Amgen, Inc. (NASDAQ:AMGN)

CAPS Rating: 4 out of 5

A biotechnology company which discovers, develops, manufactures and markets human therapeutics based on advances in cellular and molecular biology.

Recs

1
Player Avatar FreeMortal (29.28) Submitted: 12/23/2009 11:14:26 AM : Outperform Start Price: $54.07 AMGN Score: +47.88

Steadily growing earnings. Excellent margins and ROE. PE is fair, but it looks like this will drop; not because the price will drop, but because the earnings are poised to rise.

Member Avatar DIVISION23 (< 20) Submitted: 8/7/2013 4:29:29 PM
Recs: 0

While Amgen has a very enviable ROE, over the past few years, revenue growth has been modest. Amgen is actually sharing many characteristic with Telecom companies, such AT&T : high barriers to entry once, that are fading slowly but surely. Don't get surprised if share buy backs and acquisitions are the mode of operations for Amgen.

Looking at the financials, Q2 and YTD revenues are declining Y/Y, and Free cash flow in Q2 was very week (down $800M Y/Y).

To conclude, the ride may not be over with the biotech group, but one day, investors will realize growth might not show up, and only multiple expansion is truly leading Amgen equity.

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