Is the business good?
How good a business is AMGN?
Amgen earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.4 points above what the capital costs: growth creates value
- Operating margin
- 30%
Operating margin · Drug Manufacturers - General median 24% · 12 months to Q2 2026
- Cash conversion
- 1.16×
Cash conversion · 1.60× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.55%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 36% |
| FY2021 | 29% |
| FY2022 | 36% |
| FY2023 | 28% |
| FY2024 | 22% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q2 2026
- 70%
- Operating margin12 months to Q2 2026
- 30%
- Net margin12 months to Q2 2026
- 23%
- Free cash flow margin
- 27%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $38.1B
- Free cash flow, trailing twelve months
- $10.2B
- Net income, trailing twelve months
- $8.74B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Drug Manufacturers - General
Ranks #5 of 16 by Smart Score