Amgen Inc. (AMGN)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Amgen traded at $412.84, for a market value of $223.2B. It is a global drugmaker whose portfolio includes Enbrel, Otezla, Prolia, XGEVA, and Repatha. Filed results show recent improvement: FY2025, the year ended 2025-12-31, revenue was $36.8B versus $33.4B in FY2024, the year ended 2024-12-31; net income was $7.7B versus $4.1B. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $10.1B and net income $2.4B, compared with $9.2B and $1.4B in fiscal Q2 2025, the quarter ended 2025-06-30. Diluted EPS was $4.37 versus $2.65. That is real momentum. The portfolio offers some pricing power and switching costs, but pharmaceutical advantages are patent-dependent and can erode. Financial health is mixed. FairStock calculations show a Piotroski F-Score of 8/9, TTM free cash flow of $10.2B, a 4.6% FCF yield, and a 2.61% dividend yield. But debt-to-equity is 4.90, the Altman Z-Score is 1.61, and ROCE is 8.67%, while the FairStock ROE of 91.47% looks leverage-driven. Valuation is the rub. At the 2026-10-13 close, FairStock shows a P/E of 25.67, P/B of 19.10, and Graham Number of $88.44, leaving no margin of safety, shown by the -366.80% margin of safety. The PEG ratio of 0.39 is attractive only if strong growth persists. FairStock calls Amgen a SLOW GROWER, citing five-year profit growth of 1.2% a year and revenue growth of 7.6%, so I do not extrapolate the latest quarter forever. I see a decent business, but the price already assumes a lot.

In plain English: Amgen makes medicines for arthritis, psoriasis, osteoporosis, and other serious diseases. The business has grown sales and profits recently and produces a lot of cash, but it also carries heavy debt and earns only a modest return on the capital tied up in it. At the recent price, the shares look expensive compared with the company’s asset value and a conservative value yardstick.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer