Amrize Ltd
Amrize Ltd Fundamental Analysis
Amrize Ltd (AMRZ) shows weak financial fundamentals with a PE ratio of 25.13, profit margin of 10.30%, and ROE of 9.54%. The company generates $11.8B in annual revenue with weak year-over-year growth of 0.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMRZ's fundamental strength across five key dimensions:
Efficiency Score
WeakAMRZ struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMRZ shows balanced valuation metrics.
Growth Score
ModerateAMRZ shows steady but slowing expansion.
Financial Health Score
ExcellentAMRZ maintains a strong and stable balance sheet.
Profitability Score
WeakAMRZ struggles to sustain strong margins.
Key Financial Metrics
Is AMRZ Expensive or Cheap?
P/E Ratio
AMRZ trades at 25.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AMRZ's PEG of -2.17 indicates potential undervaluation.
Price to Book
The market values Amrize Ltd at 2.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.40 times EBITDA. This is generally considered low.
How Well Does AMRZ Make Money?
Net Profit Margin
For every $100 in sales, Amrize Ltd keeps $10.30 as profit after all expenses.
Operating Margin
Core operations generate 16.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.54 in profit for every $100 of shareholder equity.
ROA
Amrize Ltd generates $5.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amrize Ltd produces operating cash flow of $2.21B, showing steady but balanced cash generation.
Free Cash Flow
Amrize Ltd generates strong free cash flow of $1.42B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.57 in free cash annually.
FCF Yield
AMRZ converts 4.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AMRZ Stacks Against Its Sector Peers
| Metric | AMRZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.13 | 24.91 | Neutral |
| ROE | 9.54% | 840.00% | Weak |
| Net Margin | 10.30% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.55 | Neutral |
| Current Ratio | 1.64 | 4.94 | Neutral |
| ROA | 5.02% | -4176.00% (disorted) | Weak |
AMRZ outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amrize Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.77%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
51.32%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
52.78%
Industry Style: Cyclical, Commodity, Value
High Growth