Amgen Inc Rated Highly By Growth Model Amid Mixed Results

Amgen Inc receives strong ratings from a renowned growth model. The firm shows promising fundamentals, though it faces challenges in capital expenditures and R&D, indicating potential risks ahead.

Date: 02-03-2025

AI Rating: 6

Amgen Inc Analysis

Amgen Inc (AMGN) is assessed through a growth model that has rated it highly at 77%. This indicates that the stock exhibits underlying fundamentals and valuation characteristics favorable for sustained growth. A score of this magnitude suggests that investors might be interested in the stock with strong growth potential.

The report shows that AMGN meets several key criteria, which include:

BOOK/MARKET RATIO: Pass
RETURN ON ASSETS: Pass
CASH FLOW FROM OPERATIONS TO ASSETS: Pass
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: Pass
RETURN ON ASSETS VARIANCE: Pass
SALES VARIANCE: Pass
ADVERTISING TO ASSETS: Pass

However, there are two areas where the company has failed to meet expectations:

CAPITAL EXPENDITURES TO ASSETS: Fail
RESEARCH AND DEVELOPMENT TO ASSETS: Fail

This indicates that while Amgen has strong operational metrics, it may be underinvesting in capital and R&D that are critical for long-term growth and competitiveness in the biotechnology and drugs industry.

Despite these failures, the overall rating reflects positively on Amgen’s potential for future growth given its strong performance in other areas. Investors should consider the mixed results in their evaluation of the company’s stock.

Stocks: AMGN