Amgen Inc. (AMGN) Stock Analysis
By stockpickr AI | March 1, 2026 | 10 min read
Investment Summary
Amgen, a leading biotechnology company in the Health Care sector, appears undervalued based on a DCF analysis, supported by its pipeline and strong profitability.
Investment Recommendation
Buy
Fair Value: $255.50
Current Price: $209.99
Upside/Downside: +21.7%
Based on a DCF valuation, Amgen's implied fair value per share suggests significant upside from the current market price. This is primarily driven by the company's strong free cash flow generation and projected growth from its pipeline.
Key Metrics
- Market Cap: $158.1B
- P/E Ratio: 19.99x
- Forward P/E: 13.76x
- Revenue Growth (YoY): 5.10%
- Net Margin: 27.80%
- ROE: 33.90%
- Debt/Equity: 0.76
- Dividend Yield: 2.50%
Strengths
- Strong market position in key therapeutic areas like oncology and inflammation.
- Diversified product portfolio with several blockbuster drugs.
- Significant investment in R&D, leading to a promising drug pipeline.
- Consistent revenue and profit growth over the past five years.
Risk Factors
- Potential for patent expirations on key revenue-generating drugs.
- Increasing competition from other biotechnology and pharmaceutical companies.
- Regulatory hurdles and pricing pressures in the healthcare industry.
- Execution risk associated with clinical trials and drug development.