AMGN Stock analysis by StockPit(20201215)

Amgen was founded in California in 1980 and became a Delaware company in 1987. Amgen has grown into the world’s largest independent biotechnology company, has reached millions of patients worldwide, and is developing a series of drugs with breakthrough potential.
The company’s net profit margin has decreased slightly in recent years, but ROE has increased significantly year by year.
The company’s revenue continues to grow, but the increase in inventory requires attention.
EPS is increasing year by year, and its performance is outstanding.
The company earns cash and repays borrowings by operating activities and selling assets. Presumably this company is trying to improve its financial health

Market news: Amgen is the world’s largest biopharmaceutical company, focusing on cancer, migraine and coronavirus treatments.
The good news in the near future is AMGN announced that the FDA has granted a Breakthrough Therapy designation to its investigational KRAS inhibitor sotorasib for the treatment of locally advanced/metastatic non-small-cell lung cancer (“NSCLC”) in patients with KRAS G12C mutation.

Stock price trend: The stock price has bottomed out and will continue to fluctuate upward.
Estimation of the intrinsic value of Amgen’s DCF
The average growth rate of EPS in the past five years (2014-2019) is 11.35 percent.
The average growth rate of EPS in the past three years (2016-2019) is 5.86%.
The highest stock price in the past year is: 260.95 yuan, and the market expects an EPS growth rate of 15.33%.
The lowest stock price in the past year is 182.24 yuan, and the market expects an EPS growth rate of 9.84%.
The current stock price is 229.20 yuan, and the market expects an EPS growth rate of 13.36%.