NasdaqGS:AMGN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.


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

Stable Share Price: AMGN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

AMGN

0.7%

US Biotechs

-1.1%

US Market


1 Year Return

18.8%

AMGN

14.0%

US Biotechs

17.9%

US Market

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.


Shareholder returns

AMGNIndustryMarket
7 Day-0.3%0.7%-1.1%
30 Day-1.2%5.6%1.4%
90 Day-5.0%6.2%6.9%
1 Year22.4%18.8%14.9%14.0%20.3%17.9%
3 Year39.2%27.6%24.4%21.1%47.8%38.3%
5 Year61.5%41.3%3.8%-1.0%71.9%53.0%

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?

6.1%

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).


Next Steps

Future Growth

How is Amgen forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.8%

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%).


Next Steps

Past Performance

How has Amgen performed over the past 5 years?

1.0%

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


Next Steps

Financial Health

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).


Balance Sheet

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).


Next Steps

Dividend

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

2.87%

Current Dividend Yield


Dividend Yield vs Market

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

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Bob Bradway (56yo)

7.8yrs

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 ($USD18.56M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bradway
Chairman7.8yrsUS$18.56m0.071% $93.9m
Jonathan Graham
Executive VP4.6yrsUS$5.35m0.0040% $5.3m
David Meline
Executive Vice President of Finance0yrsUS$6.86m0.0060% $7.9m
David Reese
Executive Vice President of Research & Development0yrsUS$5.34m0.0022% $2.9m
Murdo Gordon
Executive VP of Global Commercial Operations1.4yrsUS$14.08m0.0058% $7.6m
Peter Griffith
Executive VP & CFO0.08yrsno data0.0031% $4.1m
Esteban Santos
Executive Vice President of Operations3.6yrsno data0.0040% $5.3m
Mike Zahigian
Senior VP & Chief Information Officer1.1yrsno datano data
Arvind Sood
Vice President of Investor Relations15.4yrsno datano data
Cynthia Patton
Senior VP & Chief Compliance Officer7.3yrsno data0.0033% $4.3m

4.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: AMGN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Bradway
Chairman7.8yrsUS$18.56m0.071% $93.9m
Fred Hassan
Independent Director4.6yrsUS$347.47k0.0014% $1.9m
Ronald Sugar
Independent Director9.6yrsUS$338.61k0.0024% $3.2m
Robert Eckert
Lead Independent Director3.8yrsUS$399.76k0.000070% $92.0k
Charles Holley
Independent Director3yrsUS$355.64k0.00021% $275.9k
Rebecca Henderson
Independent Director10.6yrsUS$354.48k0.00053% $696.4k
Greg Garland
Independent Director6.3yrsUS$364.00k0.0014% $1.8m
Ellen Kullman
Independent Director3.3yrsUS$343.83k0.000070% $92.0k
Tyler Jacks
Independent Director7.8yrsUS$346.00k0.00032% $420.5k
R. Williams
Independent Director5.3yrsUS$338.22k0.00085% $1.1m

5.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AMGN's board of directors are considered experienced (5.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$131.403b
  • Shares outstanding: 589.81m
  • Website: https://www.amgen.com

Number of Employees


Location

  • Amgen Inc.
  • One Amgen Center Drive
  • Thousand Oaks
  • California
  • 91320-1799
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1983
AMGN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1983
4332SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon StockHKHKDJun 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
0R0TLSE (London Stock Exchange)YesCommon StockGBUSDJun 1983
AMG-UETLX (Eurotlx)YesCommon StockITEURJun 1983
AMGNWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1983
AMGNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REPR 1 (USD)ARARSSep 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:43
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.