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AMNEAL PHARMACEUTICALS INC (AMRX) Stock Fundamental Analysis

NASDAQ:AMRX - Nasdaq - US03168L1052 - Common Stock - Currency: USD

8.9  +0.14 (+1.6%)

After market: 8.9 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to AMRX. AMRX was compared to 192 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of AMRX while its profitability can be described as average. AMRX is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year AMRX was profitable.
AMRX had a positive operating cash flow in the past year.
In multiple years AMRX reported negative net income over the last 5 years.
AMRX had a positive operating cash flow in 4 of the past 5 years.
AMRX Yearly Net Income VS EBIT VS OCF VS FCFAMRX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

1.2 Ratios

Looking at the Return On Assets, with a value of -2.42%, AMRX is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
AMRX has a worse Return On Equity (-424.61%) than 79.17% of its industry peers.
AMRX has a better Return On Invested Capital (6.72%) than 84.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMRX is significantly below the industry average of 43.55%.
The last Return On Invested Capital (6.72%) for AMRX is above the 3 year average (6.02%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -2.42%
ROE -424.61%
ROIC 6.72%
ROA(3y)-1.86%
ROA(5y)-2.63%
ROE(3y)-155.07%
ROE(5y)-118.24%
ROIC(3y)6.02%
ROIC(5y)N/A
AMRX Yearly ROA, ROE, ROICAMRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

1.3 Margins

AMRX has a better Operating Margin (9.97%) than 81.77% of its industry peers.
AMRX's Operating Margin has declined in the last couple of years.
AMRX has a Gross Margin of 34.28%. This is comparable to the rest of the industry: AMRX outperforms 57.29% of its industry peers.
In the last couple of years the Gross Margin of AMRX has declined.
Industry RankSector Rank
OM 9.97%
PM (TTM) N/A
GM 34.28%
OM growth 3Y16.23%
OM growth 5Y-7.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-3.88%
AMRX Yearly Profit, Operating, Gross MarginsAMRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMRX is destroying value.
There is no outstanding debt for AMRX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
AMRX Yearly Shares OutstandingAMRX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
AMRX Yearly Total Debt VS Total AssetsAMRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 1.38, we must say that AMRX is in the distress zone and has some risk of bankruptcy.
AMRX's Altman-Z score of 1.38 is fine compared to the rest of the industry. AMRX outperforms 63.02% of its industry peers.
The Debt to FCF ratio of AMRX is 9.77, which is on the high side as it means it would take AMRX, 9.77 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.77, AMRX belongs to the best of the industry, outperforming 82.29% of the companies in the same industry.
A Debt/Equity ratio of 134.73 is on the high side and indicates that AMRX has dependencies on debt financing.
AMRX has a Debt to Equity ratio of 134.73. This is amonst the worse of the industry: AMRX underperforms 85.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 134.73
Debt/FCF 9.77
Altman-Z 1.38
ROIC/WACC0.69
WACC9.74%
AMRX Yearly LT Debt VS Equity VS FCFAMRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

AMRX has a Current Ratio of 1.63. This is a normal value and indicates that AMRX is financially healthy and should not expect problems in meeting its short term obligations.
AMRX has a worse Current ratio (1.63) than 65.63% of its industry peers.
AMRX has a Quick Ratio of 1.63. This is a bad value and indicates that AMRX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, AMRX is not doing good in the industry: 78.65% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 0.94
AMRX Yearly Current Assets VS Current LiabilitesAMRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

The earnings per share for AMRX have decreased by -9.37% in the last year.
AMRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.63% yearly.
EPS 1Y (TTM)-9.37%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.4%

3.2 Future

AMRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.95% yearly.
Based on estimates for the next years, AMRX will show a small growth in Revenue. The Revenue will grow by 0.60% on average per year.
EPS Next Y23.85%
EPS Next 2Y17.87%
EPS Next 3Y13.44%
EPS Next 5Y11.95%
Revenue Next Year8.53%
Revenue Next 2Y6.74%
Revenue Next 3Y6.09%
Revenue Next 5Y0.6%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AMRX Yearly Revenue VS EstimatesAMRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
AMRX Yearly EPS VS EstimatesAMRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1

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7

4. Valuation

4.1 Price/Earnings Ratio

AMRX is valuated correctly with a Price/Earnings ratio of 15.34.
86.98% of the companies in the same industry are more expensive than AMRX, based on the Price/Earnings ratio.
AMRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 12.39, which indicates a correct valuation of AMRX.
AMRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMRX is cheaper than 85.94% of the companies in the same industry.
AMRX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.34
Fwd PE 12.39
AMRX Price Earnings VS Forward Price EarningsAMRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

84.38% of the companies in the same industry are more expensive than AMRX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMRX indicates a rather cheap valuation: AMRX is cheaper than 91.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.98
EV/EBITDA 11.08
AMRX Per share dataAMRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AMRX's earnings are expected to grow with 13.44% in the coming years.
PEG (NY)0.64
PEG (5Y)1.44
EPS Next 2Y17.87%
EPS Next 3Y13.44%

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0

5. Dividend

5.1 Amount

AMRX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AMNEAL PHARMACEUTICALS INC

NASDAQ:AMRX (3/7/2025, 8:04:52 PM)

After market: 8.9 0 (0%)

8.9

+0.14 (+1.6%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-28 2025-02-28/bmo
Earnings (Next)N/A N/A
Inst Owners37.23%
Inst Owner Change-11.45%
Ins Owners50.46%
Ins Owner Change2.51%
Market Cap2.76B
Analysts82
Price Target11.22 (26.07%)
Short Float %1.88%
Short Ratio2.03
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.54%
Min EPS beat(2)46.9%
Max EPS beat(2)52.17%
EPS beat(4)4
Avg EPS beat(4)49.34%
Min EPS beat(4)22.55%
Max EPS beat(4)75.73%
EPS beat(8)5
Avg EPS beat(8)21.2%
EPS beat(12)8
Avg EPS beat(12)16.97%
EPS beat(16)12
Avg EPS beat(16)24.15%
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-4.63%
Max Revenue beat(2)2.12%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)3.87%
Revenue beat(8)5
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)-1.01%
Revenue beat(16)8
Avg Revenue beat(16)0.08%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
Industry RankSector Rank
PE 15.34
Fwd PE 12.39
P/S 1.15
P/FCF 9.98
P/OCF 7.98
P/B 139.41
P/tB N/A
EV/EBITDA 11.08
EPS(TTM)0.58
EY6.52%
EPS(NY)0.72
Fwd EY8.07%
FCF(TTM)0.89
FCFY10.02%
OCF(TTM)1.12
OCFY12.53%
SpS7.73
BVpS0.06
TBVpS-4.74
PEG (NY)0.64
PEG (5Y)1.44
Profitability
Industry RankSector Rank
ROA -2.42%
ROE -424.61%
ROCE 9.09%
ROIC 6.72%
ROICexc 6.95%
ROICexgc 15.4%
OM 9.97%
PM (TTM) N/A
GM 34.28%
FCFM 11.55%
ROA(3y)-1.86%
ROA(5y)-2.63%
ROE(3y)-155.07%
ROE(5y)-118.24%
ROIC(3y)6.02%
ROIC(5y)N/A
ROICexc(3y)6.26%
ROICexc(5y)N/A
ROICexgc(3y)14.24%
ROICexgc(5y)N/A
ROCE(3y)7.88%
ROCE(5y)N/A
ROICexcg growth 3Y21.37%
ROICexcg growth 5Y3.49%
ROICexc growth 3Y27.59%
ROICexc growth 5Y5%
OM growth 3Y16.23%
OM growth 5Y-7.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-3.88%
F-Score4
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 134.73
Debt/FCF 9.77
Debt/EBITDA 5.69
Cap/Depr 30.16%
Cap/Sales 2.89%
Interest Coverage 1.24
Cash Conversion 73.82%
Profit Quality N/A
Current Ratio 1.63
Quick Ratio 0.94
Altman-Z 1.38
F-Score4
WACC9.74%
ROIC/WACC0.69
Cap/Depr(3y)30.14%
Cap/Depr(5y)33.11%
Cap/Sales(3y)3.17%
Cap/Sales(5y)3.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.37%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%-14.29%
EPS Next Y23.85%
EPS Next 2Y17.87%
EPS Next 3Y13.44%
EPS Next 5Y11.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.4%
Revenue Next Year8.53%
Revenue Next 2Y6.74%
Revenue Next 3Y6.09%
Revenue Next 5Y0.6%
EBIT growth 1Y19.79%
EBIT growth 3Y23.56%
EBIT growth 5Y-0.69%
EBIT Next Year23.3%
EBIT Next 3Y10.28%
EBIT Next 5Y6.36%
FCF growth 1Y1184.09%
FCF growth 3Y-4.04%
FCF growth 5Y12.54%
OCF growth 1Y430.84%
OCF growth 3Y-3.03%
OCF growth 5Y6.67%