Taking everything into account, AMRX scores 5 out of 10 in our fundamental rating. AMRX was compared to 190 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AMRX had positive earnings in the past year.
In the past year AMRX had a positive cash flow from operations.
In multiple years AMRX reported negative net income over the last 5 years.
In the past 5 years AMRX always reported a positive cash flow from operatings.

1.2 Ratios

AMRX has a Return On Assets of 0.16%. This is in the better half of the industry: AMRX outperforms 77.37% of its industry peers.
With an excellent Return On Invested Capital value of 10.43%, AMRX belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
AMRX had an Average Return On Invested Capital over the past 3 years of 7.98%. This 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

AMRX has a better Profit Margin (0.20%) than 77.37% of its industry peers.
AMRX's Operating Margin of 12.32% is amongst the best of the industry. AMRX outperforms 85.26% of its industry peers.
AMRX's Operating Margin has improved in the last couple of years.
The Gross Margin of AMRX (36.76%) is comparable to the rest of the industry.
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

AMRX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AMRX has been reduced compared to 1 year ago.
Compared to 5 years ago, AMRX has more shares outstanding
Compared to 1 year ago, AMRX has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.97 indicates that AMRX is not a great score, but indicates only limited risk for bankruptcy at the moment.
AMRX has a Altman-Z score (1.97) 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's Debt to FCF ratio of 11.13 is fine compared to the rest of the industry. AMRX outperforms 78.42% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	11.13
Altman-Z	1.97

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.
AMRX has a worse Current ratio (2.13) than 60.00% of its industry peers.
AMRX has a Quick Ratio of 1.42. This is a normal value and indicates that AMRX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.42, AMRX is not doing good in the industry: 65.26% of the companies in the same industry are doing better.

		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

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

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

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 Y40.2%

EPS Next 2Y28.34%

EPS Next 3Y26.83%

EPS Next 5Y11.95%

Revenue Next Year8.74%

Revenue Next 2Y7.6%

Revenue Next 3Y7.79%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.24, which indicates a rather expensive current valuation of AMRX.
Compared to the rest of the industry, the Price/Earnings ratio of AMRX indicates a rather cheap valuation: AMRX is cheaper than 82.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, AMRX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.32, the valuation of AMRX can be described as correct.
Based on the Price/Forward Earnings ratio, AMRX is valued cheaply inside the industry as 83.16% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMRX to the average of the S&P500 Index (25.57), we can say AMRX is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.24
Fwd PE	14.32

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMRX indicates a rather cheap valuation: AMRX is cheaper than 84.74% of the companies listed in the same industry.
85.26% of the companies in the same industry are more expensive than AMRX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	18.18
EV/EBITDA	11.41

4.3 Compensation for Growth

AMRX's 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 26.83% in the coming years.