Buy, Sell, Or Hold Amgen Stock At $270?

June 24th, 2025 by Trefis Team
AMGN: Amgen logo
AMGN
Amgen

Amgen stock (NASDAQ:AMGN) declined 6% on Monday, June 23, 2025, following the release of mid-stage clinical trial results for its long-acting obesity drug candidate, MariTide. The data indicated the need for a low initial dosage to reduce side effects like vomiting. Amgen intends to move forward with Phase 3 trials, starting patients on a reduced dose and gradually increasing it over an eight-week titration period.

MariTide is a pivotal asset for Amgen, with peak annual sales expected to exceed $5 billion. Despite the market’s negative response to the side effects, we consider Amgen an appealing investment at its current price of approximately $270 per share. While we acknowledge some minor risks, the stock’s moderate valuation adds to its attractiveness.

This view is based on a detailed assessment of Amgen’s current valuation, operational performance over the past few years, and overall financial standing. Across critical metrics such as Growth, Profitability, Financial Stability, and Resilience During Downturns, Amgen demonstrates solid performance and a strong financial base. However, for investors seeking lower volatility, the Trefis High Quality portfolio offers an alternative, having outpaced the S&P 500 with returns above 91% since its inception. Also, see – Is Iran Bluffing While Readying An Attack?

How Does Amgen’s Valuation Compare to the S&P 500?

On a per-dollar-of-sales or profit basis, AMGN stock trades roughly in line with the broader market.

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

How Have Amgen’s Revenues Trended Recently?

Amgen’s revenues have seen healthy growth over recent years.

  • Amgen’s top line has grown at an average annual rate of 9.3% over the last 3 years (vs. 5.5% for the S&P 500)
  • Its revenue increased 15.6% from $30 billion to $34 billion over the past 12 months (vs. 5.5% growth for the S&P 500)
  • Quarterly revenue rose 9.4% to $8.1 billion from $7.4 billion a year ago (vs. a 4.8% gain for the S&P 500)

How Profitable Is Amgen?

Amgen’s profitability is about average relative to peers in the Trefis coverage.

  • Amgen’s Operating Income over the last four quarters was $7.4 billion, resulting in a moderate Operating Margin of 21.8%
  • Amgen’s Operating Cash Flow was $12 billion during the same period, reflecting a high OCF Margin of 35.7% (vs. 14.9% for the S&P 500)
  • Over the last four quarters, Amgen’s Net Income totaled $5.9 billion, yielding a moderate Net Income Margin of 17.4% (vs. 11.6% for the S&P 500)

How Financially Stable Is Amgen?

Amgen’s balance sheet appears somewhat weak.

  • Its debt stood at $57 billion in the latest quarter, against a market cap of $147 billion (as of 6/23/2025), implying a high Debt-to-Equity Ratio of 36.6% (vs. 19.4% for the S&P 500)
  • Cash and equivalents amounted to $8.8 billion out of $89 billion in total assets, equating to a moderate Cash-to-Assets Ratio of 9.9%

How Resilient Is AMGN Stock in Market Downturns?

AMGN stock has shown greater resilience than the S&P 500 in certain recent downturns. Concerned about a market crash’s effect on AMGN? Our dashboard How Low Can Amgen Stock Go In A Market Crash? dives into historical performance across market crashes.

Inflation Shock (2022)

  • AMGN dropped 26.7% from $292.39 (8 Nov 2022) to $214.27 (1 Jun 2023), vs. 25.4% decline for the S&P 500
  • It fully rebounded by 2 Jan 2024
  • The stock peaked at $337.38 (22 Sep 2024) and now trades near $270

COVID-19 Pandemic (2020)

  • AMGN dropped 24.6% from $241.70 (15 Jan 2020) to $182.24 (12 Mar 2020), vs. a 33.9% drop for the S&P 500
  • It fully recovered by 27 Apr 2020

Global Financial Crisis (2008)

  • AMGN dropped 47.3% from $75.85 (22 Jan 2007) to $39.97 (19 Mar 2008), vs. 56.8% decline for the S&P 500
  • It fully recovered by 11 Jul 2012

Bottom Line: What This Means for AMGN Stock

In conclusion, Amgen’s performance by parameter:

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

Considering this, Amgen remains a compelling buy at around $270 per share. While single-stock investing carries inherent risks, the Trefis High Quality (HQ) Portfolio, which includes 30 well-performing stocks, has consistently outperformed the S&P 500 over the past four years. Why? Because HQ

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