Now trading at a price of $270.98, Amgen has moved -0.2% so far today.
Amgen returned gains of 12.0% last year, with its stock price reaching a high of $296.67 and a low of $211.71. Over the same period, the stock underperformed the S&P 500 index by -11.0%. As of April 2023, the company's 50-day average price was $259.16. Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. Based in Thousand Oaks, CA, the large-cap Health Care company has 25,200 full time employees. Amgen has offered a 3.0% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 57.74%:
| 2018-02-13 | 2019-02-13 | 2020-02-13 | 2021-02-09 | 2022-02-16 | 2023-02-09 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $22,849 | $23,747 | $23,362 | $25,424 | $25,979 | $26,323 |
| Gross Margins | 82.0% | 83.0% | 81.0% | 76.0% | 75.0% | 76.0% |
| Operating Margins | 44% | 43% | 41% | 36% | 35% | 36% |
| Net Margins | 9.0% | 35.0% | 34.0% | 28.0% | 23.0% | 25.0% |
| Net Income (MM) | $1,979 | $8,394 | $7,842 | $7,264 | $5,893 | $6,552 |
| Net Interest Expense (MM) | -$1,304 | -$1,392 | -$1,289 | -$1,262 | -$1,197 | -$1,406 |
| Depreciation & Amort. (MM) | -$1,955 | -$1,946 | -$2,206 | -$3,601 | -$3,398 | -$3,417 |
| Earnings Per Share | $2.69 | $12.62 | $12.88 | $12.31 | $10.34 | $12.11 |
| EPS Growth | n/a | 369.14% | 2.06% | -4.43% | -16.0% | 17.12% |
| Diluted Shares (MM) | 735 | 665 | 609 | 590 | 570 | 541 |
| Free Cash Flow (MM) | $11,841 | $12,034 | $9,768 | $11,105 | $10,141 | $10,657 |
| Capital Expenditures (MM) | -$664 | -$738 | -$618 | -$608 | -$880 | -$936 |
| Net Current Assets (MM) | -$5,237 | -$16,298 | -$31,594 | -$32,395 | -$35,080 | -$39,274 |
| Long Term Debt (MM) | $34,190 | $29,510 | $26,950 | $32,895 | $33,222 | $37,354 |
| Net Debt / EBITDA | -0.53 | 0.38 | 1.77 | 1.75 | 2.01 | 2.28 |
Amgen has strong margins with a stable trend, exceptional EPS growth, and wider gross margins than its peer group. Furthermore, Amgen has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and just enough current assets to cover current liabilities. In addition, we note significant leverage.
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
Amgen has a trailing twelve month P/E ratio of 17.5, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $19.06, the company has a forward P/E ratio of 13.6. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 32.9%. On this basis, Amgen's PEG ratio is 0.53. Using instead the 10.9% weighted average of Amgen's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 1.6, which suggests that its shares may be overpriced. Furthermore, Amgen is likely overvalued compared to the book value of its equity, since its P/B ratio of 21.38 is higher than the sector average of 4.16. The company's shares are currently trading 531.1% above their Graham number.
Amgen Has an Average Rating of Buy:
The 19 analysts following Amgen have set target prices ranging from $185.0 to $320.0 per share, for an average of $265.26 with a buy rating. As of April 2023, the company is trading -2.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Amgen has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 79.3% of the company's shares, and the insider ownership rate stands at 0.24%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $13,242,886,625.
