AMGNAMGN
US • —
$362.12
P/E
25.18
PEG
0.80
FCF Yield
—
Rev Growth YoY
+9.1% YoY
Gross Margin
74.0%
Health Score
6/10
D/E Ratio
6.31
Confidence
MEDIUM
Business Snapshot
Amgen is a global biotechnology company focused on developing and manufacturing innovative human therapeutics across oncology, cardiovascular disease, inflammation, and bone health. The company operates in the highly regulated biopharmaceutical market where it maintains a strong competitive position as one of the world's largest independent biotech firms, supported by a diversified portfolio of established products and a robust pipeline. Amgen's defining characteristic is its vertically integrated manufacturing capability and deep expertise in biologics, creating high barriers to entry through complex protein-based drug production. The company has demonstrated consistent earnings growth of 31.3%, reflecting operating leverage and margin expansion from its core therapeutic franchises.
Financial Health
Gross margin of 74.0% is exceptionally high, characteristic of a biotech firm with proprietary biologic products and limited price competition on patent-protected drugs. However, net margin of 21.0% is moderate, indicating meaningful operating expenses in R&D and SG&A relative to revenue...
Risk Assessment
- DEBT — Debt/equity of 6.31x indicates a highly leveraged capital structure that could amplify earnings volatility and constrain strategic flexibility.
- VALUATION — Price/Book of 20.36x suggests the market is assigning a high premium to net asset value, indicative of intangible asset dependence.
- EARNINGS QUALITY — The company has beaten estimates in 4 of 4 recent quarters, which is positive for management credibility but the perfect track record may also suggest conservative guidance.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin of 74.0% is exceptionally high, characteristic of a biotech firm with proprietary biologic products and limited price competition on patent-protected drugs. However, net margin of 21.0% is moderate, indicating meaningful operating expenses in R&D and SG&A relative to revenue. The debt/equity ratio of 6.31x is elevated, representing a highly leveraged capital structure that could constrain financial flexibility in a rising-rate environment. The current ratio of 1.14x provides only a modest liquidity buffer above short-term obligations. Free cash flow data was not available, which limits assessment of the company's ability to service debt, fund dividends, or reinvest in growth. Overall, the balance sheet is stretched by debt but supported by strong gross profitability, leaving the company with adequate but not fortress-level financial health.
- DEBT — Debt/equity of 6.31x indicates a highly leveraged capital structure that could amplify earnings volatility and constrain strategic flexibility. - VALUATION — Price/Book of 20.36x suggests the market is assigning a high premium to net asset value, indicative of intangible asset dependence. - EARNINGS QUALITY — The company has beaten estimates in 4 of 4 recent quarters, which is positive for management credibility but the perfect track record may also suggest conservative guidance. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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