About Amgen Inc.
Amgen Inc. (AMGN) is a Healthcare company in the Biological Products, (No Diagnostic Substances) industry with a market capitalisation of $219.3B. The stock trades at 25.05x trailing earnings and yields 2.47%.
- Sector
- Healthcare
- Industry
- Biological Products, (No Diagnostic Substances)
- Market cap
- $219.3B
- P/E ratio
- 25.05
- EPS (TTM)
- $14.23
- Revenue (TTM)
- $36.8B
- Free cash flow
- $8.1B
- Profit margin
- 21.0%
- Dividend yield
- 2.47%
- Shares outstanding
- 540.6M
Financial health: Fair6.5/10
5 strengths, 2 concerns. Weakest points: debt to equity, net debt vs cash flow.
- Debt to equity: 6.31 (Concern, benchmark < 0.5) — Debt of 6.31x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.6y (Concern, benchmark < 4 years) — Net debt of $45.5B is 5.6x annual free cash flow — about 6 years of cash flow to repay.
- Current ratio: 1.14 (Watch, benchmark > 1.5) — Short-term assets cover 1.14x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 89.1% (Strong, benchmark > 15%) — Earns 89.1% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 69.5% (Strong, benchmark > 40%) — Keeps 69.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 21.0% (Strong, benchmark > 10%) — Turns 21.0% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $8.1B (Strong, benchmark positive) — Generated $8.1B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 10.0% (Watch, benchmark > 10%) — Revenue changed 10.0% year on year, short of the > 10% mark.
- Earnings growth: 88.5% (Strong, benchmark > 10%) — Earnings changed 88.5% year on year, comfortably past the > 10% mark.
- Payout ratio: 66.5% (Watch, benchmark < 60%) — Pays out 66.5% of earnings as dividends — above the level usually considered sustainable.