NasdaqGS:AMGN

Stock Analysis Report

Executive Summary

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide.

Snowflake

Fundamentals

Solid track record and fair value.


Similar Companies

Share Price & News

How has Amgen's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.05%

AMGN

3.1%

US Biotechs

0.07%

US Market


1 Year Return

8.2%

AMGN

-1.6%

US Biotechs

8.9%

US Market

Return vs Industry: AMGN exceeded the US Biotechs industry which returned -1.6% over the past year.

Return vs Market: AMGN matched the US Market which returned 8.9% over the past year.


Shareholder returns

AMGNIndustryMarket
7 Day0.05%3.1%0.07%
30 Day2.8%0.2%-0.3%
90 Day16.8%0.9%-1.6%
1 Year11.5%8.2%-0.7%-1.6%11.3%8.9%
3 Year39.5%27.9%18.9%14.7%46.3%36.8%
5 Year45.7%28.0%-1.8%-6.6%62.1%44.3%

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

Valuation

Is Amgen undervalued compared to its fair value and its price relative to the market?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMGN ($203.32) is trading below our estimate of fair value ($221.58)

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 (16x) compared to the Biotechs industry average (16.4x).

PE vs Market: AMGN is good value based on its PE Ratio (16x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AMGN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AMGN is overvalued based on its PB Ratio (11.3x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Amgen forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMGN's forecast earnings growth (6.9% per year) is above the savings rate (2.7%).

Earnings vs Market: AMGN's earnings (6.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: AMGN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMGN's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AMGN's revenue (4.5% 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 (61.7%).


Next Steps

Past Performance

How has Amgen performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMGN's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: AMGN's earnings growth over the past year (236.6%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: AMGN earnings growth over the past year (236.6%) exceeded the Biotechs industry 83.4%.


Return on Equity

High ROE: Whilst AMGN's Return on Equity (73.73%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: AMGN has a higher Return on Assets than the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: AMGN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Amgen's financial position?


Financial Position Analysis

Short Term Liabilities: AMGN's short term assets ($30.7B) exceeds its short term liabilities ($10.6B)

Long Term Liabilities: AMGN's short term assets (30.7B) do not cover its long term liabilities (38.0B)


Debt to Equity History and Analysis

Debt Level: AMGN's debt to equity ratio (283.6%) is considered high

Reducing Debt: AMGN's debt to equity ratio has increased from 136.6% to 283.6% over the past 5 years.

Debt Coverage: AMGN's debt is well covered by operating cash flow (31.8%).

Interest Coverage: AMGN's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet

Inventory Level: AMGN has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMGN's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Amgen's current dividend yield, its reliability and sustainability?

2.85%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AMGN's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AMGN's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), 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 (39% payout ratio).


Next Steps

Management

What is the CEO of Amgen's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Bob Bradway (56yo)

7.4yrs

Tenure

US$18,555,266

Compensation

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 ($USD18.56M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: AMGN's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AMGN's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: AMGN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$999,13904 Sep 19
Cynthia Patton
EntityIndividual
Role
Chief Compliance Officer
Senior VP & Chief Compliance Officer
Shares4,802
Max PriceUS$208.07

Ownership Breakdown


Management Team

  • Mike Zahigian

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Arvind Sood

    Vice President of Investor Relations

    • Tenure: 15.1yrs
  • David Meline (62yo)

    Executive VP & CFO

    • Tenure: 5.3yrs
    • Compensation: US$6.86m
  • Jon Graham (58yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$5.35m
  • Bob Bradway (56yo)

    Chairman

    • Tenure: 7.4yrs
    • Compensation: US$18.56m
  • Lori Johnston (54yo)

    Senior Vice President of Human Resources

    • Tenure: 2.8yrs
  • Cynthia Patton (57yo)

    Senior VP & Chief Compliance Officer

    • Tenure: 7yrs
  • Murdo Gordon (52yo)

    Executive VP of Global Commercial Operations

    • Tenure: 1.1yrs
    • Compensation: US$14.08m
  • Esteban Santos (51yo)

    Executive Vice President of Operations

    • Tenure: 3.3yrs
  • David Reese (56yo)

    Executive VP of Research & Development

    • Tenure: 0yrs
    • Compensation: US$5.34m

Board Members

  • Fred Hassan (73yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$347.47k
  • Ron Sugar (70yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$338.61k
  • Robert Eckert (65yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$399.76k
  • Charles Holley (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$355.64k
  • Rebecca Henderson (58yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$354.48k
  • Greg Garland (62yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$364.00k
  • Ellen Kullman (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$343.83k
  • Tyler Jacks (58yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$346.00k
  • R. Williams (70yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$338.22k
  • Bob Bradway (56yo)

    Chairman

    • Tenure: 7.4yrs
    • Compensation: US$18.56m

Company Information

Amgen Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amgen Inc.
  • Ticker: AMGN
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$121.931b
  • Shares outstanding: 599.70m
  • Website: https://www.amgen.com

Number of Employees


Location

  • Amgen Inc.
  • One Amgen Center Drive
  • Thousand Oaks
  • California
  • 91320
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1983
AMGN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1983
AMGNSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1983
AMGXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1983
AMGDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1983
AMGNSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJun 1983
AMGNWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1983
AMGNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REPR 1 ORD USD0.0001ARARSSep 2000
AMGN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012

Biography

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It offers products for the treatment of oncology/hematology, cardiovascular, inflammation, bone health, and neurosci ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.