Amneal Pharmaceuticals, Inc.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $2.9B vs NCA $975.2M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: 2.0x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity5.53

  ✗Lynch< 0.33

  Cash - Long-term Debt$-2.8B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change61.74% -> 69.74%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.87

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity5.53

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels5.53

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.0x, D/EBITDA=N/A (D&A unavailable)

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity5.53

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-5.5330; #4086/4210 (top 97.1%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 97.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=33.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS97.2x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)20.4x

  ✗Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=97.2x

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=97.2x, FCF Yield=3.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=97.2x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share25.7x

  ✗Ackman<= 25

  Price vs. Trailing Low292% of trailing low ($7.32)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.79%; #2791/6340 (top 44.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.0713; #4893/6449 (top 75.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS97.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.4290; #2835/5247 (top 54.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.18%; #2375/4519 (top 52.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+70.49%; #489/6202 (top 7.9%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 3▾

  AMRX overvalued: all 3 models price fair value below $21.38 (median $11.59)

  Greenblatt fair value$6.87

  ✗Greenblatt-211.2% margin vs $21.38

  Munger fair value$11.59

  ✗Munger-84.5% margin vs $21.38

  Ackman fair value$17.96

  ✗Ackman-19.0% margin vs $21.38
• Profitability6% pass✓ 9✗ 26▾

  15 of 16 flag AMRX's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)3/10 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/10 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-149.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)13.1% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)N/A (negative mean EPS)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 97.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-18.5%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE25.1%

  ✓Lynch> 15%

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=33.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.96%

  ✓PiotroskiROA > 0

  ROA Change YoY-3.34% -> 1.96% (delta: +5.30%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=9.24%, ROA=1.96%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY36.5% -> 36.9%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue6.9%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity25.1%

  ✓Dreman> 12%

  Margin of SafetyP/E=97.2x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-170.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/10 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue15.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity25.1%

  ✓Ackman>= 15%

  5-Year EPS CAGR-18.5% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend8.5% (2023) -> 13.1% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 34.3% -> 36.9%, operating margin 8.5% -> 13.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.79%; #2791/6340 (top 44.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+24.41%; #1767/3702 (top 47.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+25.09%; #589/5226 (top 11.3%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0314; #1968/5884 (top 33.4%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-18.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/8 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 4✗ 9▾

  7 of 8 flag AMRX's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 97.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-18.5%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 15.2% vs Rev: 8.9%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.16 (2018) -> $0.22 (2025)

  ✓DremanPositive over recent years

  EPS CAGR-18.5% CAGR over 5 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/10 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth8.2%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-18.5% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 34.3% -> 36.9%, operating margin 8.5% -> 13.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR8.7%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-18.5% over 5 years

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #1013•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (4/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (1/5)✓AckmanPASS (5/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1168/2370 (Top 49.3%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency38% pass✓ 5✗ 6▾

  5 of 8 flag AMRX's efficiency — Graham, Buffett, Munger +2 more

  Current Ratio1.87

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)6.3%

  ✗Buffett> 10%

  ROIC - WACC-3.7%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)33.9%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.41 -> 2.17

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.80x -> 0.82x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.87

  ✓Dreman> 1.5

  Return on Invested Capital10.9%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=6.6%; FY2024: ROIC=8.7%; FY2025: ROIC=12.4%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC12.4% (RR=100% x ROIC=12.4%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/5 years above 12% (latest 12.4%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag AMRX's cash flow — Buffett, Lynch, Dreman +3 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$88.2M

  ✗LynchPositive and growing

  Operating Cash Flow$340.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=9.24%, ROA=1.96%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)20.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=97.2x, FCF Yield=3.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive8/10 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.3%

  ✗Ackman>= 4%

  Price / FCF per Share25.7x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency10/10 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$88.2M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+1.18%; #2375/4519 (top 52.6%)

  ✗OshaughnessyTop 10% of eligible cross-section