📊 AMGN Key Takeaways
Is Amgen Inc. (AMGN) a Good Investment?
AMGEN demonstrates strong fundamental operations with robust 10% revenue growth, exceptional 88.2% EPS growth, and industry-leading profit margins (55% gross, 30.9% operating). However, the elevated debt-to-equity ratio of 6.24x and interest coverage of 4.1x introduce meaningful leverage risk that warrants caution despite solid free cash flow generation of $1.5B.
Amgen shows solid fundamental momentum, with double-digit revenue growth, a sharp rebound in net income and EPS, and strong free cash flow generation. However, the balance sheet is heavily levered, interest coverage is only moderate, and ROE is flattered by a small equity base, which tempers the quality of the earnings recovery. Overall, the business appears fundamentally resilient, but financial risk keeps the profile balanced rather than clearly aggressive.
Amgen Inc. Key Strengths (AMGN)
- Exceptional EPS growth of 88.2% YoY with 10% revenue growth demonstrates operational leverage and margin expansion
- Industry-leading profitability with 55% gross margin and 30.9% operating margin indicating strong pricing power and operational efficiency
- Robust free cash flow generation at $1.5B annually (17.1% FCF margin) with solid operating cash flow of $2.2B provides financial flexibility and capital allocation options
- Strong ROE of 19.8% demonstrates effective use of shareholder capital
- Substantial cash position of $12.0B provides liquidity buffer for operations and M&A
- Revenue grew 10.0% year over year, indicating continued top-line expansion
- Free cash flow of $8.10B and a 22.0% FCF margin support operational quality and financial flexibility
- Operating margin of 24.7% and net margin of 21.0% show strong earnings conversion despite a complex operating environment
AMGN Stock Risks: Amgen Inc. Investment Risks
- Dangerously high debt-to-equity ratio of 6.24x indicates excessive financial leverage and elevated refinancing risk
- Interest coverage ratio of 4.1x leaves limited cushion for earnings deterioration or rising interest rates
- Low ROA of 2.0% despite $92.5B asset base suggests capital efficiency concerns or asset impairment risks
- Biotech/pharma sector exposure to patent cliffs, regulatory changes, and pricing pressure from policymakers
- R&D-dependent business model requiring continuous innovation with uncertain pipeline success rates
- High leverage, with $54.60B of long-term debt and debt-to-equity of 6.31x, increases balance-sheet risk
- Interest coverage of 3.3x leaves limited cushion if earnings weaken or financing costs stay elevated
- ROE of 89.1% is likely distorted by the low equity base, making headline profitability look stronger than underlying capital strength
Key Metrics to Watch
- Debt-to-equity ratio trajectory and deleveraging progress
- Operating cash flow sustainability and free cash flow margins
- Interest coverage ratio and debt service capacity amid rate environment changes
- Pipeline advancement and R&D productivity metrics
- Revenue growth sustainability and market share trends in key therapeutic areas
- Debt reduction and interest coverage improvement
- Sustained free cash flow and operating margin performance
Amgen Inc. (AMGN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Amgen Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AMGN Profit Margin, ROE & Profitability Analysis
AMGN vs Healthcare Sector: How Amgen Inc. Compares
How Amgen Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amgen Inc. Stock Overvalued? AMGN Valuation Analysis 2026
Based on fundamental analysis, Amgen Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Amgen Inc. Balance Sheet: AMGN Debt, Cash & Liquidity
AMGN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amgen Inc.'s revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.49 reflects profitable operations.
AMGN Revenue Growth, EPS Growth & YoY Performance
AMGN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.1B | $1.7B | $3.20 |
| Q3 2025 | $8.5B | $2.8B | $5.22 |
| Q2 2025 | $8.4B | $633.0M | $1.17 |
| Q1 2025 | $7.4B | -$113.0M | $-0.21 |
| Q3 2024 | $6.9B | -$113.0M | $3.22 |
| Q2 2024 | $7.0B | -$113.0M | $1.17 |
| Q1 2024 | $6.1B | -$113.0M | $-0.21 |
| Q3 2023 | $6.7B | $1.3B | $3.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amgen Inc. Dividends, Buybacks & Capital Allocation
AMGN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amgen Inc. (CIK: 0000318154)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AMGN
What is the AI rating for AMGN?
Amgen Inc. (AMGN) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMGN's key strengths?
Claude: Exceptional EPS growth of 88.2% YoY with 10% revenue growth demonstrates operational leverage and margin expansion. Industry-leading profitability with 55% gross margin and 30.9% operating margin indicating strong pricing power and operational efficiency. ChatGPT: Revenue grew 10.0% year over year, indicating continued top-line expansion. Free cash flow of $8.10B and a 22.0% FCF margin support operational quality and financial flexibility.
What are the risks of investing in AMGN?
Claude: Dangerously high debt-to-equity ratio of 6.24x indicates excessive financial leverage and elevated refinancing risk. Interest coverage ratio of 4.1x leaves limited cushion for earnings deterioration or rising interest rates. ChatGPT: High leverage, with $54.60B of long-term debt and debt-to-equity of 6.31x, increases balance-sheet risk. Interest coverage of 3.3x leaves limited cushion if earnings weaken or financing costs stay elevated.
What is AMGN's revenue and growth?
Amgen Inc. reported revenue of $8.6B.
Does AMGN pay dividends?
Amgen Inc. pays dividends, with $1,358.0M distributed to shareholders in the trailing twelve months.
Where can I find AMGN SEC filings?
Official SEC filings for Amgen Inc. (CIK: 0000318154) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMGN's EPS?
Amgen Inc. has a diluted EPS of $3.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AMGN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Amgen Inc. has a A grade with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AMGN stock overvalued or undervalued?
Valuation metrics for AMGN: ROE of 19.8% (sector avg: 15%), net margin of 21.1% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is AMGN's AI grade for 2026?
Our dual AI analysis gives Amgen Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AMGN's free cash flow?
Amgen Inc.'s operating cash flow is $2.2B, with capital expenditures of $712.0M. FCF margin is 17.1%.
How does AMGN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 21.1% (avg: 12%), ROE 19.8% (avg: 15%), current ratio 1.26 (avg: 2).
Is Amgen Inc. carrying too much debt?
AMGN has a debt-to-equity ratio of 6.24x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.26 suggests adequate short-term liquidity.