What’s Happening With Amgen Stock?

Amgen stock (NASDAQ:AMGN) fell 6% on Monday, June 23, 2025, after mid-stage clinical trial results for its long-acting experimental obesity drug, MariTide, revealed a need for a low starting dose to mitigate side effects like vomiting. Amgen plans to proceed with Phase 3 trials, initiating patients on a lower dosage that will gradually increase with an eight-week dose escalation period.

MariTide is a crucial drug for Amgen, with projected annual peak sales exceeding $5 billion. While the market reacted negatively to the reported side effects, we believe Amgen remains a strong pick at its current price of around $270 per share. We acknowledge some minor concerns regarding the stock, but its current moderate valuation makes it an attractive investment.

Our conclusion is based on a comprehensive analysis of Amgen’s current valuation, its operating performance in recent years, and its historical and current financial condition. Our assessment across key parameters—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that Amgen possesses a robust operating performance and sound financial health. However, for investors who seek lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see – Is Iran Bluffing While Readying An Attack?

How Does Amgen’s Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, AMGN stock is currently valued in line with the broader market.

• Amgen has a price-to-sales (P/S) ratio of 4.6 vs. a figure of 3.1 for the S&P 500
• Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 14.4 compared to 20.9 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 26.4 vs. the benchmark’s 26.9

How Have Amgen’s Revenues Grown Over Recent Years?

Amgen’s Revenues have seen notable growth over recent years.

• Amgen has seen its top line grow at an average rate of 9.3% over the last 3 years (vs. increase of 5.5% for S&P 500)
• Its revenues have grown 15.6% from $30 Bil to $34 Bil in the last 12 months (vs. growth of 5.5% for S&P 500)
• Also, its quarterly revenues grew 9.4% to $8.1 Bil in the most recent quarter from $7.4 Bil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is Amgen?

Amgen’s profit margins are around the median level for companies in the Trefis coverage universe.

Does Amgen Look Financially Stable?

Amgen’s balance sheet looks weak.

• Amgen’s Debt figure was $57 Bil at the end of the most recent quarter, while its market capitalization is $147 Bil (as of 6/23/2025). This implies a poor Debt-to-Equity Ratio of 36.6% (vs. 19.4% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $8.8 Bil of the $89 Bil in Total Assets for Amgen. This yields a moderate Cash-to-Assets Ratio of 9.9%

How Resilient Is AMGN Stock During A Downturn?

AMGN stock has been more resilient than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on AMGN stock? Our dashboard How Low Can Amgen Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes.

Inflation Shock (2022)

• AMGN stock fell 26.7% from a high of $292.39 on 8 November 2022 to $214.27 on 1 June 2023, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 2 January 2024
• Since then, the stock has increased to a high of $337.38 on 22 September 2024 and currently trades at around $270

Covid Pandemic (2020)

• AMGN stock fell 24.6% from a high of $241.70 on 15 January 2020 to $182.24 on 12 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 27 April 2020

Global Financial Crisis (2008)

• AMGN stock fell 47.3% from a high of $75.85 on 22 January 2007 to $39.97 on 19 March 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 11 July 2012

Putting All The Pieces Together: What It Means For AMGN Stock

In summary, Amgen’s performance across the parameters detailed above are as follows:

• Growth: Very Strong
• Profitability: Neutral
• Financial Stability: Weak
• Downturn Resilience: Very Strong
• Overall: Strong

Overall, Amgen demonstrates strong performance across these key parameters. Given its moderate valuation, we believe it’s a good pick at around $270 per share. While AMGN stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.