Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide.
Fair value with mediocre balance sheet.
Share Price & News
How has Amgen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AMGN has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AMGN exceeded the US Biotechs industry which returned 14% over the past year.
Return vs Market: AMGN matched the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is Amgen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StHere's How P/E Ratios Can Help Us Understand Amgen Inc. (NASDAQ:AMGN)
1 week ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Amgen Inc. (NASDAQ:AMGN)
3 months ago | Simply Wall StBe Sure To Check Out Amgen Inc. (NASDAQ:AMGN) Before It Goes Ex-Dividend
Is Amgen undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AMGN ($222.79) is trading below our estimate of fair value ($237.24)
Significantly Below Fair Value: AMGN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AMGN is good value based on its PE Ratio (17.2x) compared to the Biotechs industry average (20.1x).
PE vs Market: AMGN is good value based on its PE Ratio (17.2x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: AMGN is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: AMGN is overvalued based on its PB Ratio (13.6x) compared to the US Biotechs industry average (3.3x).
How is Amgen forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMGN's forecast earnings growth (7.8% per year) is above the savings rate (1.7%).
Earnings vs Market: AMGN's earnings (7.8% per year) are forecast to grow slower than the US market (14.1% per year).
High Growth Earnings: AMGN's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMGN's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AMGN's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMGN's Return on Equity is forecast to be very high in 3 years time (54%).
How has Amgen performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMGN has high quality earnings.
Growing Profit Margin: AMGN's current net profit margins (33.6%) are lower than last year (35.3%).
Past Earnings Growth Analysis
Earnings Trend: AMGN's earnings have grown by 1% per year over the past 5 years.
Accelerating Growth: AMGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AMGN had negative earnings growth (-6.6%) over the past year, making it difficult to compare to the Biotechs industry average (66.2%).
Return on Equity
High ROE: Whilst AMGN's Return on Equity (81.07%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is Amgen's financial position?
Financial Position Analysis
Short Term Liabilities: AMGN's short term assets ($18.4B) exceed its short term liabilities ($12.8B).
Long Term Liabilities: AMGN's short term assets ($18.4B) do not cover its long term liabilities ($37.2B).
Debt to Equity History and Analysis
Debt Level: AMGN's debt to equity ratio (309.1%) is considered high.
Reducing Debt: AMGN's debt to equity ratio has increased from 119.1% to 309.1% over the past 5 years.
Debt Coverage: AMGN's debt is well covered by operating cash flow (30.6%).
Interest Coverage: AMGN's interest payments on its debt are well covered by EBIT (13.8x coverage).
Inventory Level: AMGN has a low level of unsold assets or inventory.
Debt Coverage by Assets: AMGN's debt is not covered by short term assets (assets are 0.6x debt).
What is Amgen's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AMGN's dividend (2.87%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AMGN's dividend (2.87%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AMGN has been paying a dividend for less than 10 years.
Growing Dividend: AMGN's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.7%), AMGN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AMGN's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bob Bradway (56yo)
Mr. Robert A. Bradway, also known as Bob, has been the Chief Executive Officer of Amgen Inc. since May 23, 2012 and has been its President from May 2010 . Mr. Bradway is responsible for the Amgen's global ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD18.56M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
|Executive VP||4.6yrs||US$5.35m||0.0040% $5.3m|
|Executive Vice President of Finance||0yrs||US$6.86m||0.0060% $7.9m|
|Executive Vice President of Research & Development||0yrs||US$5.34m||0.0022% $2.9m|
|Executive VP of Global Commercial Operations||1.4yrs||US$14.08m||0.0058% $7.6m|
|Executive VP & CFO||0.08yrs||no data||0.0031% $4.1m|
|Executive Vice President of Operations||3.6yrs||no data||0.0040% $5.3m|
|Senior VP & Chief Information Officer||1.1yrs||no data||no data|
|Vice President of Investor Relations||15.4yrs||no data||no data|
|Senior VP & Chief Compliance Officer||7.3yrs||no data||0.0033% $4.3m|
Experienced Management: AMGN's management team is considered experienced (4.1 years average tenure).
|Independent Director||4.6yrs||US$347.47k||0.0014% $1.9m|
|Independent Director||9.6yrs||US$338.61k||0.0024% $3.2m|
|Lead Independent Director||3.8yrs||US$399.76k||0.000070% $92.0k|
|Independent Director||3yrs||US$355.64k||0.00021% $275.9k|
|Independent Director||10.6yrs||US$354.48k||0.00053% $696.4k|
|Independent Director||6.3yrs||US$364.00k||0.0014% $1.8m|
|Independent Director||3.3yrs||US$343.83k||0.000070% $92.0k|
|Independent Director||7.8yrs||US$346.00k||0.00032% $420.5k|
|Independent Director||5.3yrs||US$338.22k||0.00085% $1.1m|
Experienced Board: AMGN's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AMGN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Amgen Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Amgen Inc.
- Ticker: AMGN
- Exchange: NasdaqGS
- Founded: 1980
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$131.403b
- Shares outstanding: 589.81m
- Website: https://www.amgen.com
Number of Employees
- Amgen Inc.
- One Amgen Center Drive
- Thousand Oaks
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AMGN||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 1983|
|AMGN *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jun 1983|
|4332||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Common Stock||HK||HKD||Jun 1983|
|AMGN||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Jun 1983|
|AMG||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jun 1983|
|AMG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 1983|
|AMGN||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||USD||Jun 1983|
|0R0T||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jun 1983|
|AMG-U||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jun 1983|
|AMGN||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jun 1983|
|AMGN||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 5 REPR 1 (USD)||AR||ARS||Sep 2000|
|AMGN34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM SHS||BR||BRL||Aug 2012|
Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience areas. The company’s products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta, a pegylated protein to treat cancer patients; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Sensipar/Mimpara to treat secondary hyperparathyroidism; and EPOGEN to treat anemia caused by chronic kidney disease. It also markets other products in various markets, including Nplate, Vectibix, Repatha, Parsabiv, BLINCYTO, Aimovig, NEUPOGEN, Otezla, AMGEVITA, KANJINTI, EVENITY, IMLYGIC, MVASI, and Corlanor. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. The company has collaboration agreements with Novartis; UCB; Bayer HealthCare LLC; BeiGene, Ltd.; and QIAGEN N.V. Amgen Inc. was founded in 1980 and is headquartered in Thousand Oaks, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 00:43|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.