About Amgen Inc.
Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel for the treatment of rheumatoid arthritis, plaque psoriasis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout. It also markets other products, including PROLIA, REPATHA, OTEZLA, ENBREL, EVENITY, XGEVA, TEPEZZA, BLINCYTO, NPLATE, TEZSPIRE, KYPROLIS, ARANESP, KRYSTEXXA AND VECTIBIX, MVASI, PAVBLU, UPLIZNA, IMDELLTRA/IMDYLLTRA, AMJEVITA/AMGEVITA, TAVNEOS, NEULASTA, LUMAKRAS/LUMYKRAS, RAVICTI, PARSABIV, AIMOVIG, WEZLANA/WEZENLA, AND PROCYSBI. The company serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors. The company has collaboration agreements with AstraZeneca plc for the development and commercialization of TEZSPIRE; BEONE MEDICINES LTD. to develop and commercialize Aimovig; UCB for the development and commercialization of EVENITY; Kyowa Kirin Co., Ltd. for rocatinlimab development and commercialization; and BeiGene, Ltd. for oncology products expansion and development. The company was incorporated in 1980 and is headquartered in Thousand Oaks, California.
Amgen Inc. (AMGN) is a Healthcare company in the Drug Manufacturers - General industry with a market capitalisation of $204B. The stock trades at 23.42x trailing earnings and yields 2.64%.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- Market cap
- $204B
- P/E ratio
- 23.42
- Forward P/E
- 15.46
- EPS (TTM)
- $16.11
- Revenue (TTM)
- $38.1B
- Free cash flow
- $8.6B
- Profit margin
- 23.0%
- Dividend yield
- 2.64%
- Beta
- 0.43
- Shares outstanding
- 540.6M
Financial health: Fair5.9/10
5 strengths, 3 concerns. Weakest points: debt to equity, net debt vs cash flow, peg ratio.
- 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: 91.5% (Strong, benchmark > 15%) — Earns 91.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 71.9% (Strong, benchmark > 40%) — Keeps 71.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 22.9% (Strong, benchmark > 10%) — Turns 22.9% 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: 9.5% (Watch, benchmark > 10%) — Revenue changed 9.5% year on year, short of the > 10% mark.
- Earnings growth: 64.9% (Strong, benchmark > 10%) — Earnings changed 64.9% year on year, comfortably past the > 10% mark.
- PEG ratio: 2.27 (Concern, benchmark < 1) — At 2.27, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 60.9% (Watch, benchmark < 60%) — Pays out 60.9% of earnings as dividends — above the level usually considered sustainable.