Amneal Pharmaceuticals: By Most Measures, A Fundamentally Undervalued Company

Summary

  • Amneal Pharmaceuticals' stock price has been on a strong bull run, now exceeding $5 per share and up over >145% this year.
  • The company experienced losses in 2018 and 2019 but has since seen improvements in revenues and net income as the management team has been replaced.
  • Amneal has made strategic acquisitions and has shown progress in its financials, leading to a positive outlook for 2024 and beyond.
  • Compared to enterprises with similar revenues, profits, and areas of business, Amneal looks substantially undervalued.
  • There are pitfalls the company must avoid to prevent another market sell-off - but ultimately, the numbers speak for themselves - Amneal deserves a valuation upgrade.
  • Looking for a helping hand in the market? Members of Haggerston BioHealth get exclusive ideas and guidance to navigate any climate. Learn More »
Office notebook with text written note I FEEL UNAPPRECIATED - feeling undervalued at work when hard work and achievements go unnoticed or not recognized

ariya j/iStock via Getty Images

Investment Overview

I last covered Amneal Pharmaceuticals (NASDAQ:AMRX) for Seeking Alpha in a post published in March 2022. I gave the stock a "Buy" rating - at the time, Amneal stock traded at $4 per share, and although it had sunk as low as $1.3 per

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AMRX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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