Amgen Inc (AMGN, Financial), a leading player in the drug manufacturers industry, is currently trading at $245.67 with a market capitalization of $131.27 billion. The company's stock price has seen a gain of 6.49% today and an impressive 8.89% over the past four weeks. According to the GF Score, Amgen has a score of 85 out of 100, indicating good outperformance potential. This article will delve into the components of the GF Score and compare Amgen's performance with its main competitors.
Amgen's Financial Strength Analysis
The Financial Strength rank measures a company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. Amgen's Financial Strength rank is 4/10, indicating a moderate level of financial stability. The company's interest coverage is 5.43, and its debt to revenue ratio is 2.35. Its Altman Z score is 1.57, which is below the safe zone of 2.99, suggesting potential financial distress in the future.
Profitability Rank: A Strong Point for Amgen
Amgen's Profitability Rank is 9/10, indicating a high level of profitability. The company's operating margin is 34.31%, and its Piotroski F-Score is 7, suggesting a healthy financial situation. Despite a slight downtrend in the 5-year average operating margin (-4.70%), the company has consistently been profitable over the past 10 years, earning it a predictability rank of 3.5.
Growth Rank: Amgen Shows Promising Growth
Amgen's Growth Rank is 8/10, reflecting strong revenue and profitability growth. The company's 5-year revenue growth rate is 9.20%, and its 3-year revenue growth rate is 8.20%. Its 5-year EBITDA growth rate is 4.00%, indicating a steady increase in its business operations.
GF Value Rank: Amgen's Fair Valuation
The GF Value Rank of Amgen is 6/10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, which takes into account historical multiples and an adjustment factor based on past returns, growth, and future business performance estimates.
Momentum Rank: Room for Improvement
Amgen's Momentum Rank is 5/10, indicating moderate momentum. This rank is determined using the standardized momentum ratio and other momentum indicators, reflecting the stock's performance over the past 12 months.
Comparison with Competitors
When compared to its main competitors in the drug manufacturers industry, Amgen holds a strong position. Bristol-Myers Squibb Co (BMY, Financial) has a GF Score of 84 and a market cap of $126.67 billion. Gilead Sciences Inc (GILD, Financial) has a GF Score of 79 and a market cap of $99.25 billion. Pfizer Inc (PFE, Financial) has a GF Score of 86 and a market cap of $197.89 billion. More details can be found on the competitors page.
In conclusion, Amgen's strong GF Score of 85, high profitability rank, and promising growth rank make it a compelling choice for value investors. Despite some concerns regarding its financial strength and momentum, the company's overall performance and potential for outperformance are noteworthy. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.