Amgen Inc. (AMGN) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Amgen Inc.

Updated on October 24, 2026 · accounts published on August 4, 2026

Reading of October 23, 2026: A highly profitable drug maker that turns earnings into cash, carrying heavy debt

Amgen trades at a P/E of 27.3 over the last 12 months, 37 % above its ten-year median of 20.0 but 10 % below its sector median of 30.5.

• Is Amgen expensive or cheap? Its P/E of 27.3 is 37 % above its ten-year median and higher than in 88 % of the past decade, yet 10 % below its sector.
• How is the business doing? Revenue grew 10 % over the last 12 months, and the 33 % operating margin is back above fiscal 2025 but below its 35 % decade average.
• How strong is the balance sheet? Net debt was $89.65 per share in fiscal 2025, about 20 % of the price, while the dividend has risen for 11 straight years.
• What to expect from the next earnings? Analysts expect EPS of $5.79 on November 3, 2026, and Amgen has beaten EPS estimates in each of the last 8 quarters.
• Does Amgen invest enough in R&D and turn profit into cash? R&D took 19 % of fiscal 2025 revenue, above the 15 % healthy mark, and free cash flow reached 105 % of net income.

Is Amgen expensive or cheap?

Over the last 12 months Amgen trades at a P/E of 27.3, 37 % above its ten-year median of 20.0. Over the past decade the weekly P/E ranged from 13.1 to 51.3, and the stock has traded at a lower multiple 88 % of the time. Against its sector the picture softens: the healthcare median P/E is 30.5, so Amgen sits 10 % below it. Much of the re-rating comes from the share price, up 53 % in 12 months and 2 % below its 52-week high of $447.28. A free cash flow yield of 3.8 % shows how much of the past year's strength is already in the price.

How is the business doing?

Revenue rose 10 % over the last 12 months and EPS jumped 88 %, a sharp rebound when set against EPS growth of only 2.9 % a year over fiscal 2020-2025. The operating margin of 33 % over the last 12 months recovered from 29 % in fiscal 2025, though it still trails the 35 % average of fiscal 2014-2025. Returns on capital stand out: ROIC of 14.2 % is 8.1 points above the sector median of 6.1 %, and it topped 10 % in 7 of the last 10 fiscal years. The 89 % ROE reflects a thin equity base more than exceptional profitability.

How strong is the balance sheet?

Debt is the weak spot. Net debt equalled 2.7× EBITDA in fiscal 2025, just above the 2.5× level considered healthy in healthcare, and debt stands at 4.9 times equity over the last 12 months. The Altman Z of 1.7 falls in the danger zone, a reading driven by leverage, since the Piotroski score of 8 out of 9 and a current ratio of 1.4 point to sound operations. Shareholders are still rewarded: the dividend yields 2.2 % over the last 12 months and has grown for 11 consecutive fiscal years, with a payout of 66 % of fiscal 2025 earnings that leaves limited room if profits stall.

What to expect from the next earnings?

Amgen reports on November 3, 2026, with analysts expecting EPS of $5.79 for the quarter. The track record sets a high bar: it has beaten EPS estimates in 8 of the last 8 quarters, most recently on August 4, 2026, with $6.29 against $5.62 expected, a 12 % beat. Expectations for the full year are steady, with the 2026 EPS consensus barely moving in the last 30 days, from $23.08 to $23.04 across 20 analysts. Of the 41 analysts covering the company, 22 recommend buying, 16 holding and 3 selling.

Does Amgen invest enough in R&D and turn profit into cash?

In healthcare the research pipeline is the hidden asset: patents expire and the revenue tied to them fades, so spending on innovation and converting profit into cash say more than a single year's earnings. Amgen spent 19 % of revenue on R&D in fiscal 2025, above the 15 % considered healthy for the sector. Free cash flow equalled 105 % of net income in fiscal 2025, against a healthy mark of 90 %. The gross margin of 70.8 % clears the 70 % branded-pharma threshold by a thin margin. The miss is growth: EPS rose 2.9 % a year over fiscal 2020-2025, well short of the healthy 8 % pace.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.