NASDAQ · Healthcare

Amgen Inc.

AMGN · Drug Manufacturers - General

$322.41

▼ -7.41 (-2.25%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Amgen Inc. at $322.41.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 67.2%

Operating Margin 24.7%

Net Income Margin 21.0%

Fin. Health D

Years to Pay Off Debt 7.1 yrs

Working Capital vs Long-Term Debt -$46.4B

Working Capital $3.6B

Valuation F

Margin of Safety 0.0%

Price-to-Book 20.10x

Cash Flow B

Free Cash Flow $8.1B

CapEx % of Net Income 24.1%

Owner Earnings $14.7B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $174.0B

Enterprise Value $223.3B

P/E (TTM) 22.42

Dividend Yield 2.93%

Exchange NASDAQ

Key Margins

Gross Profit 67.2%

Operating Margin 24.7%

Net Margin 21.0%

Company Info

Sector Healthcare

Industry Drug Manufacturers - General

Employees 31500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Amgen Inc. at $322.41.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $322.41, the stock trades at a 350% premium to its Graham Number of $71.67. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Amgen Inc.

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel for the treatment of rheumatoid arthritis, plaque psoriasis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout. It also markets other products, including PROLIA, REPATHA, OTEZLA, ENBREL, EVENITY, XGEVA, TEPEZZA, BLINCYTO, NPLATE, TEZSPIRE, KYPROLIS, ARANESP, KRYSTEXXA AND VECTIBIX, MVASI, PAVBLU, UPLIZNA, IMDELLTRA/IMDYLLTRA, AMJEVITA/AMGEVITA, TAVNEOS, NEULASTA, LUMAKRAS/LUMYKRAS, RAVICTI, PARSABIV, AIMOVIG, WEZLANA/WEZENLA, AND PROCYSBI. The company serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors. The company has collaboration agreements with AstraZeneca plc for the development and commercialization of TEZSPIRE; BEONE MEDICINES LTD. to develop and commercialize Aimovig; UCB for the development and commercialization of EVENITY; Kyowa Kirin Co., Ltd. for rocatinlimab development and commercialization; and BeiGene, Ltd. for oncology products expansion and development. The company was incorporated in 1980 and is headquartered in Thousand Oaks, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	67.2% ▲	61.5%	70.0%	75.7%	N/A
Operating Margin %	24.7% ▲	21.7%	28.0%	36.3%	N/A
Net Income %	21.0% ▲	12.2%	23.8%	24.9%	N/A
Diluted EPS	14.23 ▲	7.56	12.49	12.11	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$90.6B	$91.8B	$97.2B	$65.1B	N/A
Total Debt	$54.6B ↓	$60.1B	$64.6B	$38.9B	N/A
Working Capital	$3.6B ▼	$5.9B	$11.9B	$6.5B	N/A
Years to Pay Debt	7.08	14.69	9.62	5.94	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$8.1B ▼	$10.4B	$7.4B	$8.8B	N/A
Owner Earnings	$14.7B	$10.8B	$11.9B	$10.9B	N/A
CapEx % of Net Income	24.1%	26.8%	16.6%	14.3%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	16,898,000	13,356,000	14,801,000	12,169,000
Total Unusual Items			0	0	-1,505,000
Total Unusual Items Excluding Goodwill			0	0	-1,505,000
Net Income From Continuing Operation Net Minority Interest	7,711,000	4,090,000	6,717,000	6,552,000
Reconciled Depreciation	5,167,000	5,592,000	4,071,000	3,417,000
Reconciled Cost Of Revenue	12,037,000	12,858,000	8,451,000	6,406,000
EBITDA	16,898,000	13,356,000	14,801,000	12,169,000
EBIT	11,731,000	7,764,000	10,730,000	8,752,000
Net Interest Income	-2,755,000	-3,155,000	-2,875,000	-1,406,000
Interest Expense	2,755,000	3,155,000	2,875,000	1,406,000
Normalized Income	7,711,000	4,090,000	6,717,000	6,552,000
Net Income From Continuing And Discontinued Operation	7,711,000	4,090,000	6,717,000	6,552,000
Total Expenses	27,671,000	26,166,000	20,293,000	16,757,000
Total Operating Income As Reported	9,080,000	7,258,000	7,897,000	9,566,000
Diluted Average Shares	542,000	541,000	538,000	541,000
Basic Average Shares	538,000	537,000	535,000	538,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	7,711,000	4,090,000	6,717,000	6,552,000
Net Income Common Stockholders	7,711,000	4,090,000	6,717,000	6,552,000
Net Income	7,711,000	4,090,000	6,717,000	6,552,000
Net Income Including Noncontrolling Interests	7,711,000	4,090,000	6,717,000	6,552,000
Net Income Continuous Operations	7,711,000	4,090,000	6,717,000	6,552,000
Tax Provision	1,265,000	519,000	1,138,000	794,000
Pretax Income	8,976,000	4,609,000	7,855,000	7,346,000
Other Income Expense	2,651,000	506,000	2,833,000	-814,000
Other Non Operating Income Expenses	2,651,000	506,000	2,833,000	-814,000
Special Income Charges			0	0	-1,505,000
Other Special Charges					1,505,000
Net Non Operating Interest Income Expense	-2,755,000	-3,155,000	-2,875,000	-1,406,000
Interest Expense Non Operating	2,755,000	3,155,000	2,875,000	1,406,000
Operating Income	9,080,000	7,258,000	7,897,000	9,566,000
Operating Expense	15,634,000	13,308,000	11,842,000	10,351,000
Other Operating Expenses	1,312,000	248,000	879,000	503,000
Research And Development	7,272,000	5,964,000	4,784,000	4,434,000
Selling General And Administration	7,050,000	7,096,000	6,179,000	5,414,000
Gross Profit	24,714,000	20,566,000	19,739,000	19,917,000
Cost Of Revenue	12,037,000	12,858,000	8,451,000	6,406,000
Total Revenue	36,751,000	33,424,000	28,190,000	26,323,000
Operating Revenue	35,148,000	32,026,000	26,910,000	24,801,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	538,800	537,000	535,400	534,000
Share Issued	538,800	537,000	535,400	534,000
Net Debt	45,475,000	48,126,000	53,669,000	31,316,000
Total Debt	54,604,000	60,099,000	64,613,000	38,945,000
Tangible Book Value	-32,298,000	-40,459,000	-45,038,000	-27,948,000
Invested Capital	63,262,000	65,976,000	70,845,000	42,606,000
Working Capital	3,568,000	5,931,000	11,940,000	6,499,000
Net Tangible Assets	-32,298,000	-40,459,000	-45,038,000	-27,948,000
Common Stock Equity	8,658,000	5,877,000	6,232,000	3,661,000
Total Capitalization	58,663,000	62,426,000	69,402,000	41,015,000
Total Equity Gross Minority Interest	8,658,000	5,877,000	6,232,000	3,661,000
Stockholders Equity	8,658,000	5,877,000	6,232,000	3,661,000
Gains Losses Not Affecting Retained Earnings	-258,000	-66,000	-289,000	-231,000
Other Equity Adjustments	-56,000	308,000	9,000	117,000
Foreign Currency Translation Adjustments	-202,000	-374,000	-298,000	-348,000
Retained Earnings	-25,107,000	-27,590,000	-26,549,000	-28,622,000
Capital Stock	34,023,000	33,533,000	33,070,000	32,514,000
Common Stock	34,023,000	33,533,000	33,070,000	32,514,000
Total Liabilities Net Minority Interest	81,928,000	85,962,000	90,922,000	61,460,000
Total Non Current Liabilities Net Minority Interest	56,439,000	62,863,000	72,530,000	45,773,000
Other Non Current Liabilities	2,378,000	2,349,000	2,326,000	2,651,000
Tradeand Other Payables Non Current	2,690,000	2,349,000	4,680,000	5,757,000
Non Current Deferred Liabilities	1,366,000	1,616,000	2,354,000	11,000
Non Current Deferred Taxes Liabilities	1,366,000	1,616,000	2,354,000	11,000
Long Term Debt And Capital Lease Obligation	50,005,000	56,549,000	63,170,000	37,354,000
Long Term Debt	50,005,000	56,549,000	63,170,000	37,354,000
Current Liabilities	25,489,000	23,099,000	18,392,000	15,687,000
Current Debt And Capital Lease Obligation	4,599,000	3,550,000	1,443,000	1,591,000
Current Debt	4,599,000	3,550,000	1,443,000	1,591,000
Pensionand Other Post Retirement Benefit Plans Current	1,437,000	1,329,000	1,381,000	1,099,000
Current Provisions				548,000	542,000
Payables And Accrued Expenses	19,453,000	18,220,000	15,568,000	12,997,000
Current Accrued Expenses	15,349,000	12,451,000	11,109,000	9,093,000
Interest Payable		867,000	936,000	470,000
Payables	4,104,000	5,769,000	4,459,000	3,904,000
Dividends Payable	1,358,000	1,278,000	1,205,000	1,137,000
Total Tax Payable	379,000	2,583,000	1,664,000	1,195,000
Income Tax Payable	379,000	2,583,000	1,664,000	1,195,000
Accounts Payable	2,367,000	1,908,000	1,590,000	1,572,000
Total Assets	90,586,000	91,839,000	97,154,000	65,121,000
Total Non Current Assets	61,529,000	62,809,000	66,822,000	42,935,000
Other Non Current Assets	12,660,000	9,930,000	9,611,000	5,899,000
Goodwill And Other Intangible Assets	40,956,000	46,336,000	51,270,000	31,609,000
Other Intangible Assets	22,276,000	27,699,000	32,641,000	16,080,000
Goodwill	18,680,000	18,637,000	18,629,000	15,529,000
Net PPE	7,913,000	6,543,000	5,941,000	5,427,000
Accumulated Depreciation	-11,120,000	-10,388,000	-9,808,000	-9,283,000
Gross PPE	19,033,000	16,931,000	15,749,000	14,710,000
Construction In Progress	3,390,000	2,053,000	1,550,000	1,213,000
Other Properties	5,220,000	4,996,000	4,813,000	4,684,000
Machinery Furniture Equipment	5,143,000	4,733,000	4,540,000	4,320,000
Buildings And Improvements	4,932,000	4,803,000	4,507,000	4,201,000
Land And Improvements	348,000	346,000	339,000	292,000
Current Assets	29,057,000	29,030,000	30,332,000	22,186,000
Other Current Assets	1,188,000	1,138,000	281,000	355,000
Prepaid Assets	2,945,000	2,139,000	1,647,000	1,204,000
Inventory	6,225,000	6,998,000	9,518,000	4,930,000
Finished Goods	1,885,000	2,060,000	2,778,000	1,004,000
Work In Process	3,425,000	4,120,000	5,747,000	3,098,000
Raw Materials	915,000	818,000	993,000	828,000
Receivables	9,570,000	6,782,000	7,942,000	6,392,000
Duefrom Related Parties Current		521,000	502,000	700,000	780,000
Taxes Receivable		198,000	172,000	129,000	164,000
Accounts Receivable	9,570,000	6,782,000	7,268,000	5,563,000
Cash Cash Equivalents And Short Term Investments	9,129,000	11,973,000	10,944,000	9,305,000
Other Short Term Investments			0	1,676,000	48,000
Cash And Cash Equivalents	9,129,000	11,973,000	10,944,000	7,629,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	8,100,000	10,394,000	7,359,000	8,785,000
Repurchase Of Capital Stock	0	-200,000	0	-6,360,000
Repayment Of Debt	-5,000,000	-3,600,000	-1,454,000	0
Issuance Of Debt	0	0	27,777,000	6,919,000
Capital Expenditure	-1,858,000	-1,096,000	-1,112,000	-936,000
End Cash Position	9,129,000	11,973,000	10,944,000	7,629,000
Beginning Cash Position	11,973,000	10,944,000	7,629,000	7,989,000
Changes In Cash	-2,844,000	1,029,000	3,315,000	-360,000
Financing Cash Flow	-10,859,000	-9,415,000	21,048,000	-4,037,000
Cash Flow From Continuing Financing Activities	-10,859,000	-9,415,000	21,048,000	-4,037,000
Net Other Financing Charges	-735,000	-783,000	-719,000	-400,000
Cash Dividends Paid	-5,124,000	-4,832,000	-4,556,000	-4,196,000
Common Stock Dividend Paid	-5,124,000	-4,832,000	-4,556,000	-4,196,000
Net Common Stock Issuance	0	-200,000	0	-6,360,000
Common Stock Payments	0	-200,000	0	-6,360,000
Net Issuance Payments Of Debt	-5,000,000	-3,600,000	26,323,000	6,919,000
Net Long Term Debt Issuance	-5,000,000	-3,600,000	26,323,000	6,919,000
Long Term Debt Payments	-5,000,000	-3,600,000	-1,454,000	0
Long Term Debt Issuance	0	0	27,777,000	6,919,000
Investing Cash Flow	-1,943,000	-1,046,000	-26,204,000	-6,044,000
Cash Flow From Continuing Investing Activities	-1,943,000	-1,046,000	-26,204,000	-6,044,000
Net Other Investing Changes	-32,000	50,000	224,000	100,000
Net Investment Purchase And Sale	0	0	1,673,000	-1,369,000
Sale Of Investment	0	0	1,673,000	1,218,000
Purchase Of Investment		0	-1,000	-2,587,000	-8,900,000
Net Business Purchase And Sale	-53,000	0	-26,989,000	-3,839,000
Sale Of Business				130,000	0
Purchase Of Business	-53,000	0	-26,989,000	-3,839,000
Net PPE Purchase And Sale	-1,858,000	-1,096,000	-1,112,000	-936,000
Purchase Of PPE	-1,858,000	-1,096,000	-1,112,000	-936,000
Operating Cash Flow	9,958,000	11,490,000	8,471,000	9,721,000
Cash Flow From Continuing Operating Activities	9,958,000	11,490,000	8,471,000	9,721,000
Change In Working Capital	-1,978,000	2,365,000	-484,000	-733,000
Change In Other Working Capital	499,000	92,000	953,000
Change In Other Current Liabilities	-156,000	-51,000	-222,000	-182,000
Change In Other Current Assets	-1,267,000	-652,000	-564,000	258,000
Change In Payables And Accrued Expense	736,000	3,000	-127,000	679,000
Change In Accrued Expense	2,065,000	1,194,000	935,000	943,000
Change In Payable	-1,329,000	-1,191,000	-1,062,000	-264,000
Change In Account Payable	428,000	312,000	-402,000	154,000
Change In Tax Payable	-1,757,000	-1,503,000	-660,000	-418,000
Change In Income Tax Payable	-1,757,000	-1,503,000	-660,000	-418,000
Change In Inventory	886,000	2,532,000	491,000	-742,000
Change In Receivables	-2,676,000	441,000	-1,015,000	-746,000
Changes In Account Receivables	-2,676,000	441,000	-1,015,000	-746,000
Other Non Cash Items	149,000	-177,000	-277,000	-303,000
Stock Based Compensation	494,000	530,000	431,000	401,000
Asset Impairment Charge	1,200,000	159,000	851,000
Deferred Tax	-721,000	-1,228,000	-1,273,000	-1,198,000
Deferred Income Tax	-721,000	-1,228,000	-1,273,000	-1,198,000
Depreciation Amortization Depletion	5,167,000	5,592,000	4,071,000	3,417,000
Depreciation And Amortization	5,167,000	5,592,000	4,071,000	3,417,000
Depreciation	5,167,000	5,592,000	4,071,000	3,417,000
Operating Gains Losses	-2,064,000	159,000	-1,565,000	1,585,000
Earnings Losses From Equity Investments		-10,000	11,000	891,000	33,000
Gain Loss On Investment Securities	-2,064,000	159,000	-1,565,000	127,000
Gain Loss On Sale Of Business		0	0	567,000	0
Net Income From Continuing Operations	7,711,000	4,090,000	6,717,000	6,552,000

These metrics estimate what Amgen Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$71.67

Margin of Safety

Market Cap ÷ Company Value

6.78

P/B Ratio

20.10

Warren's Owner Earnings

$14.7B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$36.8B

vs > $1.5B revenue

❌ Strong Financial Condition

1.14x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.93%

vs Uninterrupted dividends

❌ Earnings Growth

+17.5% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

22.4x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

20.10x P/B (P/E×P/B: 450.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-97.97

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$186.94

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	24.1%	26.8%	16.6%	14.3%	N/A
Repurchase of Capital Stock	$0M	-$200M	$0M	-$6.4B	N/A
Free Cash Flow	$8.1B ▼	$10.4B ▲	$7.4B ▼	$8.8B •	N/A •
Warren's Owner Earnings	$14.7B	$10.8B	$11.9B	$10.9B	N/A

Peers & Industry

No auto-detected peers for Drug Manufacturers - General. You can manually compare AMGN against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.22%

Low — management has little skin in the game

Return on Equity (ROE)

89.1%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

8.5%

Strong — management uses assets efficiently

Debt Trend YoY

-9.1% YoY

Debt is declining — management is deleveraging

Leadership Team

Robert Bradway

Chairman & CEO

Age 62

Pay: $6,693,535

0.087% of net income

Peter Griffith

Executive VP & CFO

Age 66

Pay: $3,311,180

0.043% of net income

Murdo Gordon

Executive Vice President of Global Commercial Operations

Age 58

Pay: $3,223,764

0.042% of net income

James Bradner

Executive Vice President of Research & Development

Age 53

Pay: $3,840,115

0.050% of net income

Esteban Santos

Executive Vice President of Operations

Age 57

Pay: $3,006,074

0.039% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.16%	54,838,826
Blackrock Inc.	8.78%	47,396,138
State Street Corporation	5.67%	30,591,403
Capital World Investors	4.28%	23,097,711
Capital International Investors	3.37%	18,186,270
Morgan Stanley	2.92%	15,744,528
Geode Capital Management, LLC	2.65%	14,303,294
Charles Schwab Investment Management, Inc.	2.19%	11,811,045

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

0.43

Low volatility — more stable than the market

Short Interest

2.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

6.24x

High leverage — significant financial risk

Current Ratio

1.26x

Adequate liquidity

52-Week Price Range

Low: $261.43 Current: $322.41 High: $391.29

Currently at 47% of 52-week range

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