AMRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. AMRX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on AMRX.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AMRX had positive earnings in the past year.
AMRX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AMRX reported negative net income in multiple years.
Each year in the past 5 years AMRX had a positive operating cash flow.

1.2 Ratios

The Return On Assets of AMRX (0.16%) is better than 77.49% of its industry peers.
With an excellent Return On Invested Capital value of 10.43%, AMRX belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AMRX is below the industry average of 12.83%.
The last Return On Invested Capital (10.43%) for AMRX is above the 3 year average (7.98%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	0.16%
ROE	N/A
ROIC	10.43%

ROA(3y)-3.06%

ROA(5y)-1.33%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)7.98%

ROIC(5y)6.53%

1.3 Margins

With a decent Profit Margin value of 0.20%, AMRX is doing good in the industry, outperforming 77.49% of the companies in the same industry.
Looking at the Operating Margin, with a value of 12.32%, AMRX belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
AMRX's Operating Margin has improved in the last couple of years.
The Gross Margin of AMRX (36.76%) is better than 60.21% of its industry peers.
In the last couple of years the Gross Margin of AMRX has grown nicely.

		Industry Rank	Sector Rank
OM	12.32%
PM (TTM)	0.2%
GM	36.76%

OM growth 3Y6.45%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.15%

GM growth 5Y4.39%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMRX is still creating some value.
Compared to 1 year ago, AMRX has less shares outstanding
The number of shares outstanding for AMRX has been increased compared to 5 years ago.
The debt/assets ratio for AMRX has been reduced compared to a year ago.

2.2 Solvency

AMRX has an Altman-Z score of 1.94. This is not the best score and indicates that AMRX is in the grey zone with still only limited risk for bankruptcy at the moment.
AMRX has a Altman-Z score (1.94) which is comparable to the rest of the industry.
The Debt to FCF ratio of AMRX is 11.13, which is on the high side as it means it would take AMRX, 11.13 years of fcf income to pay off all of its debts.
AMRX has a better Debt to FCF ratio (11.13) than 78.53% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	11.13
Altman-Z	1.94

ROIC/WACC1

WACC10.38%

2.3 Liquidity

AMRX has a Current Ratio of 2.13. This indicates that AMRX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.13, AMRX is not doing good in the industry: 60.21% of the companies in the same industry are doing better.
A Quick Ratio of 1.42 indicates that AMRX should not have too much problems paying its short term obligations.
AMRX has a Quick ratio of 1.42. This is in the lower half of the industry: AMRX underperforms 65.44% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.13
Quick Ratio	1.42

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AMRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
Looking at the last year, AMRX shows a quite strong growth in Revenue. The Revenue has grown by 16.73% in the last year.
The Revenue has been growing by 11.43% on average over the past years. This is quite good.

EPS 1Y (TTM)25%

EPS 3Y-11.61%

EPS 5Y10.63%

EPS Q2Q%6.25%

Revenue 1Y (TTM)16.73%

Revenue growth 3Y10.1%

Revenue growth 5Y11.43%

Sales Q2Q%11.68%

3.2 Future

Based on estimates for the next years, AMRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.95% on average per year.
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 Y40.43%

EPS Next 2Y27.65%

EPS Next 3Y26.98%

EPS Next 5Y11.95%

Revenue Next Year8.74%

Revenue Next 2Y7.7%

Revenue Next 3Y7.95%

Revenue Next 5Y0.6%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

AMRX is valuated rather expensively with a Price/Earnings ratio of 17.85.
Based on the Price/Earnings ratio, AMRX is valued cheaply inside the industry as 83.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. AMRX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.17, AMRX is valued correctly.
Based on the Price/Forward Earnings ratio, AMRX is valued cheaply inside the industry as 83.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.26. AMRX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.85
Fwd PE	14.17

4.2 Price Multiples

86.39% of the companies in the same industry are more expensive than AMRX, based on the Enterprise Value to EBITDA ratio.
AMRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AMRX is cheaper than 85.34% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.8
EV/EBITDA	11.13

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.
The decent profitability rating of AMRX may justify a higher PE ratio.
A more expensive valuation may be justified as AMRX's earnings are expected to grow with 26.98% in the coming years.