Amneal Pharmaceuticals, Inc.
Amneal Pharmaceuticals, Inc. Fundamental Analysis
Amneal Pharmaceuticals, Inc. (AMRX) shows weak financial fundamentals with a PE ratio of 772.49, profit margin of 0.20%, and ROE of -5.10%. The company generates $2.9B in annual revenue with strong year-over-year growth of 16.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 288.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze AMRX's fundamental strength across five key dimensions:
Efficiency Score
WeakAMRX struggles to generate sufficient returns from assets.
Valuation Score
WeakAMRX trades at a premium to fair value.
Growth Score
ExcellentAMRX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAMRX maintains a strong and stable balance sheet.
Profitability Score
WeakAMRX struggles to sustain strong margins.
Key Financial Metrics
Is AMRX Expensive or Cheap?
P/E Ratio
AMRX trades at 772.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AMRX's PEG of 9.75 indicates potential overvaluation.
Price to Book
The market values Amneal Pharmaceuticals, Inc. at -41.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.74 times EBITDA. This is generally considered low.
How Well Does AMRX Make Money?
Net Profit Margin
For every $100 in sales, Amneal Pharmaceuticals, Inc. keeps $0.20 as profit after all expenses.
Operating Margin
Core operations generate 9.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.10 in profit for every $100 of shareholder equity.
ROA
Amneal Pharmaceuticals, Inc. generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amneal Pharmaceuticals, Inc. produces operating cash flow of $327.96M, showing steady but balanced cash generation.
Free Cash Flow
Amneal Pharmaceuticals, Inc. produces free cash flow of $244.97M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.78 in free cash annually.
FCF Yield
AMRX converts 5.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
772.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
-41.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-24.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How AMRX Stacks Against Its Sector Peers
| Metric | AMRX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 772.49 | 29.43 | Worse (Expensive) |
| ROE | -5.10% | 800.00% | Weak |
| Net Margin | 0.20% | -20145.00% (disorted) | Weak |
| Debt/Equity | -24.54 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 2.13 | 4.64 | Strong Liquidity |
| ROA | 0.16% | -17936.00% (disorted) | Weak |
AMRX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amneal Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.56%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
91.72%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
7299.02%
Industry Style: Defensive, Growth, Innovation
High Growth