AMGEN INC (AMGN) Stock Analysis
AMGEN INC (AMGN) Stock Analysis
Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.
Overall Grade: F (Concerning)
AMGEN INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 22.0% | Strong cash generation |
| Debt/Equity | 6.3x | Elevated debt |
Investment Thesis: Healthy free cash flow margin of 22.0% provides financial flexibility for growth and shareholder returns.
Explore AMGEN INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: AMGEN INC earns N/A ROIC
AMGEN INC's trailing-twelve-month ROIC of N/A (sector median: -3.9%), driven by NOPAT margin of 21.2% combined with asset turnover of 0.0x. Source: 10-Q filed 2025-11-05. Gross margin of 67.2% with operating margin at 24.7% reflects strong pricing power.
| Metric | AMGN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of -3.9% |
| Gross Margin | 67.2% | Excellent | Strong pricing power |
| Operating Margin | 24.7% | Excellent | Efficient operations |
Cash Flow: AMGEN INC generates $8.1B FCF at 22.0% margin, positive NaN/8 quarters
AMGEN INC generated $8.1B in free cash flow (TTM), a 22.0% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-05.
| Metric | AMGN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 22.0% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $8.1B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AMGEN INC at 6.3x leverage
AMGEN INC's debt-to-equity ratio of 6.3x reflects high leverage. Total debt of $54.6B offset by $9.1B in cash. Source: 10-Q filed 2025-11-05.
| Metric | AMGN | Rating | Context |
|---|---|---|---|
| Debt to Equity | 6.3x | Red flag | Elevated leverage |
| Net Cash Position | $-45.5B | Warning | Net debt position |
Valuation: AMGEN INC trades at 22.8x earnings
AMGEN INC trades at a P/E of 22.8x. Free cash flow yield of 4.6% reflects market expectations for growth.
| Metric | AMGN | Rating | Context |
|---|---|---|---|
| P/E Ratio | 22.8x | Adequate | Premium valuation |
| EV/Sales | 4.8x | Good | Growth premium priced in |
| FCF Yield | 4.6% | Good | Lower cash yield |
| Dividend Yield | 3.0% | Adequate | Growth focus over income |
Capital Allocation: AMGEN INC returns 3.0% shareholder yield
AMGEN INC's total shareholder yield is 3.0% (dividends 3.0% + buybacks). Source: 10-Q filed 2025-11-05.
| Metric | AMGN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.0% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $5.2B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 22.0% | Top 5% | - |
| Gross Margin | 67.2% | Top 50% | 1.1x above |
| Operating Margin | 24.7% | Top 25% | 12.9x above |
| P/E Ratio | 22.8x | N/A | - |
Financial Scorecard
| Metric | AMGN | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 22.0% | Excellent | Top 5% of sector (median: 0.0%) |
| Gross Margin | 67.2% | Excellent | Top 50% of sector (median: 64.0%) |
| Debt to Equity Ratio | 630.7% | Red flag | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 22.8x | Adequate | Fair value |
| Free Cash Flow Yield | 4.6% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is AMGEN INC's Return on Invested Capital (ROIC)?
AMGEN INC (AMGN) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of -3.9%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is AMGEN INC's Free Cash Flow Margin?
AMGEN INC (AMGN) has a free cash flow margin of 22.0%, generating $8.1 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is AMGEN INC stock overvalued or undervalued?
AMGEN INC (AMGN) trades at a P/E ratio of 22.8x, which is above the sector median of N/A. The EV/Sales multiple is 4.8x. Free cash flow yield is 4.6%, which is in line with market averages.
Q: Does AMGEN INC pay a dividend?
AMGEN INC (AMGN) currently pays a dividend yield of 3.0%. Including share buybacks, the total shareholder yield is 3.0%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does AMGEN INC have?
AMGEN INC (AMGN) has a debt-to-equity ratio of 6.3x with total debt of $54.6 billion. Net debt position is $45.5 billion.
Q: What is AMGEN INC's revenue and earnings growth?
AMGEN INC (AMGN) grew revenue by 10.0% year-over-year. Earnings per share increased by 88.6% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does AMGEN INC compare to competitors in Healthcare?
Compared to other companies in Healthcare, AMGEN INC (AMGN) shows: ROIC of N/A is below the sector median of -3.9% (N/Ax median). FCF margin of 22.0% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 67.2% is 3.3 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with AMGEN INC?
Investors in AMGEN INC (AMGN) should monitor these potential warning signs: 1) Debt-to-equity of 6.3x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.