Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Amgen (NASDAQ:AMGN) against its key competitors in the Biotechnology industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within 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.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Amgen Inc | 18.78 | 18.46 | 5.29 | 23.97% | $3.6 | $5.1 | 3.77% |
| AbbVie Inc | 37.82 | 20.15 | 4.44 | 14.25% | $4.74 | $7.44 | -5.97% |
| Vertex Pharmaceuticals Inc | 27.67 | 5.75 | 9.94 | 6.47% | $1.23 | $2.16 | 6.39% |
| Gilead Sciences Inc | 16.06 | 4.19 | 3.45 | 10.03% | $3.23 | $5.49 | 0.11% |
| Regeneron Pharmaceuticals Inc | 22.83 | 3.50 | 6.95 | 4.12% | $1.23 | $2.93 | 14.53% |
| Biogen Inc | 22.33 | 2.25 | 3.27 | -0.47% | $0.05 | $1.87 | 0.87% |
| BioNTech SE | 8.23 | 1.11 | 3.39 | 0.81% | $0.27 | $0.24 | -74.13% |
| Genmab A/S | 33.34 | 4.56 | 8.42 | 7.11% | $2.71 | $4.64 | 16.08% |
| Biomarin Pharmaceutical Inc | 108.66 | 3.22 | 6.92 | 0.83% | $0.07 | $0.46 | 15.04% |
| Incyte Corp | 27.95 | 2.39 | 3.28 | 3.54% | $0.23 | $0.86 | -3.73% |
| Neurocrine Biosciences Inc | 59.07 | 5.51 | 6.33 | 4.31% | $0.12 | $0.49 | 28.59% |
| United Therapeutics Corp | 12.23 | 1.82 | 4.98 | 4.92% | $0.36 | $0.53 | 27.76% |
| Exelixis Inc | 72.55 | 2.79 | 3.85 | 0.04% | $-0.01 | $0.45 | 14.62% |
| Grifols SA | 223.60 | 0.93 | 0.87 | 0.99% | $0.25 | $0.63 | 3.66% |
| Average | 51.72 | 4.47 | 5.08 | 4.38% | $1.11 | $2.17 | 3.37% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After thoroughly examining Amgen, the following trends can be inferred:
- A Price to Earnings ratio of 18.78 significantly below the industry average by 0.36x suggests undervaluation. This can make the stock appealing for those seeking growth.
- It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 18.46 which exceeds the industry average by 4.13x.
- With a relatively high Price to Sales ratio of 5.29, which is 1.04x the industry average, the stock might be considered overvalued based on sales performance.
- The Return on Equity (ROE) of 23.97% is 19.59% above the industry average, highlighting efficient use of equity to generate profits.
- Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.6 Billion, which is 3.24x above the industry average, indicating stronger profitability and robust cash flow generation.
- The gross profit of $5.1 Billion is 2.35x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- The company is experiencing remarkable revenue growth, with a rate of 3.77%, outperforming the industry average of 3.37%.
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 can be assessed by comparing it to its top 4 peers, resulting in the following observations:
- Amgen has a higher debt-to-equity ratio of 7.9 compared to its top 4 peers.
- This indicates a higher level of financial risk as the company relies more heavily on borrowed funds. Investors may perceive this as a potential concern.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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