Amneal Pharmaceuticals Inc. Class A Common Stock (AMRX)

FairStock Score: 38/100 — MIXED

Key Financials

Strengths

• Generates $101 million in annual free cash flow (2.5% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• High leverage at 67.51x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Amneal Pharmaceuticals Inc. Class A Common Stock is a small-cap healthcare company valued at $4.1 billion. The business generates $3.0 billion in annual revenue with a 1.2% net margin and $101 million in free cash flow. From a quality standpoint, Amneal shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.1 warrants caution. On valuation, the stock is trading at a premium 32.2x earnings, with PEG of 0.15 suggests growth is underpriced. Growth dynamics show revenue growing at 11.5% and profit growth of 212.8%. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $101 million in annual free cash flow (2.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer