Amgen (AMGN) AI Stock Analysis

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Amgen

(NASDAQ:AMGN)

Rating:73Outperform

Price Target:

$324.00

▲(6.73%Upside)

Amgen's strong financial performance and positive earnings call highlight its strengths in profitability and growth potential. While technical indicators are less favorable, and high leverage poses some risk, the company's strategic investments and robust cash flow provide a solid foundation for long-term growth.

Positive Factors

Product Performance

Repatha shows strong growth with a 34% year-over-year script increase, potentially exceeding estimates by $20M.

Revenue and Earnings

Modest increases in revenue and EPS estimates are driven by a positive FX adjustment and script trends for key products.

Negative Factors

Safety Concerns

Ocular events occurred with greater frequency and severity in the Phase III bemarituzumab arm, raising concerns about safety.

Stock Rating and Valuation

The price objective for Amgen Inc. is set lower than the current price, indicating expectations for a decline in stock value.

Amgen (AMGN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$162.01B

Dividend Yield3.05%

Average Volume (3M)2.36M

Price to Earnings (P/E)27.5

Beta (1Y)0.34

Revenue Growth15.59%

EPS Growth56.99%

CountryUS

Employees28,000

SectorHealthcare

Sector Strength42

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)4.90

Shares Outstanding537,706,100

10 Day Avg. Volume1,768,123

30 Day Avg. Volume2,364,426

Financial Highlights & Ratios

PEG Ratio0.62

Price to Book (P/B)26.81

Price to Sales (P/S)0.00

P/FCF Ratio15.24

Enterprise Value/Market Cap1.32

Enterprise Value/Revenue2.44

Enterprise Value/Gross Profit12.53

Enterprise Value/Ebitda4.91

Forecast

1Y Price Target

$324.24

Price Target Upside6.81% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering22

Amgen Business Overview & Revenue Model

Company DescriptionAmgen 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 MoneyAmgen makes money primarily through the sale of its biopharmaceutical products, which constitute the bulk of its revenue. The company generates income by marketing and selling its products to healthcare providers, hospitals, clinics, and pharmacies. Key revenue streams include the sales of its flagship drugs like Enbrel, used for treating autoimmune diseases, and Prolia, used for bone health. Amgen also invests in research and development to bring new drugs to market, which can provide substantial future revenue. Additionally, strategic partnerships, collaborations, and licensing agreements with other biotech and pharmaceutical companies contribute to its earnings by expanding its research capabilities and market reach. Amgen's focus on biologics and biosimilars is a significant factor in its financial performance, enabling the company to maintain a competitive edge in the biotechnology sector.

Amgen Key Performance Indicators (KPIs)

Any

Product Sales by Geography

Product Sales by Geography
Highlights where Amgen's products are selling the most, indicating strong markets and potential areas for expansion or risk due to regional economic factors.

Chart InsightsAmgen's U.S. sales have seen a strong upward trajectory, particularly in 2024, driven by increased patient demand and successful product launches, as highlighted in the latest earnings call. The Rest of World segment also shows steady growth, supported by the biosimilars portfolio's success. However, potential challenges from tariffs and tax uncertainties could impact future operations. Despite these risks, Amgen's strategic expansions and robust pipeline position it well for continued growth, with key drivers like Repatha and EVENITY leading the charge.

Data provided by:

Main Street Data

Amgen Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 7.92%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance with notable revenue and volume growth, successful biosimilar launches, and strategic expansions. However, there are concerns regarding potential impacts from tariffs and tax uncertainties, as well as challenges in maintaining inventory levels in the rare disease segment.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue grew 9% year-over-year with a significant volume growth of 14% reflecting increased patient demand.

Biosimilars Portfolio Success

The biosimilars portfolio delivered more than $700 million in revenue this quarter, up 35% year-over-year.

Positive Phase III Data and New Product Launches

Delivered multiple positive Phase III readouts, initiated four new Phase III studies, and launched three new products or indications.

Growth in Rare Disease Portfolio

UPLIZNA, a differentiated B-cell depleting therapy, showed promise with recent FDA approval for IgG4-related disease and strong early-stage reception.

Oncology Developments

BLINCYTO and IMDELLTRA continued to grow, with IMDELLTRA showing significant survival benefits in second-line small cell lung cancer.

Expansion of Manufacturing

Amgen announced nearly $2 billion in additional expansions in Ohio and North Carolina.

Improved Access for Repatha

Repatha sales increased 27% year-over-year, driven by improved access and patient activation efforts.

Negative Updates

Uncertainty Related to Tariffs and Taxes

There is significant uncertainty related to tariffs and taxes, which could impact the business.

Challenges in Rare Disease Inventory Levels

Sales of TEPEZZA and KRYSTEXXA were adversely impacted by changes to U.S. wholesaler inventory levels.

Lower Net Selling Price

Net selling price was 6% lower, partially offsetting the volume growth.

Potential Impact of Tariffs on Future Operations

While Amgen is prepared to adapt, potential changes in tariffs present a challenge for future planning.

Company Guidance

During the Amgen Q1 FY 2025 earnings call, the company reported a robust start to the year with a 9% year-over-year revenue increase and 14% volume growth, driven by strong patient demand. Amgen highlighted double-digit sales growth across 14 medicines, spanning general medicine, rare diseases, inflammation, and oncology. Their biosimilars portfolio contributed over $700 million in revenue, a 35% increase compared to the previous year. Significant milestones included multiple positive Phase III data readouts, initiation of four new Phase III studies, and three new product or indication launches. Key growth drivers mentioned were Repatha, which saw a 27% increase in sales, and EVENITY, which grew 29%, while their rare disease portfolio, including UPLIZNA and TEPEZZA, positioned for long-term growth. The company also emphasized ongoing investments in their late-stage pipeline and manufacturing expansions, maintaining a forward-looking outlook despite uncertainties in tariffs and taxes. Overall, Amgen expressed confidence in continuing their trajectory of innovation and growth.

Amgen Financial Statement Overview

Summary

Amgen demonstrates strong financial health with consistent revenue and profit growth. The company shows impressive profitability with a gross profit margin of 63% and EBIT margin of 22%. Cash flow is robust, supporting financial flexibility. However, high leverage with a debt-to-equity ratio of 9.25 poses some risk.

Income Statement

Very Positive

Amgen's income statement demonstrates strong profitability with an impressive gross profit margin and consistent revenue growth. The TTM data shows a gross profit margin of approximately 63% and an EBIT margin of nearly 22%, highlighting efficient cost management. The net profit margin improved significantly compared to previous years, reaching around 17.4% in the TTM. Revenue growth is steady, with a notable increase from 2024 to the TTM period.

Balance Sheet

Positive

Amgen's balance sheet indicates a high level of leverage, with a debt-to-equity ratio of approximately 9.25 in the TTM. However, the company maintains a healthy equity ratio of about 6.9%, reflecting reasonable asset management. The return on equity is strong at 95.6% in the TTM, driven by high profitability, although the low equity base presents potential risks.

Cash Flow

Positive

The cash flow statement reveals robust operating cash flow, which increased to $12.19 billion in the TTM. Free cash flow is consistently high, supporting financial flexibility. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to profits. Free cash flow growth is positive, signifying healthy cash management despite capital expenditure demands.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.42B	28.19B	26.32B	25.98B	25.42B
Gross Profit	20.57B	19.77B	19.92B	19.52B	19.27B
EBITDA	13.36B	14.70B	12.09B	12.54B	12.93B
Net Income	4.09B	6.72B	6.55B	5.89B	7.26B
Balance Sheet
Total Assets	91.84B	97.15B	65.12B	61.16B	62.95B
Cash, Cash Equivalents and Short-Term Investments	11.97B	10.94B	9.30B	8.04B	10.65B
Total Debt	60.10B	64.61B	38.95B	33.98B	33.45B
Total Liabilities	85.96B	90.92B	61.46B	54.47B	53.54B
Stockholders Equity	5.88B	6.23B	3.66B	6.70B	9.41B
Cash Flow
Free Cash Flow	10.39B	7.36B	8.79B	8.38B	9.89B
Operating Cash Flow	11.49B	8.47B	9.72B	9.26B	10.50B
Investing Cash Flow	-1.05B	-26.20B	-6.04B	733.00M	-5.40B
Financing Cash Flow	-9.41B	21.05B	-4.04B	-8.27B	-4.87B

Amgen Technical Analysis

Technical Analysis Sentiment

Positive

Last Price303.56

Price Trends

50DMA

289.77

Positive

100DMA

290.77

Positive

200DMA

288.42

Positive

Market Momentum

MACD

4.56

Negative

RSI

57.33

Neutral

STOCH

59.77

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 303.56 is above the 20-day moving average (MA) of 299.00, above the 50-day MA of 289.77, and above the 200-day MA of 288.42, indicating a bullish trend. The MACD of 4.56 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 59.77 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 (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNY	74 Outperform	$120.81B	20.59	7.34%	4.48%	-4.57%	2.96%
AMGN	73 Outperform	$162.01B	27.50	105.67%	3.05%	15.59%	56.99%
BMY	71 Outperform	$96.69B	17.84	31.99%	5.25%	4.62%	―
GILD	71 Outperform	$140.60B	23.77	32.51%	2.73%	4.63%	1144.01%
ABBV	68 Neutral	$333.00B	80.39	88.15%	3.38%	5.45%	-30.21%
PFE	66 Neutral	$138.21B	17.62	8.62%	7.04%	13.38%	―
Sector *	52 Neutral	$7.58B	0.48	-62.71%	2.36%	15.33%	0.41%

* Healthcare Sector Average

Performance Comparison

AMGN

Amgen

303.56

-18.52

-5.75%

BMY

Bristol-Myers Squibb

46.86

1.44

3.17%

GILD

Gilead Sciences

114.23

40.55

55.04%

PFE

Pfizer

24.30

-4.24

-14.86%

SNY

Sanofi

49.35

-0.86

-1.71%

ABBV

AbbVie

191.22

12.30

6.87%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025