Amgen Stock Analysis, Valuation (NASDAQ:AMGN)

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$185.76 $0.88 (0.47%) AMGN stock closing price Sep 22, 2017 (Closing)
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Amgen
Updated on : Sep 22, 2017
previous close
AMGN 185.8 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Biomed-Genetics
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
7%
Operating Profit
Operating Margin:
44.7%
Sector Average:
-2.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
35.06B
Debt/Equity Ratio:
 1.11
Compared to the industry
Cash Flow
Operating cash flow:
$2.33B
Net Income:
$2.15B
Dividend Yield
AMGN dividend yield:
2.31%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AMGN PS :
5.9
Industry PS :
5.3
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
27.7%
Return on Equity:
26.7%
Free Cash Flow Margin:
36.9%
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Amgen Stock Analysis

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View Amgen stock analysis video. This is our analyst opinion covering the buy and sell arguments for AMGN stock.

Amgen, Inc. Stock Rating 4.3/5

Our Amgen stock opinion is based on fundamentals of the company. This Amgen stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy AMGN stock?

  • The TTM operating margin was good at 44.7% for Amgen.
  • Net margins came in at average 35.5% for Amgen over the last twelve months.
  • AMGN stock is trading at an earnings multiple of 15.1 which is better than the industry average of 22.9.
  • Amgen has an attractive ROIC (Return on Invested Capital) of 27.7%
  • Amgen has a good Return On Equity (ROE) of 26.7%.
  • Amgen has a healthy FCF (Free Cash Flow) margin of 36.9%.

Should you sell AMGN stock?

  • Over the last 5 years, the company registered a poor revenue growth of 7%.
  • With a debt/equity ratio of  1.11, Amgen is highly leveraged in comparison to Medical peers.

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