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AGING Analysis Report
Aug 6, 2026
17 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 6, 2026 · Filing on record since: Aug 19, 2026 · 13 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Amgen Inc. (AMGN) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Low · Gem Score -26 (−100…+100 Quality+Value blend) · Quality 21 · Value -64 · Sentiment 47 (timing only, not weighted) · Composite fair value $330.41 vs $407.83 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Amgen Inc.

AMGN NASDAQ
Healthcare · Drug Manufacturers - General
Thousand Oaks, CA 91320-1799, United States amgen.com Updated Aug 5, 2:07am
Price
$390.02
Market Cap
$210.5B
Employees
31,500
Beta
0.41
Avg Volume
2,427,468
Last Dividend
$9.80
CEO
Mr. Robert A. Bradway

Amgen Inc. is a biotechnology company that discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on innovative medicines addressing serious illnesses in areas such as oncology, inflammation, cardiovascular disease, bone health, nephrology, and neurology. Key products target conditions like cancer, rheumatoid arthritis, osteoporosis, anemia, and migraines, providing treatments that help manage chronic diseases and improve patient outcomes. Amgen Inc. serves healthcare providers including physicians, clinics, dialysis centers, hospitals, and pharmacies, distributing its portfolio through pharmaceutical wholesale distributors. The company also engages in collaborations, such as partnerships for development and commercialization of specific therapies. Founded in 1980 and headquartered in Thousand Oaks, California, Amgen Inc. plays a vital role in the biotechnology sector by advancing biologic medicines that address unmet medical needs and contribute to global healthcare advancements.

Runs with full report Generated: Aug 6, 2026 12:16am
Price Overview
Price at report time
$407.83
as of Aug 6, 12:21am (17d ago)
Change · Aug 6
+17.81 (+4.57%)
Day Range
$391.00 – $416.22
52-Week Range
$269.77 – $416.22
50-Day MA
$359.11
200-Day MA
$345.28
Volume
5,608,169.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 17d).
Share Structure
Outstanding 539,700,000.00
Float 538,224,076.00
Free Float 99.7%
High free float — 99.7% of shares trade freely, ~0.3% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 6, 2026 12:26am (17d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 6, 2026 12:26am (17d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 6, 2026 12:12am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
27.41
Stock Price: $390.02
EPS (Diluted): 14.23
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
24.42
Stock Price: $390.02
Total Equity: $8.66B
Shares: 542,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
17.92
Market Cap: $210.50B
Total Debt: $54.60B
Cash: $9.13B
EBITDA: $14.25B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$255.3B
Market Cap: $210.50B
Total Debt: $54.60B
Cash: $9.13B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
67.2%
Gross Profit: $24.71B
Revenue: $36.75B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
24.7%
Operating Income: $9.08B
Revenue: $36.75B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
21.0%
Net Income: $7.71B
Revenue: $36.75B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
89.1%
Net Income: $7.71B
Total Equity: $8.66B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
14.4%
Operating Income: $9.08B
Tax Rate: 14.1%
Equity: $8.66B
Total Debt: $54.60B
Cash: $9.13B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.14
Current Assets: $29.06B
Current Liabilities: $25.49B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
6.31
Short-Term Debt: $4.60B
Long-Term Debt: $50.01B
Total Debt: $54.60B
Total Equity: $8.66B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$67.81
Revenue: $36.75B
Shares: 542,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$15.97
Total Equity: $8.66B
Shares: 542,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$14.94
Operating CF: $9.96B
CapEx: -$1.86B
Shares: 542,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
2.5%
Last Dividend: $9.80
Stock Price: $390.02
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
66.5%
Dividends Paid: -$5.12B
Net Income: $7.71B
Industry Benchmarks
Last run: Aug 6, 2026 12:12am
Compares AMGN against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 6, 2026 12:26am (17d ago)
Metric 2021 2022 2023 2024 2025
Revenue $26.0B $26.3B $28.2B $33.4B $36.8B
Cost of Revenue $6.5B $6.4B $8.5B $12.9B $12.0B
Gross Profit $19.5B $19.9B $19.7B $20.6B $24.7B
Operating Expenses $11.9B $10.4B $11.8B $13.3B $15.6B
Operating Income $7.6B $9.6B $7.9B $7.3B $9.1B
Net Income $5.9B $6.6B $6.7B $4.1B $7.7B
EBITDA $11.0B $13.0B $12.0B $12.9B $14.2B
EPS $10.34 $12.18 $12.56 $7.62 $14.33
EPS (Diluted) $10.28 $12.11 $12.49 $7.56 $14.23
Balance Sheet (Annual)
Last updated: Jul 31, 2026 9:17am (23d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $8.0B $7.6B $10.9B $12.0B $9.1B
Total Current Assets $19.4B $22.2B $30.3B $29.0B $29.1B
Total Assets $61.2B $65.1B $97.2B $91.8B $90.6B
Current Liabilities $12.2B $15.7B $18.4B $23.1B $25.5B
Long-Term Debt $33.2B $37.4B $63.2B $56.5B $50.0B
Total Liabilities $54.5B $61.5B $90.9B $86.0B $81.9B
Total Equity $6.7B $3.7B $6.2B $5.9B $8.7B
Retained Earnings -$24.6B -$28.6B -$26.5B -$27.6B -$25.1B
Cash Flow (Annual)
Last updated: Aug 6, 2026 12:26am (17d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $9.3B $9.7B $8.5B $11.5B $10.0B
Capital Expenditure -$880.0M -$936.0M -$1.1B -$1.1B -$1.9B
Free Cash Flow $8.4B $8.8B $7.4B $10.4B $8.1B
Acquisitions (net) -$2.5B -$3.8B -$27.0B $0 -$53.0M
Net Debt Issued / (Repaid) $795.0M $6.9B $26.3B -$3.6B -$5.0B
Dividends Paid -$4.0B -$4.2B -$4.6B -$4.8B -$5.1B
Stock Buybacks -$5.0B -$6.4B $0 -$200.0M $0
Net Change in Cash $1.7B -$360.0M $3.3B $1.0B -$2.8B
Growth Trends (YoY %)
Last updated: Aug 6, 2026 12:26am (17d ago)
Metric 2022 2023 2024 2025
Revenue Growth +1.3% +7.1% +18.6% +10.0%
Gross Profit Growth +2.0% -0.9% +4.2% +20.2%
Operating Income Growth +25.2% -17.4% -8.1% +25.1%
Net Income Growth +11.2% +2.5% -39.1% +88.5%
EBITDA Growth +17.6% -7.8% +7.4% +10.9%
Dividend History (Last 20)
Last updated: Jul 31, 2026 9:17am (23d ago)
Date Dividend Declaration Record Payment
2026-05-15 $2.52
2026-02-13 $2.52
2025-11-21 $2.38
2025-08-22 $2.38
2025-05-16 $2.38
2025-02-14 $2.38
2024-11-18 $2.25
2024-08-16 $2.25
2024-05-16 $2.25
2024-02-15 $2.25
2023-11-16 $2.13
2023-08-17 $2.13
2023-05-17 $2.13
2023-02-14 $2.13
2022-11-16 $1.94
2022-08-17 $1.94
2022-05-16 $1.94
2022-02-14 $1.94
2021-11-15 $1.76
2021-08-16 $1.76
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-19 08:29
0.3 : 1 recovery upside vs repeat-quarter downside
Recovery pays +10%; another quarter like the worst recent one costs 37%. Ratio 0.3:1.
CaseGrowthMarginFair valuevs price ($407.83)
Bull — recovery +14% 34.5% $447.72 +10%
Base — stabilizes +9% 30.0% $338.69 -17%
Bear — keeps slipping +5% 25.5% $250.51 -39%
Stress — last quarter repeats +6% 25.3% $257.43 -37%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2026-03-31) — growth stays at 5.8% and margins bend by the same profit-vs-revenue ratio (×1.10). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Jun 2026, Mar 2026 against the same quarters one year earlier and found revenue +7.8% · operating income +61.2% · net income +32.6% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Mar 31, 2026 (revenue +5.8%, operating income +126.3% YoY) — not the average. Data measured through Jun 30, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for AMGN — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-06 00:25:30
Verdict Modestly overvalued — fair value $330-355, downside cushioned by FCF/dividend but no margin of safety at $390; wait for MariTide readout or a pullback to low-$340s before adding.

Starting from the raw numbers: TTM revenue is roughly $38.1B (summing the last four quarters), up from $33.4B in 2024 — call it ~14% growth, but a chunk of that is the Horizon Therapeutics deal annualizing, not organic. Q2 2026 at $10.05B with 23.6% net margin looks clean, but the quarterly margin sequence is wildly noisy (33.7% → 13.5% → 21.1% → 23.6%), which screams acquisition accounting, IPR&D charges, and tax true-ups rather than underlying operating leverage. Annual operating income of $9.08B in 2025 is actually below 2022's $9.57B on $10B more revenue — operating margin has compressed from 36% (2022) to 24.7%. That's the tell the bull narrative glosses over: Amgen bought revenue growth with balance sheet damage and margin dilution.

The balance sheet is genuinely ugly for a "fortress." $54.6B debt against $8.66B equity (D/E of 6.3x) and only $9.1B cash. The 89% ROE is a leverage artifact — ROA is 8.5% and ROIC 14.4%, respectable but not fortress. $8.1B FCF against $54B net debt is ~6.7x net-debt-to-FCF, and the dividend payout is 66% of earnings, leaving thin cushion for both deleveraging and the pipeline spend the bull case requires. At $390 and 27x earnings / 26x FCF, you're paying a full multiple for a company whose organic growth (ex-Horizon) is probably mid-single-digits and whose absolute operating profit hasn't grown in four years.

On the prior models: the synthesis verdict of $322-333 fair value (-18% downside from $407) is directionally right and I'd sharpen it. The narrative layer's framing that the 22% premium reflects "pipeline optionality" is charitable — I'd counter that it more likely reflects passive/dividend-fund bid and healthcare defensive rotation, not a rigorous pipeline SOTP. Tezepelumab is a partnered asset (AZN takes half), MariTide/MagicCD (GLP-1/CVD) faces a brutal Lilly/Novo duopoly, and biosimilar erosion on Enbrel, Prolia (2025 LOE), and Xgeva is a known headwind the sell-side habitually underestimates. The pre-flight "traditional pharma" tag is correct and undercuts the biotech-premium argument. The "decelerating quarterly trend" flag in revenue confidence matters — Q1 2026 at $8.62B was a sequential drop, and the Q2 pop needs to prove durable. The insider data is useless (only routine director awards of identical 665-share grants — no open-market buys, no conviction signal either way).

Contrarian steelman for the bulls: if MariTide reads out positively in obesity/cardiometabolic, Amgen has a credible third-place GLP-1 franchise with injectable-monthly differentiation, and the stock re-rates to $475+ on pipeline reval. Repatha is still growing, Tezspire is ramping, and rare disease (Horizon) has pricing power. Also — at 27x with a 2.5% yield growing 5-6%/year, this is a bond proxy in a rate-cut regime, and if 10-year yields grind to 3.5%, defensive healthcare gets a multiple tailwind independent of fundamentals. That's the honest bull case, and it's not crazy — but it requires either a rate tailwind or a MariTide win, both binary. I dissent mildly with the synthesis only on magnitude: fair value is probably $330-355 (I'd weight the DCF but add back some pipeline option value), not $322. Downside to fundamentals is ~10-15%, not 18%. The stock isn't a short — the FCF and dividend put a floor around $340 — but it's not a buy here either. Wait for either a MariTide de-risking event or a pullback to the low-$340s where you're paying 22x for a fortress-cash-flow story with real pipeline optionality thrown in free. At $390, you're paying for the optionality upfront.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-06 00:25:46
Verdict Overvalued at $390 — the revenue growth is real, but the market is paying too much for still-uneven earnings quality and a leveraged balance sheet; fair value is closer to $330-$350.

Amgen is being valued like a high-quality grower, but the actual financial profile still looks like a leveraged large-cap pharma trying to prove that its revenue step-up can translate into durable earnings power. The good news is obvious: revenue has inflected meaningfully, from $28.2B in 2023 to $33.4B in 2024 and $36.8B in 2025, with the last two quarters at $8.62B and $10.05B versus $8.15B and $9.18B a year earlier. That is not a stagnating top line. But the part the market is paying for is not just growth, it is quality of growth, and that is where I think the stock is ahead of itself. Net income was only $4.09B in 2024 before rebounding to $7.71B in 2025, and even within the quarterly run-rate, margins are lurching from 6.9% to 33.3% to 15.6% to 33.7% to 13.5% to 23.6%. A business earning a 27.4x trailing P/E should not have this much earnings noisiness unless investors expect a very strong multi-year pipeline payoff.

The balance sheet is the bigger reason I lean negative. Amgen has $54.6B of debt against just $9.1B of cash and only $8.7B of equity. That makes the 24.4x price-to-book and 6.3x debt-to-equity ratios less a sign of economic magic than of financial leverage and acquisition accounting. Return on equity near 89% looks impressive until you remember the equity base is thin. More importantly, free cash flow of $8.1B against a $210.5B market cap is only about a 3.8% FCF yield. For a company with 2025 operating margin of 24.7%, net margin of 21.0%, and a 2.5% dividend yield with a 66% payout ratio, that is not cheap. At nearly 5.8x sales and 17.9x EV/EBITDA, the stock is priced more like a clean compounder than a company still digesting debt and showing uneven conversion of revenue into profit.

What stands out to me is that the valuation models calling the stock fully priced are directionally right even if they may underappreciate the top-line momentum. The bullish temptation is to annualize the latest quarter: $10.05B of revenue and $2.38B of net income imply a much better earnings base than the trailing annual figures. But even if you do that, you are still paying roughly low-20s earnings for a company whose latest twelve-to-eighteen-month story is partly one of integration, margin dilution, and dependence on execution rather than effortless organic compounding. The market cap bakes in a lot of confidence that the recent 10% revenue growth and 88.5% earnings growth are the start of a sustained earnings reacceleration. I think that is too generous given the quarterly volatility and the relatively ordinary cash yield.

The best argument against my view is that the underlying trajectory may be cleaner than the GAAP numbers imply. Revenue growth has been real and consistent across the recent periods, gross profit rose from $19.7B in 2023 to $24.7B in 2025, operating income improved from $7.26B to $9.08B in 2025, and the latest two quarters show net margins back above 21% and 23%. If that is the new floor rather than a temporary recovery, then trailing P/E is overstating expensiveness because earnings power is resetting higher. A smart bull would also say that 14.4% ROIC for a large biopharma is respectable, current ratio at 1.14 is adequate, and the market is rationally assigning a premium to durability plus pipeline optionality. I weigh that less heavily because the stock is not at 15x earnings or 4x EBITDA where execution upside is free; it is already at a premium multiple with leverage that leaves less room for disappointment.

What would change my mind is simple: if Amgen can turn this revenue base into visibly steadier profitability and cash generation, the current price becomes easier to defend. I would want to see at least two to three more quarters with revenue holding around $9.5B-$10.0B, net margin consistently above 25%, and annualized free cash flow moving toward $10B-$12B rather than $8.1B. I would also want evidence that debt is coming down meaningfully from $54.6B rather than just being serviced. If those numbers show up, a $390 stock is more defensible and perhaps even cheap on forward earnings. If instead margins slip back into the mid-teens or revenue growth slows toward low single digits, the stock should trade closer to the low-$330s or below.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-06 00:26:30
Verdict Overvalued at $390; fair value nearer $320–340 on ~20x normalized earnings and 18–20x FCF once leverage and decelerating growth are properly discounted

The raw numbers tell a story of acquisition-fueled expansion colliding with a stretched balance sheet and a valuation that still prices in durability the cash flows have not yet earned. Amgen grew revenue from $28.2B in 2023 to $33.4B in 2024 and $36.8B in 2025, a roughly 14% CAGR that looks impressive until you notice the gross-margin compression from the mid-70s historically to 67.3% and the collapse in equity to just $8.66B against $54.6B of total debt. That leverage is the Horizon hangover; net debt sits near $45B while free cash flow printed only $8.1B in 2025. Recent quarters show the growth engine already decelerating—$10.05B in the June 2026 quarter is up ~9.5% year-over-year versus the prior-year period, and the March quarter managed only ~5.8%. Net income has rebounded to $7.71B for full-year 2025 after the $4.09B trough in 2024, but quarterly margins still whip from 6.9% to 33.7%, underscoring how much noise and one-time items still sit inside the P&L. At $390 the stock trades at 27.4x earnings, 5.75x sales and roughly 26x trailing FCF (EV/FCF closer to 32x once the debt load is acknowledged). Those multiples are rich for a business whose organic runway is now mid-single to low-double-digit and whose ROIC of 14.4% is respectable but not exceptional.

The prior valuation work that lands near $333 fair value is directionally correct; the market is paying a 15–20% premium for pipeline optionality that has not yet shown up in the run-rate numbers. The narrative layer’s claim of “$15B+ free cash flow” is simply wrong—actual FCF is $8.1B—and the 2.5% dividend yield on a 66% payout is ordinary, not fortress-like. Insider activity is pure award noise, offering no signal. What stands out most is the mismatch between a still-elevated multiple and a capital structure that leaves little room for error if biosimilar erosion or pipeline slippage appears.

The strongest counter-argument is that Amgen is executing the post-Horizon integration better than the worst fears: revenue is still compounding above 9% on a trailing basis, operating cash flow remains nearly $10B, and the absolute earnings recovery to $7.7B demonstrates operating leverage once deal costs fade. A bull can also point to the cardiovascular and respiratory assets (Tezepelumab franchise, MariTide/obesity-adjacent programs) as real call options that could re-accelerate growth into the teens and justify a mid-20s earnings multiple in a sector that routinely awards scarcity premiums. ROE above 80% is optically absurd because equity is tiny, yet it does reflect a company that has historically returned capital aggressively. If those pipeline assets convert and debt is paid down at the current FCF clip, today’s price could prove merely full rather than expensive.

I would reverse to a neutral or constructive stance only if two things arrive together: organic revenue growth re-accelerating and holding above 12% for dual consecutive quarters, and clear evidence of net-debt/EBITDA compression below 3x while operating margin expands back through 28%. A single transformative Phase 3 win in the metabolic/CVD franchise that consensus currently under-models would also flip the skew. Until then the risk-reward at $390 is skewed the wrong way.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.3; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ +0.7 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Grok grok-4.5 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-06 01:01:16
Delvantic - Cairn AI
Quality - wait for a dip to low-$330s 7/10
Great franchise, wrong price - AMGN at $407.83 is 20%+ above fair despite the tailwind, so I wait rather than chase the guide-raise pop.
The cruxWhether price mean-reverts toward the low-$330s composite FV before the pipeline/deleveraging story gives the bulls a second wind - entry price, not business quality, decides this trade.
Forensic checks Derived mechanically from AMGN's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionShare Count Shrinking
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+21
Strong
edge √Σ 107 · risk √Σ 86 · conf 7/10

Amgen is a mature, high-margin drug manufacturer producing consistent free cash flow ($8.10B in 2025, $10.39B in 2024, averaging roughly $8-9B annually across the five-year window). Revenue has compounded from $25.98B (2021) to $36.75B (2025), a ~9% CAGR accelerated by the Horizon acquisition, while diluted share count has actually shrunk (573M to 542M, -1.4% CAGR) with buybacks running ~5.25x SBC — per-share value is being concentrated, not eroded. Earnings quality is clean: OCF/NI of 1.68x, accruals at -4.5% of assets, Beneish M at -2.26. No mechanical red flags. The blemish is the balance sheet. Net debt of roughly $45.5B against only $9.1B liquid cash reflects the Horizon financing, and the Altman Z of 1.94 sits in the grey zone. Gross margin also compressed sharply in 2024 (61.5% vs 75%+ historically) before partially recovering to 67.2%, and net income swung from $6.72B (2023) to $4.09B (2024) to $7.71B (2025) — the volatility is real even if FCF held up. Insider tape is neutral: only routine awards and tax-withholding, no directional open-market activity. This is a durable earner with an unmistakable leverage overhang, not a pristine fortress.

Strengths 3
m70
Consistent FCF generation
FCF has ranged $7.36B-$10.39B across five years on rising revenue; 2025 FCF of $8.10B on $36.75B revenue reflects a self-funding mature franchise.
m60
Per-share value concentration
Diluted shares fell from 573M (2021) to 542M (2025), a -1.4% CAGR, with buyback/SBC at 525% and SBC only 1.3% of revenue — capital return is real, not cosmetic.
m55
Clean earnings quality signals
OCF/NI of 1.68x, accruals -4.5% of assets, Beneish M of -2.26 — cash conversion exceeds accounting earnings and no manipulation flags in the mechanical checks.
Concerns 3
m65
Heavy net debt load
Net cash position of -$45.48B against only $9.13B liquid cash; Altman Z of 1.94 sits in the grey zone. Balance sheet is a constraint, not a cushion — deleveraging is now a multi-year obligation.
m45
Margin volatility
Gross margin dropped from 75.7% (2022) to 61.5% (2024) before recovering to 67.2% (2025); operating margin swung from 36.3% to 21.7% to 24.7%. Mix shift from the Horizon integration is visibly diluting historical franchise economics.
m35
Net income choppiness
Net income moved $6.72B -> $4.09B -> $7.71B across 2023-2025, a wider swing than typical for a mature pharma and worth understanding at the filing level.
This is a genuinely strong business - mature, cash-rich in operations, disciplined on share count, and clean on the forensic diagnostics. What keeps me from calling it fortress is the leverage: -$45B net cash is a real constraint, and the Altman grey zone plus the 2024 margin dip tell me the Horizon deal is still being digested. The insider tape offers nothing informative either way. If deleveraging proceeds and margins stabilize back toward historical norms, this rerates upward on quality; if the pipeline underdelivers with debt still on, the concerns compound. Solid, not pristine.
Verify before trusting this (5)
  • Debt maturity schedule and pace of deleveraging post-Horizon
  • Whether 2024 GM compression to 61.5% reflects one-time acquisition accounting or a durable mix shift
  • Patent-cliff exposure on top franchises (Enbrel, Prolia, Otezla) and pipeline replacement (MariTide, etc.)
  • Segment-level contribution and concentration risk among top drugs
  • Reconciliation of 2024 net income drop to $4.09B despite FCF of $10.39B
Valuation / Mispricing
-64
Rich
edge √Σ 25 · risk √Σ 101 · conf 7/10
Price $407.83 vs deserved ~$333 signal-adjusted (~$322 composite) - roughly 18-22% overvalued, no margin of safety. attractive below $330.00

The e2e synthesis lands at a composite FV of $322.24 and a signal-adjusted FV of $333.15 against a $407.83 print - implying -18% downside, not upside. The DCF ($386.68) is the most generous method and still sits below the current price; the anchored P/E ($344.41) is below price; and the EPV floor at $171.19 shows how much of today's quote depends on continued pipeline execution rather than steady-state earnings. Earnings quality is high, so I am not haircutting deserved value further - but I am also not stretching it. A strong-quality business justifies paying up to fair, not paying 20% through it.

Cheap signals 1
m25
Quality and earnings integrity support paying near fair
Strong quality grade and clean earnings quality mean I use the higher end of the FV range ($333 vs $322) - but that still leaves price 18% too high.
Rich / priced-in 3
m72
Price 22% above signal-adjusted FV
$407.83 vs $333.15 signal-adjusted composite implies -18% return to fair; every method in the stack (DCF $386.68, anchored P/E $344.41, EPV $171.19) sits below spot.
m55
EPV floor at $171 flags optionality-heavy price
More than half of today's $407.83 quote is pipeline and growth optionality, not steady-state earnings power - a real risk if MariTide or the oncology pipeline disappoints.
m45
Bull case is the base case
At 18x FCF and 3% yield, the price already assumes Horizon deleveraging goes smoothly and pipeline hits land - little room for the bear's patent-cliff scenario.
I like the business but not the price. Composite fair value is in the low $330s and spot is $407.83 - that is roughly 20% of air I would need to see removed before this is interesting. High quality earns a full multiple, not a premium multiple, and Amgen is trading at the premium. I would want it in the low $330s or below to feel I am being paid for the patent-cliff and leverage risks.
Verify before trusting this (4)
  • MariTide Phase 2 obesity readouts and any Phase 3 design/enrollment updates
  • Horizon-related net debt paydown pace and interest expense trajectory
  • 2025 guidance for Repatha, Prolia biosimilar erosion, and Tezepelumab uptake
  • Any goodwill or intangible impairment tied to Horizon in upcoming filings
General Sentiment
+47
Tailwind
tail √Σ 90 · head √Σ 39 · conf 7/10

The news flow is unambiguously positive for AMGN in the last 72 hours: a Q2 earnings smash, a $1B sales outlook hike, and a 4% pop with the stock topping a buy zone. The narrative pressure has swung from 'patent-cliff legacy pharma' toward 'fortress biotech with pipeline optionality delivering', and the market is rewarding it in real time - even as the obesity candidate was abandoned, the story held because growth is showing up in cardio, bone, and rare disease. That is the definition of a strengthening narrative overtaking the bear story. On the tape, the regime is mildly risk-on with the Dow at new highs, which is neutral-to-positive for a low-beta (0.41) defensive pharma - it will not levitate on animal spirits, but it also is not being sold to fund risk assets, and healthcare is quietly getting bid as an earnings-quality trade. Macro headwinds (10y at 4.63%, mkt PE 27.7) are a background drag on all equities but land softly on a 3-4% yielder with low beta and a fortress balance sheet (D/E improving 10.4 to 6.3). Net: the sentiment force pressing on AMGN right now is a moderate tailwind - a fresh, credible earnings-driven narrative refresh in a supportive tape, without the euphoric cult energy that would make it fragile.

Tailwinds 3
m70
Earnings beat + guide raise refreshes narrative
Q2 smash and $1B outlook hike is the exact catalyst that flips the bear 'patent cliff, priced-in peak' story into 'pipeline is delivering'. Fresh, dated, and already moving the stock.
m45
Obesity setback shrugged off
Abandoning the obesity candidate would normally be a narrative crack, but the tape absorbed it because non-obesity growth carried the quarter - signals the story is more durable than the bear case implied.
m35
Risk-on tape with Dow at records
Mildly supportive backdrop, but low beta 0.41 means AMGN captures only a fraction of the animal spirits; it benefits more from the earnings-quality rotation than from risk-on per se.
Headwinds 2
m30
Macro rate drag on yield proxies
10y at 4.63% and market PE 27.7 keep a lid on defensive dividend names like AMGN; a 3-4% yield competes with cash and short T-bills, capping multiple expansion.
m25
Narrative is moderate, not cult
Intensity moderate, cult low - no fanatical bid to squeeze the stock higher. Sentiment tailwind is real but bounded; this name will not run 30% on a story alone.
Net moderate tailwind. The narrative just got a credible refresh from an actual earnings beat and guide raise, the obesity miss was absorbed rather than punished, and the tape is friendly enough (Dow record, risk-on) without being so euphoric that it starves defensives. Low beta means macro rate pressure is a real but manageable drag rather than a whip. This is not a cult stock and will not moonshot on sentiment, but the direction of pressure right now is clearly up - a good moment to be long the story, not the moment to fade it.
Verify before trusting this (4)
  • Analyst target revisions in the week after the print - are sell-siders raising numbers or fading the guide?
  • Whether the post-earnings buy zone breakout holds or fades within 5-10 sessions
  • Any biosimilar or Part D pricing headline that could re-open the legacy-drug bear narrative
  • Sector rotation signals - if defensives get sold to chase AI/cyclicals, AMGN loses its bid
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -5.6% v0.6.0 View full prediction →

When we made this prediction on Aug 6, 2026, AMGN was $407.83. We expect it to be $385.00 by Feb 2027, and we consider it great value under $330.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 6, 2026.

Price when predicted$407.83
Our estimate for Feb 2027$385.00-5.6%
Great value below$330.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06