Amgen (AMGN) AI Stock Analysis

• Market Cap: $160.37B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.35
• Revenue Growth: 15.59%
• EPS Growth: 56.99%
• Country: US
• Employees: 28,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - General
• EPS (TTM): 4.90
• Shares Outstanding: 537,706,100
• 10 Day Avg. Volume: 3,514,785
• 30 Day Avg. Volume: 2,779,105
• PEG Ratio: 0.58
• Price to Book (P/B): 25.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.25
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 9.50
• Enterprise Value/Ebitda: 4.17
• 1Y Price Target: $326.76
• Price Target Upside: 9.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 70 Outperform
• Price Target: $324.00 ▲(8.64%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

Clinical Trial Results

The Ph3 FORTITUDE-101 trial showed a statistically significant and clinically meaningful improvement in Overall Survival for patients with specific gastric cancer when treated with bemarituzumab plus chemotherapy.

Pipeline Growth

Amgen's pipeline is considered to have received an incremental positive boost from the trial results.

Negative Factors

Market Impact

Despite the positive trial results, the event is seen as a low impact catalyst due to the size of the opportunity.

Safety Concerns

Ocular events occurred with greater frequency and severity in the Ph3 bemarituzumab arm, which raises concerns about safety.

Tolerability Issues

Shares were weak primarily because of GI tolerability concerns, even though it was a widely held view the data would look mixed.

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 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 Financial Statement Overview

Summary

Amgen demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and solid cash generation. However, the high debt levels and relatively low equity base could pose risks if not managed carefully.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.13B	33.42B	28.19B	26.32B	25.98B	25.42B
Gross Profit	21.50B	20.57B	19.77B	19.92B	19.52B	19.27B
EBITDA	12.38B	13.36B	14.70B	12.09B	12.54B	12.93B
Net Income	5.93B	4.09B	6.72B	6.55B	5.89B	7.26B
Balance Sheet
Total Assets	89.37B	91.84B	97.15B	65.12B	61.16B	62.95B
Cash, Cash Equivalents and Short-Term Investments	8.81B	11.97B	10.94B	9.30B	8.04B	10.65B
Total Debt	57.38B	60.10B	64.61B	38.95B	33.31B	32.99B
Total Liabilities	83.16B	85.96B	90.92B	61.46B	54.47B	53.54B
Stockholders Equity	6.21B	5.88B	6.23B	3.66B	6.70B	9.41B
Cash Flow
Free Cash Flow	10.91B	10.39B	7.36B	8.79B	8.38B	9.89B
Operating Cash Flow	12.19B	11.49B	8.47B	9.72B	9.26B	10.50B
Investing Cash Flow	-1.28B	-1.05B	-26.20B	-6.04B	733.00M	-5.40B
Financing Cash Flow	-11.81B	-9.41B	21.05B	-4.04B	-8.27B	-4.87B

Amgen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 298.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 298.24 is above the 20-day moving average (MA) of 288.05, above the 50-day MA of 281.24, and above the 200-day MA of 289.92, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 is Negative, 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
PFE	72 Outperform	$144.29B	18.39	8.62%	6.78%	13.38%	―
GILD	71 Outperform	$139.01B	23.50	32.51%	2.83%	4.63%	1144.01%
ABBV	71 Outperform	$334.34B	80.71	88.15%	3.46%	5.45%	-30.21%
AMGN	70 Outperform	$160.37B	27.22	105.67%	3.19%	15.59%	56.99%
SNY	67 Neutral	$119.59B	20.10	7.34%	4.58%	-4.57%	2.96%
BMY	67 Neutral	$95.49B	17.62	31.99%	5.29%	4.62%	―
BMY	67 Neutral	$95.49B	17.62	31.99%	5.29%	4.62%	―
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%