AMGN
Amgen Inc.
Healthcare · Drug Manufacturers - General · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong growth and profitability scores reflect the near-doubling of net income and solid margins in FY2025, anchoring the composite score [growth.net_income.yoy, profitability.net_margin_pct].
- Consistent quarterly operating income and a multi-year dividend growth streak contributed positively to the momentum and dividend factors [momentum.operating_income_quarterly, dividend.dps_trend].
- The financial health factor weighed heavily against a higher score, as the 6.31 debt-to-equity ratio and 3.3x interest coverage represent meaningful balance-sheet risk [financial_health.debt_to_equity, financial_health.interest_coverage].
Why Not Higher
- The elevated leverage — a debt-to-equity ratio of 6.31 and interest coverage of only 3.3x — significantly penalized the financial health score, capping the overall composite [financial_health.debt_to_equity, financial_health.interest_coverage].
- The theme assignment to Biotech & Genomics and Diabetes / GLP-1 / Metabolic Health did not translate into a positive score under the model's current methodology, leaving additional potential points unrealized [theme.assigned].
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $33,424,000,000 to FY2025's $36,751,000,000, a gain of +10.0%. Net income surged from FY2024's $4,090,000,000 to FY2025's $7,711,000,000 (+88.5%), with diluted EPS rising from $7.56 in FY2024 to $14.23 in FY2025 (+88.2%).
The model rewarded the combination of solid top-line expansion and a near-doubling of bottom-line earnings in a single fiscal year, reflecting both revenue scale and meaningful margin improvement captured in the growth score.
In FY2025, Amgen posted a net margin of 21.0%, an operating margin of 24.7%, and a return on assets of 8.5%.
The model rewarded these above-average margin levels and asset productivity, reflecting a business that converts a meaningful share of revenue into both operating and net income while generating solid returns on its asset base.
In FY2025, Amgen carried a debt-to-equity ratio of 6.31 and an interest coverage ratio of 3.3, against a total asset base of $90,586,000,000.
The model penalized the elevated leverage reflected in the 6.31 debt-to-equity ratio and the relatively thin interest coverage of 3.3 in FY2025, both of which signal limited balance-sheet cushion despite the company's large asset base.
Quarterly revenue trended upward from $9,179,000,000 in 2025Q2 to $9,557,000,000 in 2025Q3 and $9,866,000,000 in 2025Q4 before pulling back to $8,618,000,000 in 2026Q1. Operating income remained relatively stable across the same four quarters at $2,656,000,000, $2,526,000,000, $2,720,000,000, and $2,666,000,000, while net income was more variable, ranging from $1,333,000,000 to $3,216,000,000.
The model rewarded the generally rising revenue trajectory through 2025Q4 and the consistency of operating income across all four quarters, even as the 2026Q1 revenue dip and net income variability tempered the score slightly below the maximum.
Amgen has grown its dividends per share each year from $7.95 in FY2022 to $8.64 in FY2023, $9.13 in FY2024, and $9.66 in FY2025. The dividend payout ratio in FY2025 stood at 66.5% of net income.
The model credited the consistent multi-year dividend growth streak, while the elevated 66.5% payout ratio in FY2025 likely constrained the score, as a high payout relative to earnings can signal limited room for further dividend increases or reduced financial flexibility.
Amgen is assigned to the macro themes of Biotech & Genomics and Diabetes / GLP-1 / Metabolic Health.
Although Amgen carries assignments to two actively tracked macro themes, this assignment did not translate into a positive score under the model's current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Amgen delivered strong FY2025 results, with revenue rising 10.0% to $36.75 billion and net income nearly doubling to $7.71 billion, driving diluted EPS from $7.56 to $14.23 [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy]. Profitability metrics were solid, with a 21.0% net margin, 24.7% operating margin, and 8.5% return on assets [profitability.net_margin_pct, profitability.operating_margin_pct, profitability.roa_pct]. However, the balance sheet carries meaningful risk, with a debt-to-equity ratio of 6.31 and interest coverage of only 3.3x, limiting financial flexibility [financial_health.debt_to_equity, financial_health.interest_coverage]. The overall picture is one of a profitable, growing business constrained by elevated leverage and a high dividend payout ratio of 66.5%, warranting further research before commitment [dividend.payout_ratio].
Plain English
Amgen is making good money and growing fast — profits nearly doubled in one year — but it also has a lot of debt relative to its equity and pays out a big chunk of earnings as dividends, which means there's less cushion if things go wrong [growth.net_income.yoy, financial_health.debt_to_equity, dividend.payout_ratio].
Bull Case vs. Bear Case
Bull Case
- Net income surged 88.5% year-over-year to $7.71 billion in FY2025, with diluted EPS rising from $7.56 to $14.23, demonstrating powerful bottom-line momentum [growth.net_income.yoy, growth.eps_diluted.yoy].
- Amgen's FY2025 operating margin of 24.7% and net margin of 21.0% reflect a business that efficiently converts revenue into earnings, supported by a return on assets of 8.5% [profitability.operating_margin_pct, profitability.net_margin_pct, profitability.roa_pct].
- Dividends per share have grown every year from $7.95 in FY2022 to $9.66 in FY2025, signaling a consistent commitment to returning capital to shareholders [dividend.dps_trend].
Bear Case
- Amgen's debt-to-equity ratio of 6.31 and interest coverage of just 3.3x in FY2025 indicate a heavily leveraged balance sheet with limited cushion against earnings pressure or rising interest costs [financial_health.debt_to_equity, financial_health.interest_coverage].
- The dividend payout ratio of 66.5% in FY2025 is elevated, leaving limited room for further dividend increases or reinvestment, and could become a strain if earnings soften [dividend.payout_ratio, dividend.dps_trend].
- Quarterly revenue pulled back from $9.87 billion in 2025Q4 to $8.62 billion in 2026Q1, and net income has been highly variable across recent quarters, ranging from $1.33 billion to $3.22 billion [momentum.revenue_quarterly, momentum.net_income_quarterly].
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly revenue above the 2025Q4 peak of $9.87 billion, combined with stabilization of net income variability, would signal that the 2026Q1 dip was temporary [momentum.revenue_quarterly, momentum.net_income_quarterly].
- Meaningful reduction in the debt-to-equity ratio or improvement in interest coverage beyond 3.3x would substantially reduce the primary financial risk overhang [financial_health.debt_to_equity, financial_health.interest_coverage].
Bearish Triggers
- If the 66.5% dividend payout ratio rises further or dividend growth stalls, it could signal deteriorating financial flexibility and pressure on future earnings reinvestment [dividend.payout_ratio, dividend.dps_trend].
- A continuation of the 2026Q1 revenue decline or further compression of operating income from its recent range of $2.53–$2.72 billion per quarter would undermine the growth and momentum thesis [momentum.revenue_quarterly, momentum.operating_income_quarterly].
Risk Profile
High RiskAmgen's primary financial risk stems from its heavily leveraged balance sheet, with a debt-to-equity ratio of 6.31 and interest coverage of just 3.3x in FY2025, leaving limited buffer against earnings deterioration [financial_health.debt_to_equity, financial_health.interest_coverage]. The 2026Q1 revenue pullback to $8.62 billion from a 2025Q4 peak of $9.87 billion, alongside variable net income across recent quarters, adds further uncertainty to the near-term outlook [momentum.revenue_quarterly, momentum.net_income_quarterly].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.