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Amneal Pharma (AMRX)
:AMRX

Amneal Pharmaceuticals (AMRX) AI Stock Analysis

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Amneal Pharmaceuticals

(NASDAQ:AMRX)

Rating:56Neutral
Price Target:
$8.00
▼(-4.42%Downside)
Amneal Pharmaceuticals' stock score is driven by a strong earnings call performance highlighting growth in key areas, offset by financial challenges such as high leverage and a negative P/E ratio. Technical analysis shows a neutral trend, while valuation concerns persist due to ongoing losses.
Positive Factors
Business Positioning
AMRX's generics business is increasingly well-positioned with a portfolio more focused on complex products and biosimilars, supporting sustainable growth over the next several years.
Product Launch
With the Crexont launch off to a solid start and continued momentum elsewhere across the portfolio, analyst upgrades AMRX to OW from N.
Negative Factors
Market Caution
There is a more mixed view on Crexont and more caution than the Street on overall Gx fundamentals longer-term.

Amneal Pharmaceuticals (AMRX) vs. SPDR S&P 500 ETF (SPY)

Amneal Pharmaceuticals Business Overview & Revenue Model

Company DescriptionAmneal Pharmaceuticals (AMRX) is a global pharmaceutical company that develops, manufactures, and distributes a wide range of generic and specialty pharmaceutical products. The company operates in the healthcare sector, focusing on delivering affordable and high-quality medicines. Amneal's core products include generic medications, complex generics, biosimilars, and specialty pharmaceuticals, catering to various therapeutic areas.
How the Company Makes MoneyAmneal Pharmaceuticals makes money through the development, production, and sale of its pharmaceutical products. The company's primary revenue streams include the sale of generic and specialty pharmaceutical products to wholesalers, distributors, and retail pharmacy chains. Amneal's earnings are bolstered by its extensive portfolio of generic drugs, which allows it to offer cost-effective alternatives to brand-name medications. Additionally, the company invests in research and development to expand its product offerings and enter new therapeutic areas, which can lead to increased sales. Key partnerships and collaborations with other pharmaceutical companies and healthcare providers also contribute to Amneal's revenue by enabling the company to access new markets and enhance its product distribution.

Amneal Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 8.14%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant growth in key areas like CREXONT, biosimilars, and injectables. Despite potential challenges from tariffs and AvKARE channel softness, the company demonstrates robust strategic initiatives and infrastructure expansion, maintaining a positive outlook.
Q1-2025 Updates
Positive Updates
Strong Q1 Performance
Revenue of $695 million grew 5% and adjusted EBITDA of $170 million grew 12%. Adjusted EPS increased by 50%.
CREXONT Market Success
CREXONT for Parkinson’s disease has exceeded expectations with market share surpassing 1% and expected to reach over 3% by year-end. U.S. coverage doubled to 60% of covered lives.
Biosimilars and Injectables Growth
Biosimilars generated $125 million revenue in 2024 with 5 additional regulatory applications filed this year. Injectables portfolio expanded with new launches like BORUZU.
Strategic Partnership and Infrastructure Expansion
Partnership with Metsera in GLP-1s advancing, with a new peptide manufacturing facility and oral fill and finish production facility under construction.
AvKARE Segment Growth
Expected to reach over $900 million revenue by 2027 driven by new launches across distribution, government, and unit dose channels.
Negative Updates
Potential Tariff Impact
Tariffs could affect cost structure, but mitigation strategies include increasing U.S. inventory and renegotiating supply agreements.
AvKARE Channel Softness
Growth in AvKARE government channel partially offset by softness in the lower-margin distribution channel.
Company Guidance
During Amneal Pharmaceuticals' First Quarter 2025 Earnings Call, the company reported strong financial performance with a Q1 revenue of $695 million, a 5% increase from the previous year, and an adjusted EBITDA of $170 million, reflecting a 12% growth. The company's adjusted EPS grew by 50%, driven by broad-based growth across its segments, including a 3% increase in the Specialty segment and a 6% rise in the AvKARE segment revenues. Amneal's product CREXONT, for Parkinson’s disease, exceeded market expectations with a current market share surpassing 1% and is expected to reach over 3% by the end of the year, with U.S. peak sales projected between $300 million to $500 million. Furthermore, the company affirmed its full-year 2025 guidance, anticipating total net revenue between $3 billion and $3.1 billion, adjusted EBITDA of $650 million to $675 million, and adjusted EPS between $0.65 to $0.70, indicating continued confidence in its strategic growth initiatives and operational execution.

Amneal Pharmaceuticals Financial Statement Overview

Summary
Amneal Pharmaceuticals shows solid revenue growth and improving operational margins, but faces challenges with profitability and high leverage. Positive cash flows are present, but debt levels and limited equity buffer pose financial stability risks.
Income Statement
58
Neutral
Amneal Pharmaceuticals shows a steady revenue growth trajectory, with a TTM revenue increase to $2.83 billion. Gross profit margins remain healthy at approximately 36.7% TTM, but the company continues to struggle with profitability, evidenced by a negative net income. EBIT and EBITDA margins have improved to 12.7% and 18.1% TTM, respectively, reflecting better operational efficiency, although net profit margin is negative due to persistent losses.
Balance Sheet
45
Neutral
The company faces high leverage with a debt-to-equity ratio of approximately 1.33 TTM, indicating substantial reliance on debt financing. The equity ratio is concerning at 30.2% TTM, reflecting limited equity buffer against liabilities. Amneal's return on equity remains negative due to ongoing net losses, highlighting challenges in generating shareholder returns.
Cash Flow
62
Positive
Amneal's cash flow position is relatively stable, with positive operating cash flow of $306.9 million TTM, and a consistent free cash flow generation of $238.5 million TTM. The operating cash flow to net income ratio is strong, although free cash flow to net income is strained by negative earnings, indicating adequate but pressured cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.83B2.79B2.39B2.21B2.09B1.99B
Gross Profit1.04B1.02B820.57M791.46M783.95M628.39M
EBITDA565.78M439.77M399.76M150.43M401.10M345.61M
Net Income-13.05M-116.89M-83.99M-129.99M10.62M91.06M
Balance Sheet
Total Assets3.37B3.50B3.47B3.80B3.94B4.01B
Cash, Cash Equivalents and Short-Term Investments59.19M110.55M93.74M27.80M248.96M341.38M
Total Debt2.58B2.59B2.75B2.85B2.88B2.94B
Total Liabilities3.42B3.61B3.45B3.59B3.57B3.66B
Stockholders Equity1.02B-109.27M19.78M298.42M360.34M344.93M
Cash Flow
Free Cash Flow233.37M243.18M276.39M-25.50M189.18M312.81M
Operating Cash Flow306.92M295.10M345.58M65.10M241.82M379.00M
Investing Cash Flow-61.03M-63.00M-69.19M-174.31M-194.18M-317.55M
Financing Cash Flow-227.80M-211.79M-212.57M-106.62M-138.12M131.81M

Amneal Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.37
Price Trends
50DMA
7.62
Positive
100DMA
7.87
Positive
200DMA
8.12
Positive
Market Momentum
MACD
0.19
Negative
RSI
65.61
Neutral
STOCH
79.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRX, the sentiment is Positive. The current price of 8.37 is above the 20-day moving average (MA) of 7.89, above the 50-day MA of 7.62, and above the 200-day MA of 8.12, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRX.

Amneal Pharmaceuticals Risk Analysis

Amneal Pharmaceuticals disclosed 54 risk factors in its most recent earnings report. Amneal Pharmaceuticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Amneal Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥343.99B10.61-2.88%2.57%11.80%-6.84%
61
Neutral
$1.80B-18.12%28.25%80.86%
56
Neutral
$2.57B106.97%13.42%92.50%
55
Neutral
$2.05B-31.51%
53
Neutral
$3.00B-14.40%-23.84%
48
Neutral
$2.27B78.99%10238.41%47.67%
41
Neutral
$2.99B-30.57%-147.80%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMRX
Amneal Pharmaceuticals
8.37
1.70
25.49%
FOLD
Amicus
5.95
-4.07
-40.62%
VKTX
Viking Therapeutics
27.72
-23.55
-45.93%
IBRX
ImmunityBio
2.64
-3.72
-58.49%
MLTX
MoonLake Immunotherapeutics
47.86
5.83
13.87%
NAMS
NewAmsterdam Pharma Company
18.96
-1.04
-5.20%

Amneal Pharmaceuticals Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Amneal Pharmaceuticals Approves Key Proposals at Annual Meeting
Neutral
May 8, 2025

Amneal Pharmaceuticals held its 2025 Annual Meeting of Stockholders on May 6, 2025, where all proposals were approved, and all director nominees were elected. The meeting included the election of directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025. These approvals are expected to support the company’s governance and operational strategies moving forward.

Financial Disclosures
Amneal Pharmaceuticals Reports Strong Q1 2025 Financial Results
Positive
May 2, 2025

Amneal Pharmaceuticals reported strong financial results for the first quarter of 2025, with net revenue reaching $695 million, a 5% increase from the previous year. The company achieved a net income of $12 million, a significant improvement from a net loss of $92 million in the same quarter of 2024, driven by higher revenue, gross profit, and the absence of a previous legal settlement charge. The company also reported an adjusted EBITDA of $170 million, reflecting a 12% increase, and affirmed its full-year 2025 financial guidance, indicating confidence in its growth trajectory and value creation for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 07, 2025