Amgen Inc

Health Care
Biotechnology: Biological Products (No Diagnostic Substances)
www.amgen.com

Earnings Score
Moat Score
Safety Score

Market Cap $149.29B
PE 35
Debt $63.94B
Cash $9.01B
EV $204.22B
FCF $6.28B

Earnings

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Sales & Net Margins

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Earnings	$4.23B
EBIT	$7.91B
ROE	56%
ROA	9%
FCF	$6.28B
Equity	$7.53B
Growth Stability	30%
PE	35.29
PEG	-3.74
PB	19.83
P/FCF	23.76
P/S	4.59
Price/Cash	0.06
Debt/Equity	8.5
Debt/FCF	10.18
Net Margins	14%
Gross Margins	60%
Op. Margins	24%
Earnings CAGR	-1%
Sales Growth YoY	23%
Sales Growth QoQ	1%
Sales CAGR	3%
FCF CAGR	-3%
Equity CAGR	-21%
Earnings Stability	0
Earnings Growth YoY	64%
Earnings Growth QoQ	279%
Earnings CAGR 5Y	-9%

Sales CAGR 5Y	5%
FCF CAGR 5Y	-7%
Equity CAGR 5Y	-13%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	-11%
Equity CAGR 3Y	49%
Market Cap	$149.29B
Revenue	$32.53B
Dividend Yield	3%
Payout Ratio	115%
Assets	$90.88B
Total Debt	$63.94B
Cash	$9.01B
Shares Outstanding	536.9M
EV	204.22B
Earnings Score	6%
Moat Score	93%
Safety Score	32%
Final Score	44%
Working Capital	6.45B
Current Ratio	1.32
Gross Profit	$19.68B
Shares Growth 3y	-1%
Equity Growth QoQ	27%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive-care products. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amgevita (biosimilar Humira).

SEC Filings

Direct access to Amgen Inc (AMGN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Amgen Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Amgen Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%

Stability 0%

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Amgen Inc Discounted Cash Flow

Fully customizable DCF calculator online for Amgen Inc.

Years

Calculation mode

= $50B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.3B	$6.1B	$5.9B	$5.7B	$5.5B	$5.3B	$5.1B	$5B	$4.8B	$4.6B	$4.5B	$45B
DCF		$5.5B	$4.9B	$4.3B	$3.7B	$3.3B	$2.9B	$2.5B	$2.2B	$2B	$1.7B	$17B
Value	$50B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	26%	32%	34%	9%	35%	34%	29%	23%	25%	24%	14%
ROA	-	13%	13%	14%	16%	17%	15%	13%	15%	11%	9%
ROE	-	25%	26%	8%	67%	81%	77%	88%	179%	108%	56%

Good Net Margins (14.23%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.99	4.06	3.47	3.63	3.85	3.34	3.98	4.61	8.98	10.18
Debt over Equity	1.21	1.2	1.31	1.45	3.07	3.4	3.52	4.98	11.07	10.6	8.5
Growth Stability	-	-	-	30%	100%	100%	100%	75%	94%	100%	30%

Bad Debt/FCF ratio (10.18)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (8.5)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (30%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	8%	6%	-1%	4%	-2%	9%	2%	1%	7%	5%
Earnings YoY growth	-	35%	11%	-74%	324%	-7%	-7%	-19%	11%	3%	-9%
Equity YoY growth	-	9%	6%	-16%	-50%	-23%	-3%	-29%	-45%	70%	-13%
FCF YoY growth	-	8%	13%	9%	0%	-19%	16%	-15%	5%	-16%	-7%