AMNEAL PHARMACEUTICALS INC (AMRX) Stock Fundamental Analysis
USA - NASDAQ:AMRX - US03168L1052 - Common Stock
11.52 USD
-0.38 (-3.19%)
11.52 USD
0 (0%)
Taking everything into account, AMRX scores 5 out of 10 in our fundamental rating. AMRX was compared to 191 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of AMRX while its profitability can be described as average. AMRX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AMRX had positive earnings in the past year.
In the past year AMRX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AMRX reported negative net income in multiple years.
In the past 5 years AMRX always reported a positive cash flow from operatings.
1.2 Ratios
AMRX has a better Return On Assets (0.10%) than 79.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.52%, AMRX belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMRX is significantly below the industry average of 15.35%.
The 3 year average ROIC (7.98%) for AMRX is below the current ROIC(11.52%), indicating increased profibility in the last year.
| 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 in the better half of the industry: AMRX outperforms 79.06% of its industry peers.
The Operating Margin of AMRX (13.31%) is better than 85.34% of its industry peers.
AMRX's Operating Margin has improved in the last couple of years.
AMRX has a Gross Margin (37.67%) which is in line with its industry peers.
In the last couple of years the Gross Margin of AMRX has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AMRX 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.
The debt/assets ratio for AMRX has been reduced compared to a year ago.
2.2 Solvency
AMRX has an Altman-Z score of 1.77. This is a bad value and indicates that AMRX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AMRX (1.77) is better than 62.83% of its industry peers.
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 78.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.66 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.14
WACC10.06%
2.3 Liquidity
A Current Ratio of 1.43 indicates that AMRX should not have too much problems paying its short term obligations.
AMRX has a Current ratio of 1.43. This is in the lower half of the industry: AMRX underperforms 70.68% 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 78.53% 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 25.00%, which is quite impressive.
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%.
AMRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.43% yearly.
EPS 1Y (TTM)25%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%6.25%
Revenue 1Y (TTM)16.73%
Revenue growth 3Y10.1%
Revenue growth 5Y11.43%
Sales Q2Q%11.68%
3.2 Future
Based on estimates for the next years, AMRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.95% on average per year.
The Revenue is expected to grow by 0.60% on average over the next years.
EPS Next Y40.53%
EPS Next 2Y28.74%
EPS Next 3Y26.98%
EPS Next 5Y11.95%
Revenue Next Year8.74%
Revenue Next 2Y7.7%
Revenue Next 3Y7.95%
Revenue Next 5Y0.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.36, which indicates a correct valuation of AMRX.
Based on the Price/Earnings ratio, AMRX is valued cheaper than 85.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. AMRX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.98, the valuation of AMRX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AMRX is valued cheaply inside the industry as 85.34% of the companies are valued more expensively.
AMRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMRX indicates a rather cheap valuation: AMRX is cheaper than 89.53% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMRX indicates a rather cheap valuation: AMRX is cheaper than 87.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 9.44 |
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.
A more expensive valuation may be justified as AMRX's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)0.38
PEG (5Y)1.44
EPS Next 2Y28.74%
EPS Next 3Y26.98%
5. Dividend
5.1 Amount
AMRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.52
-0.38 (-3.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners41.99%
Inst Owner Change1.87%
Ins Owners46.35%
Ins Owner Change-5.08%
Market Cap3.62B
Revenue(TTM)2.79B
Net Income(TTM)3.38M
Analysts82
Price Target12.24 (6.25%)
Short Float %3.69%
Short Ratio3.75
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)2.13%
EPS NQ rev (1m)-12.7%
EPS NQ rev (3m)-21.43%
EPS NY rev (1m)4.12%
EPS NY rev (3m)13.35%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 11.98 | ||
| P/S | 1.27 | ||
| P/FCF | 13.83 | ||
| P/OCF | 10.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.44 |
EPS(TTM)0.75
EY6.51%
EPS(NY)0.96
Fwd EY8.34%
FCF(TTM)0.83
FCFY7.23%
OCF(TTM)1.12
OCFY9.7%
SpS9.08
BVpS-0.36
TBVpS-4.33
PEG (NY)0.38
PEG (5Y)1.44
Graham NumberN/A
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%
ROICexgc growth 3Y25.12%
ROICexgc 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 | 1.77 |
F-Score7
WACC10.06%
ROIC/WACC1.14
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)25%
EPS 3Y-11.61%
EPS 5Y10.63%
EPS Q2Q%6.25%
EPS Next Y40.53%
EPS Next 2Y28.74%
EPS Next 3Y26.98%
EPS Next 5Y11.95%
Revenue 1Y (TTM)16.73%
Revenue growth 3Y10.1%
Revenue growth 5Y11.43%
Sales Q2Q%11.68%
Revenue Next Year8.74%
Revenue Next 2Y7.7%
Revenue Next 3Y7.95%
Revenue Next 5Y0.6%
EBIT growth 1Y26.75%
EBIT growth 3Y17.2%
EBIT growth 5YN/A
EBIT Next Year14%
EBIT Next 3Y11.66%
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%
AMNEAL PHARMACEUTICALS INC / AMRX FAQ
What is the fundamental rating for AMRX stock?
ChartMill assigns a fundamental rating of 5 / 10 to AMRX.
What is the valuation status of AMNEAL PHARMACEUTICALS INC (AMRX) stock?
ChartMill assigns a valuation rating of 8 / 10 to AMNEAL PHARMACEUTICALS INC (AMRX). This can be considered as Undervalued.
How profitable is AMNEAL PHARMACEUTICALS INC (AMRX) stock?
AMNEAL PHARMACEUTICALS INC (AMRX) has a profitability rating of 6 / 10.
What is the financial health of AMNEAL PHARMACEUTICALS INC (AMRX) stock?
The financial health rating of AMNEAL PHARMACEUTICALS INC (AMRX) is 3 / 10.
What is the earnings growth outlook for AMNEAL PHARMACEUTICALS INC?
The Earnings per Share (EPS) of AMNEAL PHARMACEUTICALS INC (AMRX) is expected to grow by 40.53% in the next year.