AMGN Analysis — TradeApes

AMGEN INC (AMGN)

Healthcare

$353.67 close · Apr 09, 2026

↑ Mild Premium (26/100)

⚠️

Overvalued +45.3%

Market cap (191.69B) is 45.3% above the bull-case DCF fair value (131.92B)

Apr 09

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 40

Operating Trend 55

Valuation 55

Capital Allocation 55

Risk 80

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ Decent ROIC — 10–20%, solid return on invested capital +1.3

↑ Decent FCF yield — 4–7%, reasonable cash return on price paid +1.3

Concerns

↓ High leverage — net debt/EBITDA between 3× and 5× -3.8

↓ Thin interest coverage — EBIT covers interest just 2–4× -1.3

Signal contribution: +5.9 from strengths -5.1 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	36.75B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	—
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	9.08B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	7.71B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	8.10B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	14.25B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	54.60B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	9.13B

Valuation

Market Cap	191.69B
Enterprise Value	237.16B
EV / Revenue	6.5x
EV / EBITDA	16.6x
P/E (TTM)	24.9x
Forward P/E (extrapolated)	9.1x
PEG	0.1x
P/FCF	23.7x
FCF Yield	4.2%

DCF Fair Value Range (base CAGR: 3.8%)

Bear

$182.76

Base

$209.34

Bull

$243.39

Bear $183 Current $353.67 (above range) Bull $243

Market is pricing in 10.8% FCF growth annually — base model assumes 3.8%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	—
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	38.8%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	21.0%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	22.0%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	10.0%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	88.5%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	9.87B	9.56B	9.18B	8.15B	9.09B	8.50B	8.39B	7.45B	8.20B	6.90B	6.99B	6.11B
Gross Profit ?Quarterly revenue minus cost of goods sold.	—	—	—	—	—	—	—	—	—	—	—	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	2.72B	2.53B	2.66B	1.18B	2.31B	2.05B	1.91B	991.0M	1.27B	2.02B	2.68B	1.92B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	1.33B	3.22B	1.43B	1.73B	627.0M	2.83B	746.0M	-113.0M	767.0M	1.73B	1.38B	2.84B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	7.12B	—	—	980.0M	9.94B	—	—	459.0M	6.64B	—	—	720.0M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.