Amgen Inc. AMGN
Verdict: Sell. Fair value $265 against a price of $324 on 5 Jan 2026, 18% below the price.
In plain words
The case for: Wide competitive moat provides durability. Market leadership enables pricing power. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. Revenue increased 18.5% (from $28.19B to $33.42B) while Net Income collapsed 39.1% (from $6.72B to.... Net Income margin compressed significantly to ~12.2% in 2024 vs ~23.8% in 2023, indicating heavy....
Main risks
- Severe margin deterioration (Net Margin fell from ~24% to 12.2% in 2024)
- Extreme leverage indicated by low Equity ($5.88B) relative to Assets ($91.8B)
- Negative incremental returns on capital (ROIIC -11.7%) following recent asset expansion
- Near-term debt maturity concerns
- Revenue increased 18.5% (from $28.19B to $33.42B) while Net Income collapsed 39.1% (from $6.72B to...
- Intense competitive environment