Amrize Ltd Ordinary Shares (AMRZ)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $1.6 billion in annual free cash flow (5.0% yield on market cap)
• Solid return on equity of 10.2% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.48, providing financial flexibility
• Established organization with 19,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($34) with negative 68% margin of safety—limited downside protection
• Revenue declining at 0.3% year-over-year signals potential demand weakness or market share loss
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Amrize Ltd Ordinary Shares is a mid-cap basic materials company valued at $31.5 billion. The business generates $11.8 billion in annual revenue with a 2.5% net margin and $1.6 billion in free cash flow. From a quality standpoint, Amrize shows Altman Z-Score of 2.0 in the grey zone and adequate 10% ROE. On valuation, the stock is trading at a premium 26.6x earnings, with trades above its Graham Number with a negative 68% margin. Growth dynamics show revenue growing at -0.3% and profit growth of -35.1%. Our composite FairStock Score of 46/100 reflects mixed 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 $1.6 billion in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Sluggish -0% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

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