Amgen: Improving Balance Sheet Is Bringing The Stock Close To Being A "Buy"

Daniel Schönberger13.44K FollowersFollow5ShareSavePlay(18min)CommentsSummaryAmgen Inc. is at least fairly valued, with improving balance sheet metrics and a robust growth pipeline offsetting looming patent expirations. Amgen's Q3/25 results showed 12.4% revenue growth, 13.6% EPS growth, and a raised FY25 revenue and EPS guidance, supporting a slightly optimistic outlook. Patent expirations for Prolia and Enbrel threaten 24% of revenue, but pipeline assets like MariTide and Olpasiran offer potential blockbuster offsets. With a P/FCF of 15.1 and expected 3–4% FCF growth, Amgen appears reasonably valued, though not a bargain; a moderate pullback could offer a better entry. vzphotos/iStock Editorial via Getty Images More than five months ago, in early August 2025, I published my last article about Amgen Inc. (AMGN) and I was cautious about the stock as an investment. In my conclusion I wrote: InThis article was written byDaniel Schönberger13.44K FollowersFollowMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow does Amgen's improving balance sheet affect its investment case?AMGN reduced total debt by 9.6% year-over-year and returned to its pre-Horizon capital structure, enhancing financial flexibility and reducing risk, though leverage remains elevated.What are the key growth drivers and risks in AMGN's outlook?MariTide and Olpasiran represent major growth opportunities, but patent expirations for Prolia and Enbrel put $8 billion in annual revenue at risk, necessitating new blockbusters.Is AMGN attractively valued based on current multiples and growth assumptions?At a P/FCF of 15.1 and with 3–4% FCF growth required for fair value, AMGN is reasonably valued; further upside may depend on pipeline execution and managing patent cliffs.Recommended For You