AMGN Stock Report
2-Year Price History
Recent Price
(7/2 4:00PM)
-2.4%
$51.47
52-Week Price
$27.00 - $66.51
Market Capitalization
$52.1 Billion
Most Recent Dividend
$0.00
Ockham's Rating
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AMGN Revenue
As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, AMGN the high and low end of the Price to Sales per share ratios are 8.44x and 5.24x respectively.
Notice that AMGN's current Price to Sales per share ratio is 3.84x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $52.80, AMGN is 44% below where we would expect to see it. This will beneficially factor into our final analysis of AMGN as it is not often that this stock sinks to these levels.
AMGN Cash Earnings
Looking at AMGN specifically in their Cash Earnings capabilities, Ockham views AMGN as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for AMGN to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 24.32 and a 15.74 low over the same period.
Now that AMGN’s current price is $52.80 and its Price to Cash Earnings ratio is 10.37, we are very positive on its outlook from the cash earnings perspective. In fact, AMGN is now trading a full 49% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why AMGN has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
AMGN Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for AMGN to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard AMGN as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
The latest TV Media Discussion
“…And so it's most likely that the eventual plans and the eventual impacts will be less -- less and if you look at a company like AMGEN that you mentioned, you're -- you know, you've got 3.6% yield, 11 times 2010 earnings, stable, core business, and a really attractive >> you know, it's interesting. You talk about yields, and …” …more details…
“…>> about a month ago, got out of >> I didn't even know this. >> we got out of AMGEN. Time for "fast and furious." tomorrow should we be expected a …” …more details…
“…. the s&p up 15% since then. So where do we go from here? >> AMGEN is a monster. A major acquisitionsquition. I don't know if they have the chops to do it, but AMGEN is >> you like it? >> fine means I like it. >> you were born in 1983 or >> oh, come on. …” …more details…
“…A biotech makes its debut on the it's now the world's largest biotech and even bigger than merck. If you bought AMGEN that day, you'd be sitting on a 15,000% that's today in "fast money." >>> the recent performance certainly, not so wonderful. Only up 5% over the last three …” …more details…
“…Sixties that is gigantic but keep in mind piggyback earnings per share up and down when they go up they usually still be to the earnings AMGEN is another. Trading 2. Five times, it has eight buy recommendations going back june of last year. I think this is on the verge …” …more details…
“…But biotech came back with a pharma came back with a a lot of names we've been talking about on the show added last surge, xbi, which is the way to play the biotech name, AMGEN up again today. Got to love pharma, got to love biotech, and again, jon, I think it goes back to a rotation in asset allocation. >> abbott labs, as joe pointed out, the low back on april 15th. …” …more details…
“…Sherwin williams and home depot. All of them reversed the downward momentum they've had the last couple days. >> good point there. Move on to pharma and biotech. Pfizer and AMGEN made this the top-performing s&p sector of the >> let's talk biotech. Everybody knows this, trading one day you feel horrible, the next day you feel good. We all know about genzyme yesterday. Your brother which you don't …” …more details…
“…>> i'm going back to lumber. You have to love a name that's going lower when underlying commodities is going higher. I'm a buyer plum tree. >> AMGEN, still got to like the ten drugs in the final stages. They've got colorectal, prostate, across the board. You've got to like where they're AMGEN is in the right direction. The osteoporosis drug could be big for them. They have multiple multi-billion dollar drugs in the pipeline. That's got to be good for them. >> I feel the knives in my back. >> that was the final trade, but …” …more details…
“…Far, too fast. Logon to fastmoney.Cnbc.Com. You think. Also, health care shares the only s&p sector in the green as big pharma and the AMGEN upgrade we reported to you yesterday here on the desk, helping biotechs as a whole and also has helped that health care bill. Stumbling block in congress, the shares were up today. Is that something that's a barrier, the sort of unknown that's now off the table? >> I think with AMGEN today it was more about the report that was put out talking about the cancer drug and their ability to take revenue away from erbitux. You know, you look at that, that's a $2 billion industry. It was suggested today they could possibly pull $1 billion of that away. Listen, we've liked AMGEN on the desk for a very long time. I think AMGEN's a great stock, a great stock that you want to I like xbi as the exposure of biotech. I had a problem with another one we'll talk about later, but AMGEN, you clearly want to step ?> in. >> and it's a $50 billion biotech trading at the same valuation as johnson & johnson. That's incredible. They've got ten drugs in the final stages of phase three as far as the pipeline's concerned and a myriad of drugs between so, you love what you see as far as AMGEN's concerned right now going forward. $65 price tag right now by bernstein. That's probably about right. >> and another guy that got a lot of juice today, mentioned it …” …more details…
“…You saw intel was lower but really the semiconductor index is down 2%. Rambus is lower. Kla-tencor is down, as well. AMGEN upgraded. The target 65 from 57 there. Jen zooim is down 4%. They stopped production at a key plant in boston after a virus was detect there had and …” …more details…
“…Intel barely there, as is and apple is there by 1.5%. AMGEN up 4%, and general zin stopping after a virus was detected there. Let's go to bertha coombs. >> thanks very much, scott. As goes the dollar, where this market has been heading, …” …more details…
“…Coming out of the sector, genzyme shares off on a production halt that's going to impact supplies of two drugs, AMGEN upgraded, celgene moving modestly higher and knew pricing changes in the structure for sellers, so this'll be watching developments out of ebay and adobe systems out later this morning. Back over to you, alexis. …” …more details…
“…Cisco, just slightly to the down side. Am AMGEN updated to outperform at bernstein and the price target and finally sina, the chinese …” …more details…
“…Release of windows 7. Take a look at cisco this morning. It's up as well. AMGEN getting a nice price target there, 65, old one was 67 look at what goldman sachs is doing to sina, up 4%. …” …more details…
“…Because of swine flu, which made no sense. Mgm upgraded at bernstein. I saw a call on AMGEN yesterday from $65 from $57. Weyerhowser has a target price …” …more details…
“…>> we're going to talk about how burning hot tim seymour was dressed in a suit innist istanbul, but first reporting that AMGEN has been upgraded. A boost from sanford bernstein, any buyers of AMGEN here? Anybody who favors it? I told you when I dumped out my >> I was a little surprised because abbott had positive news because they're starting to beat …” …more details…
“…Solidly up for the year 2009. You like the ishares dow we just showed that, the healthcare basket of names. In it, I like to sometimes break it down for viewers. Abbott lab, AMGEN, bristol-myers, giliad, schering-plough wyeth, just to let you know you can buy basket of all names to spread out the risk. …” …more details…
“…That's how big the bear market route has been. I like taking a look at some of the stocks that are still in megative territory on the -- negative territory, where it's becton dickinson or AMGEN. I just don't think that the health reform is going to be as negative for the stock as the prices indicate right that's why we're looking at those. >> cheryl: scott, as we look to the next few months here and you look to sectors that …” …more details…
“…Positive territory all day, one sector strong, biotech. >> matt just talked about it. There are going to have to be other leadership names. And you look at clearly AMGEN had those horrible you saw the biotech space kind of roll over. The rally since march 9th. But if you are an asset manager right now, you are looking for …” …more details…
“…General motors of course being the key one to follow. Dow jones has said they have been watching it very closely. We're waiting to see what may go there's been all kinds of speculation everything from apple to AMGEN to amazon just to name a few and how about just the obvious replacement which could be ford. Of course any name that goes into the dow jones industrial average will get scooped up by portfolio managers those who …” …more details…
“…And apple, I threw in apple the speck lays has begun, who goes into the dow jones industrial average when general motors comes out? Will it be amazon, AMGEN, vista, let's look how ford is faring, a lot of folks say, hey, a nice replacement for general motors put in a different auto maker, another big american company up …” …more details…
“…So, certainly, that is our big industrial average and the question is, if and when they will pull general motors out of the dow and speculation that maybe some of the other names might be apple, AMGEN or amazon and sometimes they only change one dow components, they change multiple dow components. That will be something to watch today and monday as well although the trading day. As far as the gainers, we're …” …more details…
“…The dow joneses. >> I think apple, probably. >> merck and pfizer, pfizer, already have two health care names. >> these are too thinly traded just like apple. And AMGEN is a thinly traded not a lot of volume behind it. They're looking for something that will stabilize, be a stable >> we need to explain who john john prestbo is the man who sits …” …more details…
“…So you may see dow jones not just change general motors, but a few of the names. >> I think pepsi is a front runner and phillip morris could >> i'm curious about your AMGEN, not one name i've heard bantered about that's interesting. >> I ripped that off from robert he's been talking to john prestbo and he's in there with …” …more details…
“…It's inevitable that they've acknowledged the fact if the government takes ownership of general motors that they will indeed make a change. I think it's going to be it's going to be an a-stock, apple, AMGEN or what was my third one amazon. Now, the traders on the floor have been saying amazon, right? We've been hearing apple and ray hennessey mentioned apple, also, saying that this is something all americans buy, everybody is involved with that one and also, AMGEN, now, we were hearing that they maybe want a healthcare play in there. These are the three names that of course, no, I have to tell you, dow jones industrials did not say this, dow jones did not …” …more details…
“…You know, it's been in the dow for 84 years, alexis, could possibly, you may have to replace studebaker when it went in the second time and could be replaced by rival ford, but i'm going to go with AMGEN because when I talked to john prestbo earlier this month, he told me that health care was underweight as of a month ago so AMGEN could bring in, biotech could bring in another pharma play there and …” …more details…
“…>> caterpillar i'm long and i'm getting longer. >> I think schlumberger has room to 57. >> ira sohn investment research conference pr value investors. >> AMGEN's back above 50. Take a look. >> i'm melissa lee. You're watching "fast money." see you back here tomorrow 5:00 p.M. For the big show. >> tomorrow, the sizzling summer how high will oil go? As america hits the road, get …” …more details…
“…>> like what? Which ones? >> some of the hmos, united we'd also point to AMGEN, aetna is another name we've been >> rich, that's not a difference from what I expected. We expected you two to have what do you think? >> let me say, bob, it's great …” …more details…
“…Isis pharmaceuticals. >> it's like alice therapeutic. It is strictly, it is strictly a spec. I will endorse the spec in this as opposed to an AMGEN or I think that isis is a legitimate spec, and I would buy the stock. >> because I think we're in a very, very strong market. Oh, wow. I think that's it. …” …more details…
“…>> I like your attitude. Must be from orlando, celebrating that magic victory over the k.G.-less selects. >> caller: I read it's a buyer's market in big pharma but what about small biotech like AMGEN? Do you think their new osteoporosis drug will provide a catalyst for this stock to move higher and mend my broken >> mary, I don't know. Boy, i'll tell you, your portfolio, we may need to take it in. Maybe a compound fracture. I think AMGEN's quarter was nothing to write home about and that group remains under tremendous pressure. It's almost as though obama's taken issue with high credit card prices and biotech, and I cannot recommend AMGEN in good conscience when I have a stock like lilly that has a special or let me tell you something, I think i've been buying for my …” …more details…
“…You start thinking AMGEN a good you look at ibm and it's the only one trading in triple digits at a mere $104. Citi at $3.50, these bank stocks …” …more details…
“…They're up nearly 6%. They were up double digits at express scripts, up 6.5% today. The one negative news, AMGEN, in a court case right now. Unfavorable court ruling, not over, enough to drag them down. …” …more details…
“…Based on what the president proposes? >> if you watched the show last week before I went to california, I actually got stopped out of AMGEN, I said karen, I got stopped out of my stock, go buy it. I still like biotech. I think that's your trade. >> thanks so much. Thanks, melissa, too. We'll see you tonight. …” …more details…
“…Amazon meantime, up 2%. The story coming out of their earnings is kendell related. It managed to beat all of the most optimistic expectations that that company. Meantime, AMGEN, interesting story, it's up 3% right now. It did come out very short of deutsche bank calling it the …” …more details…
“…This is exciting, just as I listen here in the studio as these reports come out. The thing that comes to mind is these very large companies like microsoft and AMGEN are having a very tough time growing you're actually reporting that …” …more details…
“…Our favorite. >> okay. Matt nesto is following this story on amge. To him with the numbers and the headlines behind the numbers. $1.08 on AMGEN. >> thanks very much. That's interesting. Not surprised we're seeing the stock weaken up. Up about 3% here. Amge come amge AMGEN coming in. $3.31 billion in revenue, that's going to be looking to be about $300 million light of estimates two of their top-selling drugs I …” …more details…
“…X out big pharma, health care is up 2%. The first time all ten sectors of the s&p 500 have seen a year to year decline. Health care the leader. >> AMGEN reported a moment ago. AMGEN was estimated at $1.15 a reporting a profit of $1 .08 a the revenue expected at $3.6 coming out at $3.3 billion. Biotech and health care. What do you see happening in the area? AMGEN numbers coming out here. The stock moving fractionally in the extended hours, close to though the eps looks slightly lower than estimates. >> maria, we like technology. We like discretionary. …” …more details…
“…Then at the end -- the no pen tum at the end of the day may be something about what we're about to hear on earnings. See you a little later. >>> the earnings continuing this hour. AMGEN, american express, microsoft and amazon.Com scheduled to release quarterly numbers in the next few minutes. More on how the quarter earnings period is shaping up and how it …” …more details…
“…As next week and perhaps set the tone for other automakers. >>> ready for a flood of earnings to come your way instant analysis on numbers from microsoft, amazon.Com, AMGEN, american express, all of which you'll read about tomorrow in the papers. The dow jones industrial average …” …more details…
“…>> I think you follow dan niles on this one. It's going to take a huge number to make this thing rally. I'd probably be fading this one. >> I think earn rgz a theme >> go with it. >> AMGEN reporting earnings tomorrow after the bell. Investors looking for a profit a rise 2% year over year. >> the stock was down 2%. This is a biotech with at least six major drugs. …” …more details…