Pharmaceutical Preparations
Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.
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Discounted Cash Flow Valuation of Amneal Pharmaceuticals, Inc.
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $158.7M | $144M | $130.6M | $118.5M | $107.5M | $97.53M | $88.48M | $80.27M | $72.82M | $66.06M | $59.93M | $599.3M |
DCF | $125.2M | $98.78M | $77.92M | $61.47M | $48.49M | $38.25M | $30.18M | $23.8M | $18.78M | $14.81M | $148.1M | |
Value | $685.8M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|
Net Margin | 0% | 0% | -12% | -37% | 3.4% | 0.51% | -12% | -3.5% | -6.4% |
ROA | - | - | -0.45% | -6% | 2.3% | 3.9% | -2.5% | 5.9% | 4.6% |
ROE | - | 0% | -22% | -170% | 20% | 2.9% | -91% | -420% | 250% |
The average Net Margin over the past 5 years is -10.17%.
The trend of Net Margin over the past 5 years is +3.28%.
The average ROA over the past 5 years is +0.51%.
The trend of ROA over the past 5 years is +1.25%.
The average ROE over the past 5 years is -114.02%.
The trend of ROE over the past 5 years is -50.09%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | 11.29 | 16.20 | -58.95 | 8.84 | 14.23 | 142.61 | 8.53 | 16.14 | |
Debt Equity | - | 579.61 | 3.02 | 7.73 | 8.26 | 7.52 | 8.93 | 128.82 | -40.27 | |
MIN | ||||||||||
Graham Stability | - | - | - | - | - | - | - | - | - |
The Debt/FCF trailing twelve month is 16.14.
The trend of Debt/FCF over the past 5 years is 16.33.
Graham’s Stability measure stands at -.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 13% | 7.6% | 6.3% | 8.2% | -3% |
Net Income | - | - | - | - | 0% |
Stockholders Equity | - | -53% | -61% | -93% | -4.7K% |
FCF | - | 13% | -2.1% | 1.5K% | 210% |
The Revenue CAGR over the past 5 years is +7.56%.
The trend of Revenue growth rate over the past 5 years is -2.97%.
The Earnings CAGR over the past 5 years is -16.04%.
The trend of Earnings growth rate over the past 5 years is 0%.
The Equity CAGR over the past 5 years is -53.25%.
The trend of Equity growth rate over the past 5 years is -4.71K%.
The FCF CAGR over the past 5 years is +12.59%.
The trend of FCF growth rate over the past 5 years is +206.07%.