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Amgen Inc (AMGN)
:AMGN
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Amgen
(NASDAQ:AMGN)75Outperform
Positive Factors
Financial Performance
Non-GAAP EPS of $5.31 exceeded expectations, indicating strong financial performance.
Product Performance
Tezpire rapidly and significantly improved total nasal polyp score and nasal congestion score compared to placebo.
Negative Factors
Valuation Concerns
The company trades at a P/E multiple that is slightly above average, with a LT growth profile that is at or below average.
Amgen (AMGN) vs. S&P 500 (SPY)
Market Cap
$167.71B
Dividend Yield2.94%
Average Volume (3M)3.22M
Price to Earnings (P/E)41.3
Beta (1Y)0.44
Revenue Growth18.64%
EPS Growth-39.39%
CountryUS
Employees28,000
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)7.55
Shares Outstanding537,204,960
10 Day Avg. Volume3,302,958
30 Day Avg. Volume3,219,578
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.99
Price to Cash Flow (P/CF)8.80
P/FCF Ratio7.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$333.50Price Target Upside6.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Amgen Business Overview & Revenue Model
Company DescriptionFounded in 1980, California-based Amgen, Inc. is one of the world's leading biotechnology companies, which is engaged in the discovery, development, manufacture and marketing of human therapeutics. It primarily focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience areas.
How the Company Makes MoneyAmgen makes money primarily through the sale of its pharmaceutical products. The company generates revenue from its portfolio of biologic and small-molecule drugs, which are used to treat a variety of serious illnesses. Key revenue streams include established products such as Enbrel (for inflammatory diseases), Neulasta (for infection prevention in chemotherapy patients), Prolia (for osteoporosis), and XGEVA (for bone-related conditions). Additionally, Amgen invests heavily in research and development to innovate and bring new therapies to market, thereby expanding its product pipeline and future revenue potential. The company also engages in strategic collaborations and partnerships that enhance its research capabilities and market reach, contributing to its overall earnings.
Amgen Financial Statement Overview
Summary
Amgen's financial performance is characterized by strong revenue growth and cash flow generation. However, declining profit margins and high leverage present risks. The company must improve operational efficiencies and manage debt levels to enhance stability.Income Statement
Amgen's revenue has shown a consistent growth trend with a rise from $25.42 billion in 2020 to $33.32 billion in TTM. The Gross Profit Margin remains strong, indicating efficient core operations, but there is a noticeable decline in Net Profit Margin from 25.3% in 2020 to 12.3% in TTM, reflecting pressure on bottom-line profitability. The EBIT margin also saw a drop, suggesting increased operational costs or reduced pricing power.75
Positive
Balance Sheet
Amgen's balance sheet shows a high Debt-to-Equity ratio, which has risen to 10.23 in TTM, indicating increased leverage and potential financial risk. However, the Return on Equity (ROE) remains robust, reflecting effective utilization of shareholder funds, though it has declined over the years. The Equity Ratio is low, pointing to high liabilities relative to assets, which could pose risks if not managed carefully.60
Neutral
Cash Flow
The cash flow statement reflects strong operating cash flow, which has increased significantly from $10.5 billion in 2020 to $11.49 billion in TTM, indicating healthy cash generation capabilities. Free Cash Flow shows consistent growth, enhancing financial flexibility. The Operating Cash Flow to Net Income ratio is favorable, suggesting efficient conversion of net income into cash.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 26.38B | 33.42B | 28.19B | 26.32B | 25.98B | 25.42B | Gross Profit |
| 19.99B | 20.57B | 19.77B | 19.92B | 19.52B | 19.27B | EBIT |
| 7.99B | 7.26B | 7.90B | 5.33B | 6.00B | 5.79B | EBITDA |
| 12.76B | 15.69B | 14.70B | 12.09B | 12.54B | 12.93B | Net Income Common Stockholders |
| 6.58B | 4.09B | 6.72B | 6.55B | 5.89B | 7.26B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.97B | 11.97B | 10.94B | 9.30B | 8.04B | 10.65B | Total Assets |
| 91.84B | 91.84B | 97.15B | 65.12B | 61.16B | 62.95B | Total Debt |
| 60.10B | 60.10B | 64.61B | 38.95B | 33.31B | 32.99B | Net Debt |
| 48.13B | 48.13B | 53.67B | 31.32B | 25.32B | 26.72B | Total Liabilities |
| 85.96B | 85.96B | 90.92B | 61.46B | 54.47B | 53.54B | Stockholders Equity |
| 5.88B | 5.88B | 6.23B | 3.66B | 6.70B | 9.41B |
| Cash Flow | Free Cash Flow | ||||
| 8.36B | 10.39B | 7.36B | 8.79B | 8.38B | 9.89B | Operating Cash Flow |
| 9.32B | 11.49B | 8.47B | 9.72B | 9.26B | 10.50B | Investing Cash Flow |
| -2.46B | -1.05B | -26.20B | -6.04B | 733.00M | -5.40B | Financing Cash Flow |
| -8.29B | -9.41B | 21.05B | -4.04B | -8.27B | -4.87B |
Amgen Technical Analysis
Positive
312.19
Price Trends
280.27
Positive
288.57
Positive
301.39
Positive
Market Momentum
8.25
Negative
67.31
Neutral
69.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Positive. The current price of 312.19 is above the 20-day moving average (MA) of 300.02, above the 50-day MA of 280.27, and above the 200-day MA of 301.39, indicating a bullish trend. The MACD of 8.25 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMGN.
Amgen Risk Analysis
Amgen disclosed 29 risk factors in its most recent earnings report. Amgen reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amgen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $73.85B | 17.62 | 15.03% | 0.13% | 8.27% | 10.35% | |
75 Outperform | $142.89B | 299.97 | 2.48% | 2.69% | 6.16% | -91.54% | |
75 Outperform | $167.71B | 41.29 | 69.59% | 2.94% | 18.64% | -39.39% | |
69 Neutral | $20.57B | 12.67 | 9.76% | ― | -1.60% | 39.71% | |
64 Neutral | $123.21B | ― | -3.26% | ― | 11.64% | -114.72% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $13.45B | ― | -51.54% | ― | -2.93% | -4.69% |
* Healthcare Sector Average
Performance Comparison
AMGN
Amgen
312.19
43.72
16.28%
BIIB
Biogen
142.65
-74.58
-34.33%
GILD
Gilead Sciences
114.74
44.62
63.63%
ILMN
Illumina
84.89
-46.00
-35.14%
REGN
Regeneron
675.49
-288.48
-29.93%
VRTX
Vertex Pharmaceuticals
486.22
70.78
17.04%
Amgen Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 8.89% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in 2024 with significant growth in product sales, particularly in oncology and biosimilars. The successful integration of Horizon and robust financial results further reinforce Amgen's position for continued growth. However, challenges such as the upcoming patent expiration for denosumab and expected price declines pose potential risks.Highlights
Strong Product Sales Growth
Fourth quarter product sales grew 11% year-over-year, and full year product sales grew 19%, with 10 products growing by double digits or better. Repatha and EVENITY together grew 35% year-over-year.
Innovative Oncology Portfolio
Amgen's oncology portfolio, including BLINCYTO and IMDELLTRA, generated almost $8 billion in sales for the full year with 11% growth year-over-year.
Biosimilars Performance
Sales of biosimilar products were $2.2 billion in 2024, an increase of 16% year-over-year. The launch of PAVBLU, a biosimilar to EYLEA, generated $31 million in just 9 weeks.
Successful Horizon Integration
The acquisition of Horizon was accretive to non-GAAP EPS for the full year 2024, with the integration progressing well and expected $500 million in pretax cost synergies by year 3 post acquisition.
Strong Financial Performance
Amgen reported full year total revenues of $33.4 billion, a 19% increase year-over-year, and generated $10.4 billion in free cash flow for the full year.
Lowlights
Denosumab Patent Expiration
Upcoming patent expiration for denosumab, which is expected to lead to revenue decline due to biosimilar competition.
Price Declines Across Portfolio
Continued price declines are expected across the portfolio in 2025, potentially impacting revenues.
Challenges with Early-Stage Obesity Assets
Uncertainty surrounding early-stage obesity assets, with one asset not meeting the high bar for further development.
Company Guidance
During Amgen's fourth quarter and full year 2024 earnings call, the company provided detailed guidance and expectations for 2025. Amgen expects total revenues to range between $34.3 billion and $35.7 billion, with non-GAAP earnings per share forecasted to be between $20 and $21.20. The company anticipates continued growth driven by key products such as Repatha, EVENITY, TEZSPIRE, and its innovative oncology and rare disease portfolios, as well as biosimilars. They reported a robust 19% increase in product sales for 2024, with 23% volume growth, and highlighted that 21 products achieved record sales. Amgen projects a non-GAAP operating margin of 46% for 2025 and plans to invest strategically in their late-stage pipeline, including assets like MariTide and olpasiran. The guidance reflects optimism despite potential challenges, such as the upcoming denosumab patent expiration and expected continued price declines across their portfolio.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.