AMNEAL PHARMACEUTICALS INC (AMRX) Stock Fundamental Analysis
USA - NASDAQ:AMRX - US03168L1052 - Common Stock
9.97 USD
-0.32 (-3.11%)
9.95 USD
-0.02 (-0.2%)
AMRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 196 industry peers in the Pharmaceuticals industry. AMRX scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AMRX.
1. Profitability
1.1 Basic Checks
In the past year AMRX was profitable.
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.
Each year in the past 5 years AMRX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.10%, AMRX belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
The Return On Invested Capital of AMRX (11.52%) is better than 88.27% of its industry peers.
AMRX had an Average Return On Invested Capital over the past 3 years of 7.98%. This is significantly below the industry average of 15.30%.
The last Return On Invested Capital (11.52%) for AMRX is above the 3 year average (7.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | N/A | ||
| ROIC | 11.52% |
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 Profit Margin of 0.12%. This is amongst the best in the industry. AMRX outperforms 80.10% of its industry peers.
AMRX has a better Operating Margin (13.31%) than 84.69% of its industry peers.
AMRX's Operating Margin has improved in the last couple of years.
AMRX has a Gross Margin of 37.67%. This is comparable to the rest of the industry: AMRX outperforms 59.18% of its industry peers.
AMRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.31% | ||
| PM (TTM) | 0.12% | ||
| GM | 37.67% |
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%
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.
AMRX has less shares outstanding than it did 1 year ago.
AMRX has more shares outstanding than it did 5 years ago.
AMRX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that AMRX is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.68, AMRX is doing good in the industry, outperforming 61.73% of the companies in the same industry.
The Debt to FCF ratio of AMRX is 9.66, which is on the high side as it means it would take AMRX, 9.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.66, AMRX is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.66 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.18
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.43 indicates that AMRX should not have too much problems paying its short term obligations.
AMRX's Current ratio of 1.43 is on the low side compared to the rest of the industry. AMRX is outperformed by 69.39% of its industry peers.
AMRX has a Quick Ratio of 1.43. This is a bad value and indicates that AMRX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMRX (0.88) is worse than 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
AMRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.46%, which is quite good.
The Earnings Per Share has been growing by 10.63% on average over the past years. This is quite good.
AMRX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.73%.
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)17.46%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%56.25%
Revenue 1Y (TTM)16.73%
Revenue growth 3Y10.1%
Revenue growth 5Y11.43%
Sales Q2Q%3.24%
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 Y34.97%
EPS Next 2Y26.16%
EPS Next 3Y24.1%
EPS Next 5Y11.95%
Revenue Next Year8.28%
Revenue Next 2Y7.29%
Revenue Next 3Y7.67%
Revenue Next 5Y0.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.47, the valuation of AMRX can be described as correct.
Based on the Price/Earnings ratio, AMRX is valued cheaply inside the industry as 88.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMRX to the average of the S&P500 Index (27.02), we can say AMRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.80, the valuation of AMRX can be described as reasonable.
Based on the Price/Forward Earnings ratio, AMRX is valued cheaply inside the industry as 84.69% of the companies are valued more expensively.
AMRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
90.31% of the companies in the same industry are more expensive than AMRX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AMRX is valued cheaper than 88.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMRX has a very decent profitability rating, which may justify a higher PE ratio.
AMRX's earnings are expected to grow with 24.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)1.27
EPS Next 2Y26.16%
EPS Next 3Y24.1%
5. Dividend
5.1 Amount
AMRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.97
-0.32 (-3.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners41.99%
Inst Owner Change0%
Ins Owners46.35%
Ins Owner Change-3.49%
Market Cap3.13B
Analysts82
Price Target12.24 (22.77%)
Short Float %3.24%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.21%
Min EPS beat(2)40.06%
Max EPS beat(2)40.37%
EPS beat(4)3
Avg EPS beat(4)18.44%
Min EPS beat(4)-22.85%
Max EPS beat(4)40.37%
EPS beat(8)7
Avg EPS beat(8)29.41%
EPS beat(12)10
Avg EPS beat(12)26.58%
EPS beat(16)11
Avg EPS beat(16)18.46%
Revenue beat(2)0
Avg Revenue beat(2)-4.66%
Min Revenue beat(2)-4.71%
Max Revenue beat(2)-4.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-4.71%
Max Revenue beat(4)1.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.09%
Revenue beat(16)8
Avg Revenue beat(16)-0.43%
PT rev (1m)0%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.27%
EPS NY rev (1m)3.02%
EPS NY rev (3m)8.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 10.8 | ||
| P/S | 1.1 | ||
| P/FCF | 11.97 | ||
| P/OCF | 8.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)0.74
EY7.42%
EPS(NY)0.92
Fwd EY9.26%
FCF(TTM)0.83
FCFY8.35%
OCF(TTM)1.12
OCFY11.21%
SpS9.08
BVpS-0.36
TBVpS-4.33
PEG (NY)0.39
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | N/A | ||
| ROCE | 16.4% | ||
| ROIC | 11.52% | ||
| ROICexc | 11.84% | ||
| ROICexgc | 23.31% | ||
| OM | 13.31% | ||
| PM (TTM) | 0.12% | ||
| GM | 37.67% | ||
| FCFM | 9.17% |
ROA(3y)-3.06%
ROA(5y)-1.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.98%
ROIC(5y)6.53%
ROICexc(3y)8.26%
ROICexc(5y)6.86%
ROICexgc(3y)18.59%
ROICexgc(5y)15.87%
ROCE(3y)10.57%
ROCE(5y)8.54%
ROICexcg growth 3Y25.12%
ROICexcg growth 5YN/A
ROICexc growth 3Y27.15%
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.66 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 36.48% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 56.16% | ||
| Profit Quality | 7750.49% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.68 |
F-Score7
WACC9.79%
ROIC/WACC1.18
Cap/Depr(3y)33.21%
Cap/Depr(5y)30.06%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.46%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%56.25%
EPS Next Y34.97%
EPS Next 2Y26.16%
EPS Next 3Y24.1%
EPS Next 5Y11.95%
Revenue 1Y (TTM)16.73%
Revenue growth 3Y10.1%
Revenue growth 5Y11.43%
Sales Q2Q%3.24%
Revenue Next Year8.28%
Revenue Next 2Y7.29%
Revenue Next 3Y7.67%
Revenue Next 5Y0.6%
EBIT growth 1Y26.75%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year13.13%
EBIT Next 3Y10.06%
EBIT Next 5Y3.87%
FCF growth 1Y129.81%
FCF growth 3Y5.18%
FCF growth 5YN/A
OCF growth 1Y76.74%
OCF growth 3Y6.86%
OCF growth 5Y180.48%