One-glance verdict
Within fair range
$313.70 our estimate vs market $377.35
Wall Street consensus: $388.03 (23.7% higher than our fair-value estimate)
20% above our estimate
Fundamentals snapshot
Amgen Inc.
AMGN · NMS · Healthcare · Drug Manufacturers - General
Current price
$377.35
52-week range
$269.77 - $447.03
Market cap
$204.01B
Balance sheet
Distressed
3.30x Stretched
Net debt $43.31B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.7% last year.
- Reward Returns 91.5% on equity, ahead of 80% of its peers.
- Risk Net debt grew 53.4% over 3 years.
- Risk Operating margin compressed from 36.3% to 35.5% over 3 years.
What this company does
Amgen Inc.
Amgen is a large biotechnology company that creates and sells medicines for serious and long-term illnesses like arthritis, cancer, and bone disease. The company makes most of its money from a portfolio of these established drugs, which are often protected by patents (exclusive rights that prevent competitors from making the same drug for a set time). This protection allows for consistent sales, which provides the cash needed to fund the expensive and lengthy process of discovering new treatments.
How the company got here
Founded in 1980 as Applied Molecular Genetics, Amgen is a pioneer in biotechnology, the science of using living organisms to make useful products. A key turning point was in 1983 when its scientists successfully cloned the gene for erythropoietin, a protein that stimulates red blood cell production, leading to their first major drug, Epogen. The company went public in 1983 and received its first drug approval from the FDA (the U.S. Food and Drug Administration, which decides if a medicine is safe and effective) in 1989. Over the years, Amgen has grown by developing new drugs in-house and by acquiring other companies, such as the 2002 purchase of Immunex, which brought in the blockbuster drug Enbrel, and the 2023 acquisition of Horizon Therapeutics, which expanded its portfolio of treatments for rare diseases.
What it actually does
Amgen discovers, develops, makes, and sells medicines based on advances in cellular and molecular biology. These medicines, known as human therapeutics, are designed to treat serious illnesses. The company focuses on six main areas: heart disease, cancer, bone health, neuroscience (the study of the nervous system), kidney disease, and inflammation (the body's response to injury or infection). Amgen's products are sold to pharmaceutical wholesalers, who then distribute them to hospitals, clinics, and pharmacies.
General Medicine
This is one of Amgen's core areas, focusing on widespread conditions that affect large numbers of people. Key products in this area include Prolia, for osteoporosis (a condition that weakens bones), and Repatha, which is used to lower bad cholesterol and reduce the risk of heart attack and stroke. This segment represents a significant portion of Amgen's business, with these established drugs generating substantial and consistent revenue for the company.
Oncology
The oncology (the study and treatment of tumors) segment is focused on developing and selling medicines that fight cancer. This includes treatments like XGEVA, which helps prevent bone problems in cancer patients, and KYPROLIS, used for a type of blood cancer called multiple myeloma. Amgen is also developing innovative cancer therapies, such as those that help the body's own immune system fight cancer cells. This is a major area of investment and growth for the company.
Inflammation
This part of the business creates treatments for autoimmune diseases, where the body's immune system mistakenly attacks its own tissues. A major product here is Enbrel, which treats conditions like rheumatoid arthritis and psoriasis. Another key drug is Otezla, which is used for plaque psoriasis and psoriatic arthritis. This segment is a foundational part of Amgen's portfolio, providing steady revenue from widely-used medications.
Rare Disease
This is a newer but rapidly growing part of Amgen's business, significantly expanded by the acquisition of Horizon Therapeutics. This segment focuses on developing treatments for uncommon and often severe conditions that affect a smaller number of patients. Key products include TEPEZZA for thyroid eye disease and KRYSTEXXA for chronic refractory gout (a severe form of gout). While the patient populations are smaller, these specialized medicines can be a significant source of revenue.
What management is betting on now
Amgen's leadership is focused on growing the company by developing new, innovative medicines and expanding the use of its existing successful drugs. A major priority is advancing its pipeline (the set of drugs a company is developing), with a particular focus on new treatments for obesity and cancer. The company is also making significant investments in the rare disease market, aiming to grow the sales of drugs acquired through the Horizon Therapeutics purchase. Additionally, Amgen is focused on expanding its business internationally and using human genetics to discover new drug targets, which they believe will increase the chances of developing successful new medicines.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$3.31B
FY2024 Q4
$4.40B
FY2025 Q1
$980.00M
FY2025 Q2
$1.91B
FY2025 Q3
$4.25B
FY2025 Q4
$961.00M
FY2026 Q1
$1.48B
FY2026 Q2
$3.49B
Revenue
$10.05B
Net income
$2.38B
Diluted EPS
4.37
Operating cash flow
$4.00B
Free cash flow
$3.49B
Fetching…
Sources
Revenue
$8.62B
Net income
$1.82B
Diluted EPS
3.34
Operating cash flow
$2.19B
Free cash flow
$1.48B
Fetching…
Sources
Revenue
$9.87B
Net income
$1.33B
Diluted EPS
2.45
Operating cash flow
$1.60B
Free cash flow
$961.00M
Fetching…
Sources
Revenue
$9.56B
Net income
$3.22B
Diluted EPS
5.93
Operating cash flow
$4.68B
Free cash flow
$4.25B
Fetching…
Sources
Revenue
$9.18B
Net income
$1.43B
Diluted EPS
2.65
Operating cash flow
$2.28B
Free cash flow
$1.91B
Fetching…
Sources
Revenue
$8.15B
Net income
$1.73B
Diluted EPS
3.20
Operating cash flow
$1.39B
Free cash flow
$980.00M
Fetching…
Sources
Revenue
$9.09B
Net income
$627.00M
Diluted EPS
1.17
Operating cash flow
$4.77B
Free cash flow
$4.40B
Fetching…
Sources
Revenue
$8.50B
Net income
$2.83B
Diluted EPS
5.22
Operating cash flow
$3.57B
Free cash flow
$3.31B
Fetching…
Sources
Is it cheap or expensive?
Fair value $313.70 vs current price $377.35
Wall Street consensus is the average analyst price target: $388.03 (23.7% higher than our fair-value estimate).
Our most-likely fair value is $313.70 a share — about 16.9% away from today's price of $377.35, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $43.3B. Interest coverage 3.3x.
Net debt
$43.31B
Interest coverage
3.30x
Amgen Inc.'s profit covers its interest bill about 3.3 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
AMGN
BASELINE
Amgen Inc.
Total debt $57.30B Interest coverage 3.30x This is the baseline the peer rows are being compared against.
Total debt $26.25B Interest coverage 11.43x +247% vs AMGN Carries about 3.5x more debt cushion than AMGN.
Total debt $2.71B Interest coverage 84.52x +2,464% vs AMGN Carries about 25.6x more debt cushion than AMGN.
Total debt $1.98B Interest coverage 342.44x +10,290% vs AMGN Carries about 103.9x more debt cushion than AMGN.
Total debt $45.05B Interest coverage 7.26x +120% vs AMGN Carries about 2.2x more debt cushion than AMGN.
Total debt $70.88B Interest coverage 6.94x +111% vs AMGN Carries about 2.1x more debt cushion than AMGN.
What you should know
The case for and against AMGN
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.7% last year.
-
Returns 91.5% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 53.4% over 3 years.
-
Operating margin compressed from 36.3% to 35.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.42x
Forward P/E
15.46x
P/B
17.45x
P/S
5.36x
EV/EBITDA
14.32x
PEG ratio
2.27x
Profitability
How much profit each dollar creates
Gross margin
71.9%
Operating margin
35.5%
Net margin
23.0%
ROE
91.5%
ROA
8.7%
Health
Liquidity and balance-sheet strength
Debt / equity
4.90x
Current ratio
1.37x
Quick ratio
0.95x
Total debt
$57.30B
Total cash
$13.99B
Growth
How the business has been compounding
Revenue TTM
$38.09B
Revenue 5Y CAGR
9.1%
EPS TTM
16.11
EPS 5Y CAGR
5.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.48B
Free CF TTM
$8.10B
FCF margin
21.3%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
60.9%
Last ex-div date
2026-08-21