovers, develops, manufactures and delivers innovative medicines to fight some of the world's toughest diseases. Harnessing the best of biology and technology, Amgen reaches millions of patients with its medicines. More than 45 years ago, Amgen helped establish the biotechnology industry at its U.S. headquarters in Thousand Oaks, California, and it remains at the cutting edge of innovation, using technology and human genetic data to push beyond what is known today. Amgen is advancing a broad and deep pipeline and portfolio of medicines to treat cancer, inflammatory conditions, rare diseases, heart disease and obesity and obesity-related conditions. Amgen has been consistently recognized for innovation and workplace culture, including honors from Fast Company and Forbes. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average ®, and it is also part of the Nasdaq-100 Index ®, which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
AMGN Free Cash Flow
AMGEN Inc generated $8.10B in trailing twelve-month free cash flow, representing an FCF yield of 4.53%. This moderate FCF yield indicates reasonable cash generation.
AMGN Shares Outstanding
AMGEN Inc has 0.54 billion shares outstanding at a share price of $331.57, giving it a market capitalization of $178.74B.
AMGN Recent Insider Trades
Recent insider transactions at AMGEN Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Grygiel Nancy A. (SVP & CCO) | SELL | 1,237 | $400450.55 |
| Santos Esteban (EVP, Operations) | SELL | 30,501 | $11.56M |
| Busch Matthew C. (VP, Finance & CAO) | SELL | 1,000 | $375790.00 |