16.26 USD
-0.25 (-1.51%)
AMRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. While AMRN seems to be doing ok healthwise, there are quite some concerns on its profitability. AMRN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AMRN had negative earnings in the past year.
- In the past year AMRN has reported a negative cash flow from operations.
- In the past 5 years AMRN reported 4 times negative net income.
- In the past 5 years AMRN reported 4 times negative operating cash flow.
1.2 Ratios
- The Return On Assets of AMRN (-13.12%) is better than 81.71% of its industry peers.
- AMRN's Return On Equity of -18.87% is amongst the best of the industry. AMRN outperforms 83.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.12% | ||
| ROE | -18.87% | ||
| ROIC | N/A |
ROA(3y)-10.35%
ROA(5y)-6.44%
ROE(3y)-15.13%
ROE(5y)-9.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AMRN has a better Gross Margin (54.96%) than 77.14% of its industry peers.
- AMRN's Gross Margin has declined in the last couple of years.
- AMRN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.34%
GM growth 5Y-7.86%
2. Health
2.1 Basic Checks
- AMRN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for AMRN has been increased compared to 1 year ago.
- The number of shares outstanding for AMRN has been increased compared to 5 years ago.
- There is no outstanding debt for AMRN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- AMRN has an Altman-Z score of -1.60. This is a bad value and indicates that AMRN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AMRN (-1.60) is comparable to the rest of the industry.
- AMRN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.6 |
ROIC/WACCN/A
WACC7.65%
2.3 Liquidity
- AMRN has a Current Ratio of 3.45. This indicates that AMRN is financially healthy and has no problem in meeting its short term obligations.
- AMRN's Current ratio of 3.45 is in line compared to the rest of the industry. AMRN outperforms 41.71% of its industry peers.
- AMRN has a Quick Ratio of 2.43. This indicates that AMRN is financially healthy and has no problem in meeting its short term obligations.
- AMRN's Quick ratio of 2.43 is on the low side compared to the rest of the industry. AMRN is outperformed by 69.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.45 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
- AMRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.56%, which is quite impressive.
- AMRN shows a decrease in Revenue. In the last year, the revenue decreased by -5.93%.
- The Revenue for AMRN have been decreasing by -11.86% on average. This is quite bad
EPS 1Y (TTM)65.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.67%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y-26.81%
Revenue growth 5Y-11.86%
Sales Q2Q%17.43%
3.2 Future
- Based on estimates for the next years, AMRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.76% on average per year.
- AMRN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.83% yearly.
EPS Next Y95.83%
EPS Next 2Y41.26%
EPS Next 3Y25.8%
EPS Next 5Y17.76%
Revenue Next Year6.41%
Revenue Next 2Y-6.99%
Revenue Next 3Y-5.16%
Revenue Next 5Y26.83%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- AMRN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AMRN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as AMRN's earnings are expected to grow with 25.80% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.26%
EPS Next 3Y25.8%
5. Dividend
5.1 Amount
- No dividends for AMRN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMARIN CORP PLC -ADR / AMRN FAQ
What is the fundamental rating for AMRN stock?
ChartMill assigns a fundamental rating of 3 / 10 to AMRN.
What is the valuation status for AMRN stock?
ChartMill assigns a valuation rating of 2 / 10 to AMARIN CORP PLC -ADR (AMRN). This can be considered as Overvalued.
Can you provide the profitability details for AMARIN CORP PLC -ADR?
AMARIN CORP PLC -ADR (AMRN) has a profitability rating of 2 / 10.
What is the earnings growth outlook for AMARIN CORP PLC -ADR?
The Earnings per Share (EPS) of AMARIN CORP PLC -ADR (AMRN) is expected to grow by 95.83% in the next year.