What Our Analysts Know About Amgen

Amgen logged a -0.4% change during today's morning session, and is now trading at a price of $249.0 per share.

Amgen shares moved -0.8% over the last 52 weeks, with a high of $296.67 and a low of $223.3. During this time, the stock outperformed the S&P 500 index by 5.0%. As of January 2022, the company's 50-day average price is $239.0. Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The large-cap Health Care company has 25,200 full time employees and is based in Thousand Oaks, CA. Amgen has returned a 3.1% dividend yield over the last 12 months.

a Flat EPS Growth Trend with a Highly Leveraged Balance Sheet:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $23,362 $25,424 $25,979 $26,323
Revenue Growth n/a 8.83% 2.18% 1.32%
Gross Margins 81.4% 75.8% 75.2% 75.7%
Gross Margins Growth n/a -6.88% -0.79% 0.66%
Operating Margins 41.4% 36.0% 35.2% 36.3%
Operating Margins Growth n/a -13.04% -2.22% 3.12%
Net Margins 33.57% 28.57% 22.68% 24.89%
Net Margins Growth n/a -14.89% -20.62% 9.74%
Earnings Per Share $12.88 $12.31 $10.28 $12.1
EPS Growth n/a -4.43% -16.49% 17.7%
Diluted Shares (MM) 609 590 573 534
Free Cash Flow (MM) $9,150 $10,497 $9,261 $8,785
FCF Growth n/a 14.72% -11.77% -5.14%
Capital Expenditures (MM) -$618 -$608 -$880 -$936
Net Debt / EBITDA 2.87 3.51 3.54 4.45

Amgen Is Overvalued:

Compared to the Health Care sector's average of 24.45, Amgen has a trailing twelve month P/E ratio of 20.6 and, according to its EPS guidance of 18.7, an expected P/E ratio of 13.3. Amgen's PEG ratio is 2.02 based on its 9.8% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

Amgen's P/B ratio is 36.3 compared to its sector average of 4.16. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 481.4% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 11.89 * 6.856) = $42.83

Amgen Is the Subject of Mixed Market Indicators:

21 analysts are following Amgen and have set target prices ranging from $175.0 to $325.0 per share. On average, they have given the company a rating of hold. At the current price of $249.0, AMGN is trading -3.36% away from its average analyst target price of $257.67 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.5% of the company's shares are tied to short positions. Institutions own 79.8% of Amgen's shares, while the insider ownership rate stands at 0.22%. The biggest shareholder is Blackrock Inc. with a 9% stake in the company worth approximately $12,080,145,360.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.