Amgen (AMGN) AI Stock Analysis

Compare

6,607 Followers

Top Page

Amgen

(NASDAQ:AMGN)

Rating:67Neutral

Price Target:

$317.00

▲(13.14% Upside)

Amgen's overall stock score reflects strong earnings performance and profitability, tempered by high debt levels and valuation concerns. The positive earnings call and robust product sales growth are significant strengths, while technical indicators suggest a cautious outlook.

Positive Factors

Earnings

AMGN reported earnings per share significantly above consensus expectations, leading to an increase in full-year 2025 earnings guidance.

Product Performance

Several key products showed strong sales performance, exceeding consensus expectations and contributing to the revenue upside.

Revenue Guidance

The company increased its full-year 2025 revenue guidance, indicating confidence in its future performance.

Negative Factors

Market Challenges

Bemarituzumab has a limited market opportunity and therefore is not a major value driver for Amgen.

Price Controls

Long-term Repatha risks remain, with anticipated Medicare Part D IRA price controls and potential biosimilar competition after loss of exclusivity.

Safety Concerns

Known safety issues with ocular toxicity contribute to caution about bemarituzumab's opportunity following the FORTITUDE-101 announcement.

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

Market Cap

$152.70B

Dividend Yield3.31%

Average Volume (3M)2.04M

Price to Earnings (P/E)23.2

Beta (1Y)0.39

Revenue Growth13.10%

EPS Growth110.67%

CountryUS

Employees28,000

SectorHealthcare

Sector Strength52

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)6.02

Shares Outstanding538,361,900

10 Day Avg. Volume1,916,975

30 Day Avg. Volume2,041,738

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.30

Enterprise Value/Revenue5.71

Enterprise Value/Gross Profit8.85

Enterprise Value/Ebitda12.53

Forecast

1Y Price Target

$323.47

Price Target Upside15.45% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering21

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 generates revenue primarily through the sale of its biopharmaceutical products, which are marketed under its proprietary brand names. The company's revenue model is heavily reliant on its portfolio of biologic therapies that address critical health issues, leading to significant sales in both domestic and international markets. Key revenue streams include direct product sales, royalties from licensed products, and collaborations with other pharmaceutical companies that enhance its research and development efforts. Additionally, Amgen often engages in strategic partnerships to develop new therapies, which can further boost its earnings through shared research costs and potential profit-sharing agreements.

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 shown strong growth, particularly in 2024 and 2025, reflecting the company's robust performance and strategic focus on key products like Repatha and EVENITY. The earnings call highlights a 9% revenue increase driven by a 13% volume growth, with significant contributions from the biosimilar and rare disease portfolios. Despite challenges like Prolia's sales decline and increased R&D expenses, Amgen's commitment to innovation and AI integration suggests continued momentum, especially in the U.S. market, which remains a vital growth driver.

Data provided by:

Main Street Data

Amgen Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

Amgen's Q2 2025 earnings call highlighted strong revenue and volume growth, driven by significant increases in sales of key products and a robust rare disease portfolio. The company also demonstrated progress in its R&D pipeline. However, challenges remain with pricing pressures and regulatory changes. Despite these challenges, the positive aspects of the call outweigh the negatives.

Q2-2025 Updates

Positive Updates

Revenue and Volume Growth

Amgen reported a 9% increase in revenues year-over-year and a 13% increase in volume. 15 products delivered at least double-digit sales growth.

Notable Product Performance

Repatha sales increased by 31% to $696 million, and EVENITY sales grew by 32% to $518 million. UPLIZNA sales increased by 91% year-over-year to $176 million.

Strong Rare Disease Portfolio

The rare disease portfolio grew 19% year-over-year, delivering nearly $1.4 billion in sales.

Biosimilars Contribution

Biosimilar portfolio sales grew 40% year-over-year to $661 million.

R&D Pipeline Progress

Amgen advanced multiple late-stage programs, including MariTide for obesity, which showed up to 20% weight loss at 52 weeks in trials.

Negative Updates

Pricing Pressures

Prolia sales declined 4% year-over-year due to lower net selling price.

Challenges in Regulatory Environment

Ongoing challenges with drug pricing reforms and the shifting regulatory landscape, specifically in relation to Medicaid MFN clauses.

Competition in Oncology

Increased competition in the oncology market, specifically for biosimilar versions of OPDIVO and KEYTRUDA.

Company Guidance

In the second quarter of fiscal year 2025, Amgen reported robust financial performance, with revenues increasing by 9% year-over-year to $9.2 billion, driven by a 13% volume growth. The company highlighted strong sales growth across its portfolio, with 15 products achieving double-digit or better sales increases. Notably, Repatha sales rose 31% to $696 million, and EVENITY sales increased by 32% to $518 million. Meanwhile, the rare disease portfolio grew by 19% to $1.4 billion in sales, and the innovative oncology portfolio saw a 14% increase, generating $2.2 billion. The biosimilars portfolio also exhibited significant growth, with sales up 40% to $661 million. Amgen maintained its guidance for full-year 2025 revenues to be between $35 billion and $36 billion, with non-GAAP earnings per share projected to range from $20.20 to $21.30. The company underscored its ongoing investments in research and development, including MariTide and other late-stage pipeline programs, while managing operating expenses effectively.

Amgen Financial Statement Overview

Summary

Amgen shows strong profitability with steady revenue growth and healthy margins. However, high debt levels and declining free cash flow growth present potential risks. The company needs to manage its leverage and improve cash flow generation to maintain financial stability.

Income Statement

Positive

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

Neutral

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

Positive

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	34.91B	33.42B	28.19B	26.32B	25.98B	25.42B
Gross Profit	22.50B	20.57B	19.77B	19.92B	19.52B	19.27B
EBITDA	15.90B	13.36B	14.80B	12.17B	11.30B	13.00B
Net Income	6.62B	4.09B	6.72B	6.55B	5.89B	7.26B
Balance Sheet
Total Assets	87.90B	91.84B	97.15B	65.12B	61.16B	62.95B
Cash, Cash Equivalents and Short-Term Investments	8.03B	11.97B	10.94B	9.30B	8.04B	10.65B
Total Debt	56.20B	60.10B	64.61B	38.95B	33.98B	33.45B
Total Liabilities	80.47B	85.96B	90.92B	61.46B	54.47B	53.54B
Stockholders Equity	7.43B	5.88B	6.23B	3.66B	6.70B	9.41B
Cash Flow
Free Cash Flow	10.61B	10.39B	7.36B	8.79B	8.38B	9.89B
Operating Cash Flow	12.01B	11.49B	8.47B	9.72B	9.26B	10.50B
Investing Cash Flow	-1.45B	-1.05B	-26.20B	-6.04B	733.00M	-5.40B
Financing Cash Flow	-11.84B	-9.41B	21.05B	-4.04B	-8.27B	-4.87B

Amgen Technical Analysis

Technical Analysis Sentiment

Negative

Last Price280.19

Price Trends

50DMA

291.42

Negative

100DMA

284.73

Negative

200DMA

283.65

Negative

Market Momentum

MACD

-2.48

Positive

RSI

39.54

Neutral

STOCH

20.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Negative. The current price of 280.19 is below the 20-day moving average (MA) of 287.66, below the 50-day MA of 291.42, and below the 200-day MA of 283.65, indicating a bearish trend. The MACD of -2.48 indicates Positive momentum. The RSI at 39.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	79 Outperform	$211.59B	13.06	35.44%	3.81%	2.00%	20.01%
PFE	78 Outperform	$141.46B	13.23	12.16%	6.97%	14.72%	―
SNY	72 Outperform	$113.53B	11.56	8.39%	4.73%	-9.32%	120.62%
BMY	68 Neutral	$95.95B	19.02	29.31%	5.27%	2.57%	―
GILD	68 Neutral	$142.75B	22.89	33.26%	2.69%	3.69%	501.26%
AMGN	67 Neutral	$152.70B	23.21	99.14%	3.31%	13.10%	110.67%
Sector *	51 Neutral	$7.95B	-0.38	-42.44%	2.22%	22.30%	-1.83%

* Healthcare Sector Average

Performance Comparison

AMGN

Amgen

280.19

-35.18

-11.16%

BMY

Bristol-Myers Squibb

46.72

0.40

0.86%

GILD

Gilead Sciences

115.88

39.18

51.08%

MRK

Merck & Company

84.09

-27.55

-24.68%

PFE

Pfizer

24.55

-2.93

-10.66%

SNY

Sanofi

46.80

-9.90

-17.46%

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: Aug 26, 2025