Amgen Inc. (NASDAQ:AMGN)

The analysis of the quarterly financial ratios over the observed periods reveals several notable trends and changes across valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates relatively stable values from March 2020 through early 2023, fluctuating generally between approximately 16 and 23. Beginning in the first quarter of 2024, there is a marked and substantial increase, peaking at over 53 in the third quarter of 2024. This spike is followed by a decline back toward the mid-20s range by the end of the period. The sharp rise and subsequent fall suggest increased market expectations or volatility in earnings during 2024.

Price to Operating Profit (P/OP) Ratio

This ratio trends somewhat similarly to the P/E ratio but with less pronounced swings. From early 2020 to 2023, the P/OP ratio generally remains within a range of about 14 to 17. Entering 2024, it increases significantly, reaching a high near 28 in late 2024, before moderating back to around 20 by the first quarter of 2025. This pattern indicates fluctuations in the market valuation relative to operating profit, reflecting changing profitability or market sentiment.

Price to Sales (P/S) Ratio

The P/S ratio remains fairly stable throughout the entire period, fluctuating modestly between roughly 4.6 and 5.9. There is a slight dip toward the end of the period, moving from approximately 5.7 down to about 4.6. The relative stability of this metric suggests that market valuation relative to sales has not undergone significant shifts, implying consistent revenue expectations or pricing.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibits significant volatility across the observed timeframe. Early in the series, the ratio varies between about 11.5 and 18.5, then suddenly spikes dramatically to extremely high values around 138.87 in March 2022. Following this peak, the ratio declines rapidly but remains elevated compared to prior levels, fluctuating between approximately 17.9 and 33.3 through 2024. This considerable fluctuation could suggest irregularities or extraordinary events impacting the book value, such as asset revaluations, impairments, or changes in equity accounting.

Overall, the data indicates that market valuations relative to earnings and operating profit experienced significant volatility during 2024, possibly driven by earnings fluctuations or altered market expectations. Meanwhile, valuation relative to sales remained comparatively steady, reflecting stable revenue trends. The extreme variability in the P/BV ratio points to underlying changes in asset or equity valuations that warrant further examination for a comprehensive understanding.

Share Price Trends

The share price exhibited moderate fluctuations over the observed period. Beginning at $230.98 in March 2020, it experienced an increase reaching $248.85 in June 2020, followed by a decline to $217.82 in September 2020. Subsequently, the price generally trended upward, peaking at $320.16 in December 2024. However, a notable pullback occurred thereafter, with the price descending to $281.22 by March 2025. Overall, the share price demonstrated a strong recovery and growth trajectory after the initial volatility in 2020.

Earnings Per Share (EPS) Patterns

Earnings per share data are reported starting from March 2021. EPS showed a slight downward trend in the first two quarters of 2021, moving from $12.58 to $10.12 by September 2021. It then stabilized and improved modestly through early 2023, peaking at approximately $14.92 in June 2023. After this peak, EPS declined steadily, reaching a low of $5.83 by September 2024, before recovering somewhat to $11.03 by March 2025. This pattern indicates episodic fluctuations in profitability, with a significant dip in late 2023 and early 2024 followed by partial recovery.

Price to Earnings Ratio (P/E) Analysis

The P/E ratio, available from March 2021, initially hovered around the high teens to low twenties, indicating relatively stable valuation against earnings. It decreased from 22.56 in September 2021 to 16.18 in March 2023, reflecting a lower market price relative to earnings or improved earnings performance. Subsequently, the P/E ratio rose sharply, reaching a peak of 53.65 in June 2024 amid falling EPS, suggesting market valuation remained high despite shrinking earnings. After mid-2024, the P/E ratio declined again to 25.49 by March 2025, indicative of market valuation adjusting closer to improved earnings levels.

Overall Insights

The data indicate that the company experienced volatility in share price and profitability over the period analyzed. Initial recovery in share price following 2020 volatility was robust, while EPS displayed more variability, including a sharp decline and rebound in the 2023-2025 timeframe. The P/E ratio movements highlight periods of market optimism not fully supported by earnings, especially mid-2024. The partial normalization of the P/E ratio toward early 2025 reflects a market response to improved earnings conditions.

Share Price Trend

The share price exhibited fluctuations over the analyzed periods with an overall upward movement until the end of 2023, peaking notably at $320.16 in December 2024. Initially, prices varied between approximately $217 and $249 in 2020, followed by a recovery and steady increase through 2022 and 2023. In 2024, despite some volatility, the share price reached its highest levels before a slight decline towards the first quarter of 2025.

Operating Profit Per Share (OPPS) Trend

Operating profit per share data became available starting in the first quarter of 2021. The OPPS showed a general increasing trend from $13.04 to $18.07 between late 2020 and late 2022, indicating improving profitability on a per-share basis during this period. However, from late 2022 onwards, OPPS gradually declined, reaching approximately $11.52 to $13.85 quarters in 2024 and early 2025, suggesting a weakening in operating profitability despite fluctuations.

Price-to-Operating-Profit (P/OP) Ratio Analysis

The P/OP ratio initially ranged between roughly 13.4 and 17.48 from early 2021 to late 2022, reflecting moderate market valuation relative to operating profit. Starting from early 2023, the ratio increased significantly, peaking near 27.68 in late 2024, which indicates the market valuation grew disproportionately compared to the operating profit per share. A decline followed by the first quarter of 2025, lowering the ratio to about 20.31, but it remained elevated relative to earlier years. This pattern suggests the market may have become more optimistic or assigned a premium valuation despite declining operating profits per share.

Overall Insights

The data delineates a period of recovery and growth in share price and operating profit per share through 2022, followed by a divergence in 2023 and 2024 where share prices continued to rise or remained high while operating profit per share declined. The rising P/OP ratio in this later period implies increasing investor expectations or other factors influencing valuation beyond operating profit performance. This divergence may warrant further investigation into underlying drivers such as changes in market conditions, strategic developments, or external factors impacting investor sentiment.

The analysis of the quarterly financial data reveals various trends in share price, sales per share, and the price-to-sales (P/S) ratio over the reviewed periods.

Share Price

The share price shows notable fluctuations throughout the quarters analyzed. From March 2020 to December 2020, the share price initially increased, peaking at 248.85 US$ in June 2020, followed by a decline to 217.82 US$ in September 2020, then a recovery to 236.65 US$ by December 2020. Throughout 2021, the share price remained relatively stable with minor volatility, moving between 218.13 US$ and 236.71 US$. Thereafter, the share price saw an upward trend through 2022 and 2023, reaching a peak of 320.16 US$ in December 2024. However, towards the end of the period, specifically by March 2025, the price declined to 281.22 US$, indicating some recent downward pressure after earlier gains.

Sales per Share

Sales per share data begins from March 2021 and displays a consistent upward trajectory throughout the quarters. Starting at 41.97 US$ in March 2021, this figure steadily increased quarter over quarter, reaching 60.96 US$ by March 2025. The consistent growth suggests ongoing improvement in revenue generation on a per-share basis, which may indicate strengthening operational performance or increasing sales volumes.

Price-to-Sales (P/S) Ratio

The P/S ratio, starting from March 2021, exhibited some variation but generally trended downward after initial stability. It began at 5.64, maintaining levels above 5 through early 2022 and mid-2023, with occasional peaks such as 5.85 in December 2022 and 5.93 in June 2024. Despite these peaks, the ratio declined towards the latter quarters, falling to 4.61 by March 2025. This decline in P/S ratio alongside increasing sales per share and declining share price indicates a revaluation of the stock, possibly reflecting market adjustments or changing investor sentiment regarding future growth prospects.

In summary, the data indicate improving sales performance per share with consistent growth, while the stock price shows volatility with overall appreciation followed by a recent decrease. The declining P/S ratio in the face of rising sales suggests a normalization or correction in valuation metrics after earlier higher multiples. These trends collectively provide insight into the company's market perception and operational progress during the period analyzed.

The analysis of the quarterly financial data reveals several notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price exhibits fluctuations throughout the timeline, starting at $230.98 and experiencing both rises and declines. Initially, there is a gradual increase reaching $248.85, followed by a dip in late 2020 to approximately $217.82. The share price recovers moderately in early 2021, hovering around the mid-$200s. A marked increase is observed beginning in early 2023, peaking at $320.16 by the end of 2024, before showing a decline to $281.22 in the first quarter of 2025. Overall, the share price demonstrates volatility but with an upward trajectory towards the latter part of the data.

Book Value Per Share (BVPS)

The BVPS shows inconsistent trends, starting at a relatively stable high around $16.12 in early 2020 and maintaining values close to this through 2021. However, a significant decrease is noted in early 2022 where BVPS falls sharply to a low of $1.71, remaining depressed through most of 2022. From 2023 onwards, BVPS recovers gradually, reaching values over $14 by late 2023, then fluctuating between approximately $9.36 and $14 during 2024 and early 2025. This pattern suggests some extraordinary events or adjustments affecting equity book value predominantly in 2022, with a recovery over subsequent periods.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio starts around 14.33, remaining within a range of roughly 11.57 to 18.51 throughout 2020 and 2021. In early 2022, there is an extreme spike in this ratio, reaching as high as 138.87, corresponding to the sharp decline in BVPS observed previously, and then declining gradually to values around 35 by the end of 2022. The ratio continues to diminish through 2023 and 2024, settling between 17.87 and 33.25 before decreasing further to 24.36 in early 2025. This volatility in P/BV largely reflects the fluctuations in book value rather than share price, indicating market valuation discrepancies relative to accounting equity during the early 2020s.

In summary, the share price shows overall resilience with long-term growth despite short-term volatility. The book value per share underwent a significant contraction and partial recovery, which heavily impacted the P/BV ratio, resulting in notable valuation variability. These observations suggest periods of intense financial adjustment or market reinterpretation of the company's equity base, emphasizing the importance of considering both market and book metrics in performance assessment.