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Fundamental analysis: Amgen Inc. (AMGN)

Awarener score: 7.6

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

• Business has been shrinking. It's been substantially worse when measured against peer companies.
• Amgen Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 9.3

• AMGN profit margins -on goods and services sold- are usually excellent. They stand somewhat better than rival companies.
• Business profit on sales tends to be huge. It's great when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain impressive in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain great when measured against rivals.
• Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 3.0

• Amgen Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
• Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- tended to shrink. It turns to be in a very weak position compared to similar stocks.
• In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
• In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
• Earnings per share have grown at a normal rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 6.0

• AMGN managed to pay little to no income taxes on profits made in the past years. It's been slightly worse than peers.
• Research and development expenses consume a moderate portion of revenues. It's almost average when measured against competitors.
• The company grows very little in relation to research and development efforts. It stands in a very weak position compared to rival companies.

Profitability score: 10.0

• Amgen Inc. usually gets huge returns on the resources it controls. It proves similar to peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 6.9

• AMGN usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands almost average when measured against rival firms.
• The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
• In the past twelve months it paid good dividends, considering the current stock price. It came slightly better than competitors.
• Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved excellent in relation to similar firms.
• The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks slightly better than comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands excellent in relation to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.2

• Amgen Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
• The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be in good shape compared to similar firms.
• A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks great when measured against rivals.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
• For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is better than most similar enterprises.
• Usually, sales are on somewhat less than three months credit. It still ranks substantially worse when measured against peers.
• Normally has more than six months of sales worth in inventory. It comes up as a disappointment compared to competitors.
• On average, it takes plenty of months from the purchase to charging customers. It happens to be bottom tier against peers.
• On average pays suppliers approximately three months after the purchase. It ranks substantially worse when measured against industry peers.
• The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's a disappointment compared to similar companies.
• Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
• Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
• Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
• Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 5.8

• Amgen Inc. looks reasonable in relation to profits and financial position. It happens to be almost average when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands somewhat worse than similar companies.
• The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still almost average when measured against industry firms.
• In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• The company is somewhat indebted, loan repayment needs to be taken into account. It looks bottom tier against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks almost average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
• The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
• In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 6.5

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Awarener score: 7.6

Conclusion

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