Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Amgen (NASDAQ:AMGN) in comparison to its major competitors within the Biotechnology industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Amgen Background Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brings several rare disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
| Amgen Inc | 19.87 | 19.53 | 5.60 | 23.97% | $3.6 | $5.1 | 3.77% |
| AbbVie Inc | 41.81 | 22.28 | 4.91 | 14.25% | $4.74 | $7.44 | -5.97% |
| Vertex Pharmaceuticals Inc | 30.08 | 6.25 | 10.81 | 6.47% | $1.23 | $2.16 | 6.39% |
| Gilead Sciences Inc | 16.90 | 4.41 | 3.63 | 10.03% | $3.23 | $5.49 | 0.11% |
| Regeneron Pharmaceuticals Inc | 24.01 | 3.68 | 7.31 | 4.12% | $1.23 | $2.93 | 14.53% |
| Biogen Inc | 25.23 | 2.54 | 3.70 | -0.47% | $0.05 | $1.87 | 0.87% |
| BioNTech SE | 8.40 | 1.13 | 3.46 | 0.81% | $0.27 | $0.24 | -74.13% |
| Genmab A/S | 32.49 | 4.45 | 8.20 | 7.11% | $2.71 | $4.64 | 16.08% |
| Biomarin Pharmaceutical Inc | 123.58 | 3.66 | 7.87 | 0.83% | $0.07 | $0.46 | 15.04% |
| Incyte Corp | 32.81 | 2.80 | 3.86 | 3.54% | $0.26 | $0.86 | 11.63% |
| Neurocrine Biosciences Inc | 63.77 | 5.95 | 6.83 | 4.31% | $0.12 | $0.49 | 28.59% |
| United Therapeutics Corp | 12.04 | 1.80 | 4.91 | 4.81% | $0.38 | $0.54 | 18.1% |
| Exelixis Inc | 80.97 | 3.11 | 4.29 | 0.04% | $-0.01 | $0.45 | 14.62% |
| Grifols SA | 254.20 | 1.06 | 0.99 | 0.99% | $0.25 | $0.63 | 3.66% |
| Average | 57.41 | 4.86 | 5.44 | 4.37% | $1.12 | $2.17 | 3.81% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Upon analyzing Amgen, the following trends can be observed:
- The Price to Earnings ratio of 19.87 is 0.35x lower than the industry average, indicating potential undervaluation for the stock.
- The elevated Price to Book ratio of 19.53 relative to the industry average by 4.02x suggests company might be overvalued based on its book value.
- The Price to Sales ratio of 5.6, which is 1.03x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- With a Return on Equity (ROE) of 23.97% that is 19.6% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.6 Billion, which is 3.21x above the industry average, indicating stronger profitability and robust cash flow generation.
- With higher gross profit of $5.1 Billion, which indicates 2.35x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
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The company is witnessing a substantial decline in revenue growth, with a rate of 3.77% compared to the industry average of 3.81%, which indicates a challenging sales environment.
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Amgen stands in comparison with its top 4 peers, leading to the following comparisons:
- Among its top 4 peers, Amgen has a higher debt-to-equity ratio of 7.9.
- This implies a greater reliance on debt financing, which can expose the company to higher financial risk and potential challenges.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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