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Amgen Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Amgen has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Amgen's Piotroski F-Score or its related term are showing as below:

AMGN' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Amgen was 9. The lowest was 1. And the median was 6.


Amgen Piotroski F-Score Historical Data

The historical data trend for Amgen's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Amgen Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 8.00 6.00 7.00 4.00

Amgen Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 4.00 5.00 8.00

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Amgen Piotroski F-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Amgen's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 1884 + 1899 + 1476 + 1317 = $6,576 Mil.
Cash Flow from Operations was 2418 + 2808 + 2164 + 1930 = $9,320 Mil.
Revenue was 6706 + 6846 + 6238 + 6594 = $26,384 Mil.
Gross Profit was 5097 + 5128 + 4677 + 5084 = $19,986 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(59773 + 64993 + 61165 + 59196 + 59294) / 5 = $60884.2 Mil.
Total Assets at the begining of this year (Jun21) was $59,773 Mil.
Long-Term Debt & Capital Lease Obligation was $35,705 Mil.
Total Current Assets was $19,322 Mil.
Total Current Liabilities was $12,618 Mil.
Net Income was 2021 + 1615 + 1646 + 464 = $5,746 Mil.

Revenue was 6423 + 6634 + 5901 + 6526 = $25,484 Mil.
Gross Profit was 4862 + 5037 + 4411 + 4889 = $19,199 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(65011 + 64637 + 62948 + 62539 + 59773) / 5 = $62981.6 Mil.
Total Assets at the begining of last year (Jun20) was $65,011 Mil.
Long-Term Debt & Capital Lease Obligation was $28,458 Mil.
Total Current Assets was $19,099 Mil.
Total Current Liabilities was $14,585 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Amgen's current Net Income (TTM) was 6,576. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Amgen's current Cash Flow from Operations (TTM) was 9,320. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=6576/59773
=0.11001623

ROA (Last Year)=Net Income/Total Assets (Jun20)
=5746/65011
=0.08838504

Amgen's return on assets of this year was 0.11001623. Amgen's return on assets of last year was 0.08838504. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Amgen's current Net Income (TTM) was 6,576. Amgen's current Cash Flow from Operations (TTM) was 9,320. ==> 9,320 > 6,576 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=35705/60884.2
=0.58644115

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=28458/62981.6
=0.45184625

Amgen's gearing of this year was 0.58644115. Amgen's gearing of last year was 0.45184625. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=19322/12618
=1.53130449

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=19099/14585
=1.30949606

Amgen's current ratio of this year was 1.53130449. Amgen's current ratio of last year was 1.30949606. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Amgen's number of shares in issue this year was 537. Amgen's number of shares in issue last year was 576. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=19986/26384
=0.75750455

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=19199/25484
=0.75337467

Amgen's gross margin of this year was 0.75750455. Amgen's gross margin of last year was 0.75337467. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=26384/59773
=0.44140331

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=25484/65011
=0.3919952

Amgen's asset turnover of this year was 0.44140331. Amgen's asset turnover of last year was 0.3919952. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Amgen has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Amgen  (NAS:AMGN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Amgen Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Amgen's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Amgen Business Description

Amgen logo
Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive care products. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amgevita (biosimilar Humira).
Executives
Miller Derek officer: SVP, Human Resources ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Khosla Rachna officer: SVP, Business Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Ishrak Omar director 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Louie Linda H. officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Miles Amy E director
Grygiel Nancy A. officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Griffith Peter H. officer: EVP & CFO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Gordon Murdo officer: EVP Global Commercial Ops C/O BRISTOL-MYERS SQUIBB COMPANY 345 PARK AVE NEW YORK NY 10154
Reese David M officer: EVP, Research and Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Druker Brian director ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Holley Charles M director
Johnston Lori A officer: SVP, HR C/O AMGEN INC. ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Kullman Ellen Jamison director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Santos Esteban officer: EVP, Operations ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320

Amgen Headlines

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