Amgen trades at a trailing P/E of 24.94 with a $193.4B market cap, supported by $14.37 TTM EPS and 5.8% quarterly revenue growth to $37.22B, presenting a balanced thesis amid biotech sector volatility. The valuation reflects stable cash flows from established therapies while forward P/E of 16.1 signals potential re-rating on earnings expansion.
Key catalysts include upcoming product launches in oncology and inflammation, continued international market expansion, and strong earnings momentum with 4.4% quarterly EPS growth; analyst consensus targets $352.77, implying upside from current levels near the 50-day moving average of $340.23.
Risks encompass regulatory scrutiny on drug pricing, intense competition from biosimilars, and macro headwinds from interest rates affecting R&D funding; these are mitigated by Amgen's robust pipeline, 85% institutional ownership, and diversified revenue base with a 2.74% dividend yield providing downside support.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.
Fundamental Snapshot
Revenue
37.22B
EBITDA
16.918B
Gross Profit
26.591B
Operating Margin
33.8%
Profit Margin
21.0%
ROE
101.3%
Book Value
$17.03
Beta
0.416
52-Wk High
$388.36
52-Wk Low
$264.02
Avg Volume
3.353M
PEG Ratio
1.934
Trading Data
Open
$354.82
Previous Close
$352.82
Day Range
$354.16 – $362.27
Volume
3.5687M
Shares Outstanding
539.708M
Analyst Target
$352.77
Frequently Asked Questions
What is Amgen's business model?
Amgen operates as a biopharmaceutical company focused on discovering, developing, and commercializing innovative therapies using recombinant DNA technology. It generates revenue primarily through sales of patented drugs in oncology, nephrology, and inflammation, with TTM revenue of $37.22B and a 21% profit margin.
What are Amgen's main revenue sources?
Revenue comes mainly from blockbuster products like Enbrel, Prolia, and Otezla, plus newer oncology assets. TTM revenue reached $37.22B with 5.8% YoY quarterly growth, supported by international expansion and a 0.21 profit margin on $69.12 revenue per share.
What competitive advantages does Amgen have?
Amgen benefits from a deep pipeline, strong R&D capabilities, and high barriers in biologics manufacturing. Its 24.94 trailing P/E and $193.4B market cap reflect durable moats, backed by 85% institutional ownership and consistent 1.01 return on equity.
What are the key risks for AMGN investors?
Primary risks include biosimilar competition, drug pricing regulations, and patent expirations. The stock's 0.416 beta and 52-week range of $264-$388 highlight volatility, though mitigated by a 2.74% dividend yield and upcoming June 5, 2026 dividend payment.
What is Amgen's growth outlook?
Analysts project continued growth with a $352.77 target price and forward P/E of 16.1. Momentum from new launches and 4.4% EPS growth supports expansion, with the next earnings likely following the March 31, 2026 quarter amid 5.8% revenue increases.
