Amgen Inc (AMGN, Financial), a leading player in the Drug Manufacturers industry, is currently trading at $262.57 with a market cap of $140.87 billion. The stock has seen a gain of 3.81% today and a significant increase of 19.88% over the past four weeks. According to the GF Score, a stock performance ranking system developed by GuruFocus, Amgen Inc has a score of 85 out of 100, indicating good outperformance potential.
Financial Strength Analysis
Amgen Inc's Financial Strength Rank stands at 4/10. This rank measures the robustness of a company's financial situation, taking into account factors such as its debt burden, debt to revenue ratio, and Altman Z-Score. Amgen Inc's interest coverage is 4.57, indicating its ability to cover its interest expenses. However, its debt to revenue ratio of 2.32 suggests a relatively high level of debt compared to its revenue. The company's Altman Z-Score is 2.04, which is considered safe, but it's not in the best zone.
Profitability Rank Analysis
The company's Profitability Rank is impressive at 9/10. This rank measures how profitable a company is and how likely it will stay that way. Amgen Inc's operating margin is 35.72%, indicating a high level of operational efficiency. Its Piotroski F-Score is 7, suggesting a healthy financial situation. However, the trend of the operating margin over the past five years shows a decrease of 4.70%. Despite this, the company has consistently been profitable over the past ten years, and its predictability rank is 3.5, indicating a good level of predictability in its profitability.
Growth Rank Analysis
Amgen Inc's Growth Rank is 8/10, reflecting strong growth in terms of its revenue and profitability. The company's 5-year revenue growth rate is 9.20%, and its 3-year revenue growth rate is 8.20%. Its 5-year EBITDA growth rate is 4.00%, indicating a steady increase in its earnings before interest, taxes, depreciation, and amortization.
GF Value Rank Analysis
The company's GF Value Rank is 6/10, which is determined by the price-to-GF-Value ratio. This proprietary metric is calculated based on historical multiples, along with an adjustment factor based on a company's past returns and growth, and future estimates of the business' performance.
Momentum Rank Analysis
Amgen Inc's Momentum Rank is 5/10, which is determined using the standardized momentum ratio and other momentum indicators. This rank reflects the stock's price performance over the past year.
Competitor Analysis
Amgen Inc's main competitors in the Drug Manufacturers industry are Bristol-Myers Squibb Co (BMY, Financial) with a GF Score of 84, Gilead Sciences Inc (GILD, Financial) with a GF Score of 79, and Pfizer Inc (PFE, Financial) with a GF Score of 86. Despite the intense competition, Amgen Inc's GF Score of 85 indicates its strong potential for outperformance.
Conclusion
In conclusion, Amgen Inc's overall GF Score of 85 suggests good outperformance potential. With strong profitability and growth ranks, the company is well-positioned in the Drug Manufacturers industry. However, investors should also consider its financial strength and momentum ranks, as well as the competitive landscape. As always, potential investors are advised to conduct their own comprehensive research before making investment decisions.
