Amgen (AMGN) AI Stock Analysis

• Market Cap: $176.43B
• Dividend Yield: 3%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.37
• Revenue Growth: 11.03%
• EPS Growth: 65.22%
• Country: US
• Employees: 28,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 5.64
• Shares Outstanding: 538,480,650
• 10 Day Avg. Volume: 1,197,429
• 30 Day Avg. Volume: 2,527,168
• PEG Ratio: -0.88
• Price to Book (P/B): 23.99
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 13.57
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.51
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: 11.98
• 1Y Price Target: $343.43
• Price Target Upside: 4.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $392.00 ▲(19.64% Upside)

Amgen's overall stock score is driven by strong financial performance and positive earnings call insights. The stock shows bullish technical indicators, although the high P/E ratio suggests potential overvaluation. The company's strategic initiatives and robust revenue growth are significant positives, but the high debt level and competitive pressures pose risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and product demand, supporting long-term financial health and expansion potential.

FDA Approval

Full FDA approval for IMDELLTRA enhances Amgen's product portfolio and market position in oncology, potentially driving future revenue growth.

Cash Flow Generation

Strong cash flow growth supports operational flexibility and investment in R&D, ensuring sustained innovation and competitive advantage.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility, increasing risk and potentially impacting the company's ability to invest in growth opportunities.

Increased Competition

Rising competition for key products like Prolia may pressure margins and market share, challenging Amgen's revenue growth and profitability.

Study Delays

Delays in clinical studies can postpone product launches, affecting revenue timelines and potentially hindering competitive positioning.

Amgen Business Overview & Revenue Model

Company Description

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta that reduces the chance of infection due a low white blood cell count in patients cancer; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; and Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization. It also markets Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. It has collaboration agreements with Novartis Pharma AG; UCB; Bayer HealthCare LLC; BeiGene, Ltd.; Eli Lilly and Company; Datos Health; and Verastem, Inc. to evaluate VS-6766 in combination with lumakrastm (Sotorasib) in patients with KRAS G12C-mutant non-small cell lung cancer. It has an agreement with Kyowa Kirin Co., Ltd. to jointly develop and commercialize KHK4083, a Phase 3-ready anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis and other autoimmune diseases; and research and development collaboration with Neumora Therapeutics, Inc. and Plexium, Inc. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.

How the Company Makes Money

Amgen generates revenue primarily through the sale of its biologic drugs, which are often administered for chronic and life-threatening conditions. The company's revenue model is largely driven by product sales, which encompass both domestic and international markets. Key revenue streams include direct sales of its leading therapies, royalties from partnerships, and licensing agreements for its drug development programs. Significant partnerships with other pharmaceutical companies and collaborations with academic institutions also play a crucial role in its revenue generation, allowing Amgen to expand its product pipeline and enter new therapeutic areas. Overall, the company's strong focus on research and development, combined with an established portfolio of blockbuster drugs, underpins its financial performance.

Amgen Financial Statement Overview

Summary

Amgen demonstrates strong profitability with consistent revenue growth and healthy margins. However, high debt levels and declining free cash flow growth present potential risks. The company should focus on managing its leverage and improving cash flow generation to maintain financial stability.

Income Statement

Amgen's income statement shows a solid performance with a steady revenue growth rate of 2.32% in the TTM period. The gross profit margin of 63% and net profit margin of 17.39% indicate strong profitability, although both have decreased compared to previous years. The EBIT and EBITDA margins remain healthy at 24.20% and 36.27% respectively, reflecting efficient operations. However, the slight decline in margins suggests rising costs or competitive pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 9.24, indicating significant leverage, which could pose financial risks if not managed carefully. The return on equity is robust at 92.94%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth by -2.84% in the TTM period, which could be a concern if it continues. The operating cash flow to net income ratio of 0.53 and free cash flow to net income ratio of 0.90 indicate strong cash generation relative to net income, supporting the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.96B	33.42B	28.19B	26.32B	25.98B	25.42B
Gross Profit	23.79B	20.57B	19.77B	19.92B	19.52B	19.27B
EBITDA	16.54B	13.36B	14.80B	12.17B	11.30B	13.00B
Net Income	7.00B	4.09B	6.72B	6.55B	5.89B	7.26B
Balance Sheet
Total Assets	90.14B	91.84B	97.15B	65.12B	61.16B	62.95B
Cash, Cash Equivalents and Short-Term Investments	9.45B	11.97B	10.94B	9.30B	8.04B	10.65B
Total Debt	54.59B	60.10B	64.61B	38.95B	33.31B	32.99B
Total Liabilities	80.52B	85.96B	90.92B	61.46B	54.47B	53.54B
Stockholders Equity	9.62B	5.88B	6.23B	3.66B	6.70B	9.41B
Cash Flow
Free Cash Flow	11.54B	10.39B	7.36B	8.79B	8.38B	9.89B
Operating Cash Flow	13.13B	11.49B	8.47B	9.72B	9.26B	10.50B
Investing Cash Flow	-1.65B	-1.05B	-26.20B	-6.04B	733.00M	-5.40B
Financing Cash Flow	-11.04B	-9.41B	21.05B	-4.04B	-8.27B	-4.87B

Amgen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 327.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 327.64 is above the 20-day moving average (MA) of 326.43, above the 50-day MA of 322.67, and above the 200-day MA of 294.22, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMGN.

Amgen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	80 Outperform	$264.21B	14.08	39.51%	3.12%	1.59%	58.02%
BMY	78 Outperform	$108.83B	18.05	33.84%	4.84%	1.26%	―
GILD	78 Outperform	$150.87B	18.83	40.53%	2.52%	2.76%	6407.19%
AMGN	77 Outperform	$176.43B	25.33	81.71%	3.00%	11.03%	65.22%
SNY	75 Outperform	$116.66B	11.99	8.39%	4.58%	-9.32%	120.62%
PFE	74 Outperform	$143.17B	14.68	10.59%	6.65%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%