Amgen (AMGN) AI Stock Analysis

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Amgen

(NASDAQ:AMGN)

70Outperform

Amgen demonstrates robust financial performance with significant revenue and profit growth. However, high leverage and potential risks from tariffs and tax uncertainties weigh on the score. While technical indicators show bearish trends, the company's solid earnings growth and dividend yield provide some appeal.

Positive Factors

Earnings

Amgen's Q1 results beat consensus on both total revenue and EPS.

Product Development

Amgen will be initiating additional Phase 3 studies for MariTide, indicating ongoing investment in key assets.

Negative Factors

Biosimilar Competition

AMGN anticipates sales erosion from biosimilar competition.

Operating Margins

A gradual operating margin erosion is expected over the next several years.

Stock Rating

The analyst reiterates an underperform rating with a price objective of $252, which is below the current trading price.

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

Market Cap

$145.42B

Dividend Yield3.36%

Average Volume (3M)3.03M

Price to Earnings (P/E)25.6

Beta (1Y)0.34

Revenue Growth15.59%

EPS Growth56.99%

CountryUS

Employees28,000

SectorHealthcare

Sector Strength54

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)4.90

Shares Outstanding537,706,100

10 Day Avg. Volume2,611,957

30 Day Avg. Volume3,032,266

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.49

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit10.56

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$321.13

Price Target Upside18.04% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

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 pharmaceutical products. The company generates revenue from its portfolio of biologic and small-molecule drugs, which are used to treat a variety of serious illnesses. Key revenue streams include established products such as Enbrel (for inflammatory diseases), Neulasta (for infection prevention in chemotherapy patients), Prolia (for osteoporosis), and XGEVA (for bone-related conditions). Additionally, Amgen invests heavily in research and development to innovate and bring new therapies to market, thereby expanding its product pipeline and future revenue potential. The company also engages in strategic collaborations and partnerships that enhance its research capabilities and market reach, contributing to its overall earnings.

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 Financial Statement Overview

Summary

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

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
7.26B	7.90B	5.33B	6.00B	5.79B
	EBITDA
13.36B	14.70B	12.09B	12.54B	12.93B
	Net Income Common Stockholders
4.09B	6.72B	6.55B	5.89B	7.26B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.97B	10.94B	9.30B	8.04B	10.65B
	Total Assets
91.84B	97.15B	65.12B	61.16B	62.95B
	Total Debt
60.10B	64.61B	38.95B	33.31B	32.99B
	Net Debt
48.13B	53.67B	31.32B	25.32B	26.72B
	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

Negative

Last Price272.05

Price Trends

50DMA

297.72

Negative

100DMA

287.65

Negative

200DMA

299.25

Negative

Market Momentum

MACD

-6.42

Positive

RSI

34.82

Neutral

STOCH

18.09

Positive

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 272.05 is below the 20-day moving average (MA) of 280.88, below the 50-day MA of 297.72, and below the 200-day MA of 299.25, indicating a bearish trend. The MACD of -6.42 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.09 is Positive, 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 (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	76 Outperform	$122.02B	21.64	32.51%	3.16%	4.63%	1144.01%
AMGN	70 Outperform	$145.42B	25.56	105.67%	3.36%	15.59%	56.99%
SNY	70 Outperform	$132.49B	22.72	7.34%	2.83%	-4.57%	2.96%
ABBV	70 Outperform	$331.06B	83.41	61.94%	3.44%	5.45%	―
PFE	66 Neutral	$130.08B	17.30	8.62%	7.41%	13.38%	―
BMY	63 Neutral	$96.81B	18.79	31.99%	5.12%	4.62%	―
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%

* Healthcare Sector Average

Performance Comparison

AMGN

Amgen

265.86

-35.12

-11.67%

BMY

Bristol Myers

46.45

3.62

8.45%

GILD

Gilead Sciences

96.91

33.34

52.45%

PFE

Pfizer

22.28

-3.97

-15.12%

SNY

Sanofi

49.90

2.14

4.48%

ABBV

AbbVie

184.60

29.48

19.00%

Amgen Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: -4.13%|

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.