ANI Pharmaceuticals Inc. (ANIP)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $119 million in annual free cash flow (6.6% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 16.2% above cost of capital
• Revenue growth of 29.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($42) with negative 86% margin of safety—limited downside protection

AI Analysis

ANI Pharmaceuticals Inc. is a micro-cap healthcare company valued at $1.8 billion. The business generates $883 million in annual revenue with a 3.1% net margin and $119 million in free cash flow. From a quality standpoint, ANI shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is reasonably priced at 23.5x earnings, with trades above its Graham Number with a negative 86% margin. Growth dynamics show revenue growing at 29.6% and profit growth of 367.5%. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

ANI's 30% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $119 million in annual free cash flow (6.6% 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 healthcare space. 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