Amgen Inc (AMGN, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $282.84, Amgen Inc has witnessed a daily gain of 0.38%, marked against a three-month change of -0.53%. A thorough analysis, underlined by the GF Score, suggests that Amgen Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 4/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high Growth rank and Momentum rank, and a slightly lower Financial strength rank, GuruFocus assigned Amgen Inc the GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Amgen Inc's Business
Amgen Inc, with a market cap of $151.58 billion and sales of $28.19 billion, is a leader in biotechnology-based human therapeutics. The company's operating margin stands at 28.01%, showcasing its efficiency in managing expenses relative to revenue. Amgen's flagship drugs include Epogen, Aranesp, Neupogen, Neulasta, Enbrel, and Otezla, which serve various medical needs from boosting red blood cells to treating inflammatory diseases. The introduction of cancer therapeutic Vectibix in 2006, bone-strengthening drugs Prolia/Xgeva, and the recent acquisition of Horizon Therapeutics have further diversified Amgen's portfolio, positioning it strongly within the biopharmaceutical sector.
Profitability Rank Breakdown
The Profitability Rank of 9/10 reflects Amgen Inc's impressive ability to generate profits compared to its peers. This high rank is indicative of a strong competitive advantage and efficient operations, which are crucial for sustaining growth and delivering value to shareholders.
Amgen Inc's solid Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence in the company's future prospects.
Growth Rank Breakdown
Amgen Inc's high Growth rank of 10/10 demonstrates the company's commitment to expanding its business. The 3-Year Revenue Growth Rate of 6.7% outperforms 50.55% of companies in the Drug Manufacturers industry. Additionally, the company's EBITDA has seen a significant increase, with a three-year growth rate of 7.7% and a five-year rate of 5.5%, highlighting Amgen's ability to grow earnings and reinvest in its operations effectively.
Conclusion: Amgen Inc's Path to Outperformance
Considering Amgen Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic initiatives, robust product pipeline, and strong market presence suggest that Amgen Inc is not only a leader in its field but also a compelling investment opportunity for those seeking growth and stability.
For investors looking to discover more companies with strong GF Scores, GuruFocus Premium members can utilize the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
