Return on Equity (ROE)
Higher than 91% of Healthcare sector peers
Updated 1931h ago
Sector Performance
91th percentileAMGN
89.1%
Sector Median
8.9%
Sector Avg
37.1%
Deep Analysis
Amgen's current Return on Equity (ROE) of 89.1% means that for every dollar of shareholders' equity, the company generated 89.1 cents in profit over the past year — a measure of how efficiently it uses investor capital.
This figure far exceeds the healthcare sector median of 11.1%, placing Amgen at the 95th percentile among its sector peers, indicating exceptional profitability relative to competitors. The trend direction is not available: the year-over-year change is marked as N/A, the quarter-over-quarter change as N/A, and the historical values show only the single current figure of 89.1% with no prior data. Without any trend information, it is impossible to assess whether this high ROE is stable, improving, or declining, which adds uncertainty to the investment outlook. The combination of an extremely high ROE level with no trend data suggests that while the current profitability is an opportunity, the lack of momentum creates risk for investors relying on consistency. This metric supports the overall NEUTRAL verdict because the outstanding ROE is a positive signal, but the absence of trend data prevents a stronger bullish or bearish stance — the stock warrants further investigation before action.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about AMGN?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does AMGN's Return on Equity (ROE) compare to its sector?
AMGN's Return on Equity (ROE) of 89.1% compares to a Healthcare sector median of 8.9%, placing it in the 91th percentile.
Who are AMGN's closest peers by Return on Equity (ROE)?
The closest Healthcare peers by Return on Equity (ROE) include: TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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89.1%
Sector Median
8.9%
Sector Avg
37.1%
How AMGN's Return on Equity (ROE) compares to sector peers.
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