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AMGEN Inc (AMGN) Stock

AMGEN Inc Stock Details, Movements and Public Alerts

Amgen Inc. (AMGN): The $150 Billion Biotech Giant Betting on Obesity and Cancer Breakthroughs

When Robert A. Bradway took over as Amgen's CEO in 2012, the company was already a biotech titan with revenue exceeding $17 billion. Fast forward to 2025, and Bradway has navigated patent cliffs, launched breakthrough therapies like LUMAKRAS for lung cancer, and positioned Amgen at the forefront of the obesity drug revolution with MariTide—a potential blockbuster that could compete with Novo Nordisk's Wegovy and Eli Lilly's Zepbound. With a forward P/E of just 13.74 and a dividend yield over 3%, Amgen offers a rare combination: value pricing with transformative growth catalysts in two of healthcare's hottest markets.

52-Week Range

$330.26 - $247.06

-11.58% from high · +18.19% from low

Avg Daily Volume

2,781,684

20-day average

100-day avg: 2,435,308

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

24.38

Near market average

Forward P/E

13.74

Earnings expected to grow

PEG Ratio

0.96

Potentially undervalued

Price to Book

21.55

EV/EBITDA

13.11

EPS (TTM)

$12.22

Price to Sales

4.59

Beta

0.48

Less volatile than market

How is AMGN valued relative to its earnings and growth?
AMGEN Inc trades at a P/E ratio of 24.38, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 13.74 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.96 suggests the stock may be undervalued relative to its growth rate.
What is AMGN's risk profile compared to the market?
With a beta of 0.48, AMGEN Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 21.55 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

19.00%

Operating Margin

32.70%

EBITDA

$16.15B

Return on Equity

99.10%

Return on Assets

7.51%

Revenue Growth (YoY)

9.40%

Earnings Growth (YoY)

92.00%

How profitable and efficient is AMGN's business model?
AMGEN Inc achieves a profit margin of 19.00%, meaning it retains $19.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 99.10% and ROA at 7.51%, the company generates strong returns on invested capital.
What are AMGN's recent growth trends?
AMGEN Inc's revenue grew by 9.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 92.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against DRUG MANUFACTURERS - GENERAL industry averages for proper context.

Dividend Information

Dividend Per Share

$9.26

Dividend Yield

3.11%

Ex-Dividend Date

Aug 22, 2025

Dividend Date

Sep 12, 2025

What dividend income can investors expect from AMGN?
AMGEN Inc offers a dividend yield of 3.11%, paying $9.26 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 22, 2025.
How reliable is AMGN's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - AMGEN Inc pays $9.26 per share in dividends against earnings of $12.22 per share, resulting in a payout ratio of 75.78%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Sep 12, 2025.

Company Size & Market

Market Cap

$160.4B

Revenue (TTM)

$34.92B

Revenue/Share (TTM)

$64.96

Shares Outstanding

538.36M

Book Value/Share

$13.80

Asset Type

Common Stock

What is AMGN's market capitalization and position?
AMGEN Inc has a market capitalization of $160.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 538.36M shares outstanding, the company's ownership is relatively concentrated. As a major player in the DRUG MANUFACTURERS - GENERAL industry, it competes with other firms in this sector.
How does AMGN's price compare to its book value?
AMGEN Inc's book value per share is $13.80, while the current stock price is $292.00, resulting in a price-to-book (P/B) ratio of 21.16. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$311.65

6.73% upside potential

Analyst Recommendations

Strong Buy

3

Buy

10

Hold

15

Sell

2

Strong Sell

1

How reliable are analyst predictions for AMGN?
31 analysts cover AMGN with 42% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $311.65 implies 6.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AMGN?
Current analyst recommendations:3 Strong Buy, 10 Buy, 15 Hold, 2 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 6, 2025, 06:36 PM

Technical Indicators

RSI (14-day)

59.78

Neutral

50-Day Moving Average

$286.50

1.92% above MA-50

200-Day Moving Average

$284.80

2.53% above MA-200

MACD Line

2.65

MACD Signal

0.19

MACD Histogram

2.45

Bullish

What does AMGN's RSI value tell investors?
The RSI (Relative Strength Index) for AMGN is currently 59.78, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret AMGN's MACD and moving average crossovers?
MACD analysis shows the MACD line at 2.65 above the signal line at 0.19, with histogram at 2.45. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($286.50) is above the 200-day MA ($284.80), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 8, 2025, 12:58 AM

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Amgen Inc. (AMGN) Stock Analysis 2025: Complete Investment Guide

The Biotech Pioneer Reinventing Itself

Founded in 1980, Amgen pioneered the use of recombinant DNA technology to create human therapeutics. Today, Robert Bradway faces a critical inflection point: the company's legacy blockbusters—Enbrel (rheumatoid arthritis) and Neulasta (chemotherapy support)—face biosimilar erosion, while newer franchises like Prolia (osteoporosis) and Repatha (cardiovascular disease) drive growth. But it's Amgen's 2025 pipeline that has investors buzzing.

The company's MariTide obesity candidate, currently in Phase 2 trials, delivered stunning results: patients lost up to 20% of body weight with monthly injections—potentially superior to weekly competitors. If successful, this single drug could add $10-15 billion in peak annual sales, rivaling the success of Enbrel at its height. Meanwhile, LUMAKRAS, the first targeted therapy for KRAS G12C-mutated cancers, is expanding into new indications, with blockbuster potential exceeding $2 billion annually.

Business Model & Competitive Moat

Amgen operates a vertically integrated biotech model, controlling everything from drug discovery to manufacturing. This gives the company significant cost advantages—operating margins hover near 45%, among the highest in pharma. The company's moat rests on three pillars: proprietary biologics manufacturing expertise (few can replicate complex proteins at scale), a robust patent portfolio protecting key assets through the late 2020s, and an extensive global commercial infrastructure reaching 100+ countries.

Revenue streams are diversified across therapeutic areas: inflammation (Enbrel, Otezla), bone health (Prolia, Xgeva), cardiovascular (Repatha), oncology (LUMAKRAS, Vectibix), and nephrology (Parsabiv). This diversification has proven critical as biosimilar competition erodes older franchises. Bradway's strategic focus on next-generation medicines—particularly in oncology and metabolic diseases—aims to offset legacy drug declines while positioning Amgen for sustained growth through 2030 and beyond.

Financial Performance

Amgen delivered $28.2 billion in revenue in 2024, with adjusted earnings near $19 per share. While top-line growth has moderated to low single digits due to biosimilar headwinds, the company maintains fortress-like profitability and generates $9-10 billion in annual free cash flow.

  • •Revenue Growth: 2-4% annually as new products (Repatha, Prolia, Otezla) offset Enbrel/Neulasta declines
  • •Operating Margins: 44-46%, driven by manufacturing efficiency and pricing power in specialty biologics
  • •Free Cash Flow: $9-10B annually, supporting $8B+ in shareholder returns via dividends and buybacks
  • •Debt Management: Net debt-to-EBITDA around 2.0x, well within investment-grade comfort zone
  • •R&D Investment: $4.5-5B annually (16% of revenue), focused on oncology, inflammation, and obesity

Growth Catalysts

  • •MariTide Obesity Drug: Phase 3 readout expected 2026, with potential FDA approval in 2027. Peak sales could exceed $10B in a $100B+ obesity market.
  • •LUMAKRAS Expansion: Approvals in additional KRAS-mutated cancers (colorectal, pancreatic) could triple current revenue from $500M to $2B+.
  • •Biosimilar Portfolio: Amgen's own biosimilars (for Humira, Avastin, Herceptin) generate $2B+ annually and growing 15-20%.
  • •Otezla Growth: Acquired from Celgene for $13.4B, this oral psoriasis drug is expanding into new indications with sales approaching $3B.
  • •International Expansion: China and emerging markets represent 20% of revenue but growing 10%+ annually, driven by Prolia and Repatha uptake.

Risks & Challenges

  • •Biosimilar Erosion: Enbrel faces increasing competition from lower-cost biosimilars, with revenue declining 5-10% annually.
  • •MariTide Uncertainty: Obesity drug development is crowded (Novo Nordisk, Eli Lilly), and any safety issues in trials could derail the opportunity.
  • •Patent Cliffs: Otezla and Repatha face patent expiries in the early 2030s, requiring robust pipeline replacements.
  • •Regulatory Hurdles: FDA scrutiny of biologics pricing and accelerated approval pathways could delay launches or compress margins.
  • •Manufacturing Complexity: Biologics require massive capital investment and are vulnerable to supply chain disruptions, as seen during COVID-19.

Competitive Landscape

Amgen competes across multiple fronts. In inflammation, it faces biosimilar pressure from Pfizer, Samsung Bioepis, and others targeting Enbrel. In oncology, rivals include Bristol Myers Squibb (Opdivo), Merck (Keytruda), and emerging players like Mirati (KRAS inhibitors). The obesity market pits Amgen's MariTide against Novo Nordisk's Wegovy and Eli Lilly's Zepbound, both already generating multi-billion-dollar sales.

However, Amgen differentiates through manufacturing scale (few can produce biologics at its cost structure), scientific depth (40+ years of protein engineering expertise), and financial strength (the cash flow to outspend smaller biotech rivals on clinical trials and marketing). Under Bradway's leadership, Amgen has also embraced strategic acquisitions—Otezla ($13.4B), Five Prime Therapeutics ($1.9B), ChemoCentryx ($4B)—to bolster its pipeline when internal R&D faces gaps.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 3%+ dividend yield with growth potential
  • ✓Healthcare sector investors wanting large-cap biotech exposure
  • ✓Long-term investors (5+ years) betting on obesity/oncology pipelines
  • ✓Value investors attracted to forward P/E of 13.74 vs. 16-18x sector average
  • ✓Dividend growth investors (13 consecutive years of increases)

Less Suitable For

  • ✗Growth investors seeking explosive near-term returns (low revenue growth until MariTide)
  • ✗Short-term traders (binary clinical trial events create volatility)
  • ✗Risk-averse investors uncomfortable with drug development uncertainty
  • ✗ESG-focused investors concerned about drug pricing controversies

Investment Thesis

Amgen represents a compelling risk-reward proposition for patient investors. The stock trades at a valuation discount (forward P/E 13.74) despite having one of the industry's strongest balance sheets and cash flow profiles. While legacy drug erosion caps near-term growth, the MariTide obesity opportunity and LUMAKRAS expansion offer massive upside potential if trials succeed. The 3.11% dividend yield provides income while investors wait for pipeline catalysts to materialize.

Robert Bradway's disciplined capital allocation—prioritizing R&D, strategic M&A, and shareholder returns—has positioned Amgen to weather patent cliffs while pursuing transformative growth. The company's vertical integration and manufacturing prowess create sustainable competitive advantages that justify premium margins. For investors with a 3-5 year horizon, Amgen offers a rare combination: defensive income characteristics with asymmetric upside from obesity and oncology breakthroughs. The key question isn't whether Amgen will survive—it's whether MariTide and next-gen oncology assets will unlock the stock's full potential by 2028.

Conclusion

Conclusion

Amgen earns a cautious BUY rating for dividend growth and value investors with 5+ year horizons. The current valuation builds in significant pessimism, while the pipeline offers multiple shots on goal for transformative growth. Existing shareholders should hold through MariTide Phase 3 readouts (2026), while new investors can build positions gradually, viewing the 3%+ dividend as compensation for development risk. The stock is less suitable for growth-focused or short-term traders.
Bull Case
$380 (30% upside) – MariTide approved with blockbuster potential, LUMAKRAS expands, biosimilar portfolio accelerates
Base Case
$320 (10% upside) – MariTide succeeds but faces stiff competition, core business stabilizes, dividends continue growing
Bear Case
$240 (18% downside) – MariTide fails safety/efficacy endpoints, biosimilar erosion accelerates, pipeline disappoints

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