10Y annualized return is
positive but below market average
at 6.2% per year
AMGN has met or exceeded earnings expectations in
most
recent quarters (9/10)
Strong Return on Equity
Strong Gross Profit Margin
Decent Operating Profit Margin
Adequate Current Ratio
Strong Cash Position
Strong Revenue Growth
Diverse and Robust Product Portfolio
Strong Pipeline and R&D Investments
Expanding Market Opportunities
Innovative Pipeline Advancements
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
Low Net Profit Margin
High Debt Levels
Low Interest Coverage
Pricing Pressures
Upcoming Patent Expiry Risks
Competitive Pressures in Obesity Market
Regulatory Challenges
Overall, Amgen demonstrates strong business quality with robust revenue growth, a diverse product portfolio, and significant R&D investments. However, it faces challenges such as pricing pressures and patent expirations. Future prospects are bolstered by expanding opportunities and innovation in its pipeline, although competition in certain markets remains a concern.
Analysis Date: February 4, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Amgen Inc. is a company that makes medicines to help treat various health problems, such as cancer, bone diseases, and heart issues. They create products like Enbrel for arthritis and Neulasta to protect cancer patients from infections. Amgen works with doctors and hospitals to provide these treatments to patients all around the world. Founded in 1980 and based in California, Amgen is dedicated to improving people's health through their innovative therapies.
Streams of revenue
Geographic Distribution
Core Products
No core products data available
Business Type
Competitive Advantages
Key Business Risks
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$94.59
Current Market Price: $292.59
IV/P Ratio: 0.32x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-209.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for AMGN
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (38.91)
P/B ratio ≤ 1.5 (27.08)
Current ratio ≥ 2.0 (1.26x)
Long-term debt < Net current assets (9.53x)
Margin of safety (-209.0%)
AMGN does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
67.18%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
61.53%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
12.24%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 61.41% indicates that the company retains a significant portion of revenue as profit after accounting for the cost of goods sold.
An operating profit margin of 21.47% shows that the company is managing its operating expenses well relative to its revenue.
The net profit margin of 12.28% suggests that, while gross margins are strong, overall profitability is limited after all expenses are considered.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
10.23x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.26x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A current ratio of 1.26 indicates that the company has enough current assets to cover its current liabilities, suggesting good short-term financial health.
With cash per share at $22.15, the company has a solid cash position to support operations and investments.
The debt-to-equity ratio of 10.23 and debt-to-assets ratio of 65.44% indicate high reliance on debt, which can increase financial risk.
An interest coverage ratio of 2.27 suggests the company may struggle to meet interest obligations, indicating potential financial stress.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Amgen reported a 19% growth in product sales for the year, fueled by strong execution across its therapeutic areas. The company has a solid track record of revenue growth, achieving mid-single-digit growth over the past decade, despite facing competition from biosimilars.
Amgen exited 2024 with 14 medicines each generating over $1 billion in annual sales. This includes key products like Repatha and EVENITY, which are positioned for significant growth due to their large addressable markets.
Amgen is investing heavily in R&D, with a 25% increase in spending year-over-year, focusing on innovative products across various therapeutic areas. This positions the company for future growth and market leadership.
Amgen faces declining net prices and potential losses of exclusivity for some products. For example, the company anticipates continued price erosion for Repatha, albeit at a reduced rate.
The upcoming patent expiration for denosumab poses a risk to revenue streams, which could affect the company's overall market position.
Amgen has significant growth prospects with multiple products set to address large unmet needs, such as Repatha's expansion into primary prevention and the launch of TEPEZZA in additional countries.
Amgen's pipeline includes promising therapies like MariTide and olpasiran, which are expected to progress into Phase III trials in 2025. This innovation could enhance Amgen's market position in key therapeutic areas.
While the company is optimistic about MariTide, there have been setbacks in obesity assets, indicating potential vulnerabilities in this competitive field.
Navigating regulatory and political changes poses challenges that could impact product approvals and market access, potentially affecting sales growth.