Amneal Pharmaceuticals, Inc.
Amneal Pharmaceuticals, Inc. Fundamental Analysis
Amneal Pharmaceuticals, Inc. (AMRX) shows weak financial fundamentals with a PE ratio of 51.65, profit margin of 2.39%, and ROE of -67.91%. The company generates $3.0B 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 368.3/100 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
ModerateAMRX shows balanced valuation metrics.
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 51.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AMRX's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Amneal Pharmaceuticals, Inc. at -52.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.17 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 $2.39 as profit after all expenses.
Operating Margin
Core operations generate 10.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-67.91 in profit for every $100 of shareholder equity.
ROA
Amneal Pharmaceuticals, Inc. generates $1.96 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 $341.36M, showing steady but balanced cash generation.
Free Cash Flow
Amneal Pharmaceuticals, Inc. produces free cash flow of $237.90M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.76 in free cash annually.
FCF Yield
AMRX converts 6.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
-52.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-38.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.68
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How AMRX Stacks Against Its Sector Peers
| Metric | AMRX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.65 | 28.25 | Worse (Expensive) |
| ROE | -67.91% | 780.00% | Weak |
| Net Margin | 2.39% | -20122.00% (disorted) | Weak |
| Debt/Equity | -38.65 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 2.17 | 4.66 | Strong Liquidity |
| ROA | 1.96% | -14687.00% (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