Last Updated: 12 Sep 2024
Executive Summary
Amgen Inc. (AMGN) is a leading biotechnology company with a strong track record of innovation and financial performance. The company's focus on developing and commercializing innovative therapies for serious diseases has driven revenue and earnings growth, resulting in a market capitalization of $177.3 billion. Despite recent headwinds, including a decline in quarterly earnings growth, Amgen's fundamentals remain solid, and the company is well-positioned for long-term growth.
Company Overview
Amgen was founded in 1980 and is headquartered in Thousand Oaks, California. The company specializes in the development and manufacture of biologics, including monoclonal antibodies, proteins, and peptides. Amgen's products are used to treat a wide range of conditions, including cancer, inflammatory diseases, and metabolic disorders.
Fundamental Analysis
Financial Performance: Amgen has consistently reported strong financial performance. In the past 12 months, the company generated revenue of $30.9 billion and EBITDA of $11.6 billion. The company's profit margin is 10.1%, and its operating margin is 22.9%.
Valuation: Amgen's trailing price-to-earnings (PE) ratio of 56.89 is higher than the industry average. However, the company's forward PE ratio of 16.13 is more attractive. Amgen's price-to-sales ratio of 5.73 is also higher than the industry average.
Dividend: Amgen pays a quarterly dividend of $8.76 per share, resulting in a dividend yield of 0.0273%. The company has a history of increasing its dividend, and its dividend coverage ratio is strong.
Technical Analysis
Chart Patterns: Amgen's stock price has been trading within a range of $242.41 to $344.45 over the past 52 weeks. The stock is currently trading near the top of this range.
Moving Averages: Amgen's 50-day moving average is $326.88, and its 200-day moving average is $299.44. The stock is currently trading above both of these moving averages.
Support and Resistance Levels: The support level for Amgen's stock is $320, and the resistance level is $340.
Short Term Outlook
In the short term, Amgen's stock price is likely to trade within the current range. The stock is facing some headwinds, including a decline in quarterly earnings growth. However, the company's fundamentals remain solid, and the stock is trading at a reasonable valuation.
Long Term Outlook
In the long term, Amgen is well-positioned for growth. The company has a strong pipeline of new products, and it is investing heavily in research and development. Amgen's focus on developing innovative therapies for serious diseases should continue to drive revenue and earnings growth.
Analyst Recommendations
Analysts are generally bullish on Amgen's stock. The average analyst target price for Amgen is $328.27, which represents a potential upside of 0.56% from the current stock price. Six analysts have a strong buy rating on Amgen, 10 have a buy rating, 13 have a hold rating, one has a sell rating, and one has a strong sell rating.
