Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Amgen (NASDAQ:AMGN) in relation to its major competitors in the Biotechnology industry. By closely examining key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and highlight company's performance in the industry.
Amgen Background Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive-care products. 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). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amjevita (biosimilar Humira).
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Amgen Inc | 18.17 | 21.26 | 5.45 | 22.74% | $3.26 | $5.17 | 5.94% |
| AbbVie Inc | 29.88 | 19.92 | 4.60 | 15.4% | $5.42 | $9.62 | -4.92% |
| Gilead Sciences Inc | 18.05 | 4.62 | 3.62 | 4.96% | $2.5 | $5.16 | 5.42% |
| Vertex Pharmaceuticals Inc | 27.92 | 6.03 | 9.89 | 6.12% | $1.21 | $2.18 | 13.52% |
| Regeneron Pharmaceuticals Inc | 20.93 | 3.58 | 7.10 | 4.08% | $1.2 | $2.75 | 10.53% |
| Biogen Inc | 13.15 | 2.41 | 3.51 | 4.19% | $0.87 | $1.86 | -5.14% |
| Moderna Inc | 26.38 | 1.71 | 2.86 | -7.71% | $-1.64 | $-0.41 | -93.08% |
| BioNTech SE | 5.05 | 1.10 | 2.40 | -0.95% | $-0.38 | $-0.37 | -94.75% |
| Biomarin Pharmaceutical Inc | 157.75 | 3.23 | 7 | 1.19% | $0.1 | $0.47 | 11.52% |
| Incyte Corp | 33.31 | 2.57 | 3.48 | 4.42% | $0.3 | $0.89 | 4.74% |
| Neurocrine Biosciences Inc | 60.62 | 5.69 | 6.54 | 5.4% | $0.13 | $0.44 | 19.7% |
| United Therapeutics Corp | 12.72 | 1.95 | 5.25 | 4.92% | $0.36 | $0.53 | 27.76% |
| Exelixis Inc | 41.98 | 2.64 | 3.99 | 3.19% | $0.08 | $0.45 | 12.02% |
| Average | 37.31 | 4.62 | 5.02 | 3.77% | $0.85 | $1.96 | -7.72% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By carefully studying Amgen, we can deduce the following trends:
- At 18.17, the stock's Price to Earnings ratio is 0.49x less than the industry average, suggesting favorable growth potential.
- The elevated Price to Book ratio of 21.26 relative to the industry average by 4.6x suggests company might be overvalued based on its book value.
- The Price to Sales ratio of 5.45, which is 1.09x 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 22.74% that is 18.97% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.26 Billion is 3.84x above the industry average, highlighting stronger profitability and robust cash flow generation.
- Compared to its industry, the company has higher gross profit of $5.17 Billion, which indicates 2.64x above the industry average, indicating stronger profitability and higher earnings from its core operations.
- The company's revenue growth of 5.94% exceeds the industry average of -7.72%, indicating strong sales performance and market outperformance.
The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
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 light of the Debt-to-Equity ratio, a comparison between Amgen and its top 4 peers reveals the following information:
- Among its top 4 peers, Amgen has a higher debt-to-equity ratio of 9.08.
- This suggests a greater reliance on debt financing, which can expose the company to increased financial risk and potential volatility.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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