NASDAQ:AMGN
$59.84
(7/23 4:00PM)
| Open | 0 |
Mkt Cap | $60.6 Billion |
| High | 0 |
52Wk High | $66.51 |
| Low | 0 |
52Wk Low | $27.00 |
| Volume | 0 |
Avg Vol 10D | 8.7 Million |
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 4.27x, 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 $58.79, AMGN is 38% 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 their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AMGN, the current level of Cash Earnings compared to its historical levels helps identify where AMGN is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 24.32 and a historical low Cash Earnings per share ratio of 15.74, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AMGN? From the Ockham perspective, we are looking specifically at AMGN to see if the market is recognizing the huge disparity between AMGN’s past stock price to Cash Earnings ratio to today’s levels. At a difference of 43% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AMGN. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
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 Financial Media Discussion
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“…The middle class around the world. >> the chairwoman putting her money where her mouth is literally. Yum jumped 7%. >> we liked the engine on the desk for a very, very long time. AMGEN is a great stock, a great stock you want to own. >> the liquidator betting big on this biotech name as the company’s key experimental drug beat out a rival in the test. …” …more details…
“…The biggest gainer is wyn resorts. Positive data moving these higher on developmental drugs. Selling going on in AMGEN. Let’s go to sharon. >> and the big sell out that we have seen in oil over the last week or so continues. We are looking at lower prices …” …more details…
“…And then finally, we’ve got bio pharma hitting a double. Rheumatoid arthritis results, finally, seeing a bit of profit taking in AMGEN after a huge run-up in that stock yesterday. Erin, over to you in beautiful sun valley where I used to live in boise, actually. >> oh, I did not know that. That’s an interesting little piece of trivia. …” …more details…
“…Sales results. Costco, children’s place, and wet seal, to name a few. Yesterday, of course, it was biotech giant AMGEN that led the way slightly higher here at the nasdaq. Here today — or yesterday. Today we’ve got more positive news out of amylin farm …” …more details…
“…Motor are great energy savers, who’s going to get excited about a motor like they do about new drugs from AMGEN or a new operating system from google. They yield 3.2%. The dividend wasn’t an accidentally high yielder during the swoon and could get there …” …more details…
“…Already got at phase three that had so much following yesterday, you’re talking about a multibillion dollar drug. Then you look at the rest of the pipeline for AMGEN and the it’s not priced like the old days of biotech. We’re seeing pricing very the beet that is a 0 poth 4 so …” …more details…
“…>> straight from trading desk tonight is the one and only pit boss, aka pete watching biotech, big shares in AMGEN. We talked about that yesterday on the desk from positive results from the study. What are you looking at? >> the impressive thing, melissa, by the way, hello, amgenn has been a phenomenal …” …more details…
“…Defensive move. >> we have to leave it there. I could talk to you guys all day but they won’t let me. >> always a pleasure. >> here are some of the other stories we’re following on the closing bell ticker right now. AMGEN announcing its experimental osteoporosis drug met a key goal in the late stage it outperformed a rival drug by novartis in preventing bone injuries in breast cancer wall street has been viewing the drug candidate as AMGEN’s next big potential blockbuster. And take a look at how those shares are trading as a result, up 13%. Power producer nrg energy …” …more details…
“…They’ve had three consecutive quarters of losses and generally missed. We’ll see what happens today. Drug stocks again taking leadership as people look for a little bit of safe haven in earlier in the day AMGEN a huge winner popping up on an osteoporosis treatment for breast cancer treatments. Mike huckman blogged about that as far as technology in the afternoon, take a look at the that really indicates where you …” …more details…
“…>> number one, am jen. All the biotechs up today. The sector up 5%. AMGEN led the way. Their bone drug was superior to their competition drug. A banner day for stock up 14%. >> those are the seven late movers. …” …more details…
“…They’re saying they’re catered toward the lower end netbook but it’s a straight shot at we’ll see if it can get some traction, get some market share it is definitely a dropping of the gloves, if you will. AMGEN has held up beautifully today in terms of gains, up 14.8%. It’s basically been there the entire day. Their breast cancer drug had a fabulous trial. Basically, analysts saying it’s the best case scenario for a …” …more details…
“…The next hour. We’ll do that here on fox business. Family dollar store. We talk about the name all it’s the number two best performer in the s&p 500. The number one best performer is actually AMGEN, which is up almost 15% on the drug that we were telling you about earlier that helped slow bone complications in patients with advance interest cancer. AMGEN number one, family dollar is number two on the muss side. >> liz: bank of america down 50 volatile trading but interesting to watch. Thank you, nicole. …” …more details…
“…At $3.37 per unit, down another 2%. That is a 6 cent loss as of energy really falling sharply. All right. Let’s have a look at AMGEN for a second. I’m trying to look elsewhere other than gloom and doom. I want something that’s gone up and we’ve got it. AMGEN, a biotech stock, one of the big ones. Up 15%. Why? Well, some tests, clinical tests for its osteoporosis drug did well in a late-stage clinical trial. …” …more details…
“…Recent sessions. Over 570 million shares traded so far. We do have a significant mover in the green light right now. In the green, I should say. The drug maker is AMGEN. Let me go to the price of crude oil. Frankly that is more important. Let me jump ahead. Crude oil is down almost 4%. You’re at $60 per barrel. …” …more details…
“…>>> we want to go to mike huckman who has breaking news on >> it’s soaring inned after hours, because just a couple minutes ago, AMGEN, the world’s largest biotechnology company, announced results of a large, late-stage clinical trial for …” …more details…
“…The least. I think you take take basket I would own some in the teeth of it, united health care, I would want some biotech companies like AMGEN, so I think you need a mix even pharmaceuticals as they’re very cheap with and a lot of mergers. Research, as it relates to these …” …more details…
“…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…