Amneal PharmaceuticalsAMRX -0.49%63 Gross Margin % is 44.31% as of Mar. 2026, which is 21% above its 10-year median of 36.63. GuruFocus rates AMRX with a GF Score™ of 63/100 and a GF Value™ of $7.57 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 938 Drug Manufacturers companies, Amneal Pharmaceuticals ranks worse than 66.84% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Amneal Pharmaceuticals had a gross margin of 44.31% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Amneal Pharmaceuticals Gross Margin % Related Terms
Amneal Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Amneal Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AMRX vs INDV, KNSA, LQDA: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Amneal Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Amneal Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amneal Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amneal Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Amneal Pharmaceuticals (AMRX) has a Gross Margin % of 44.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Amneal Pharmaceuticals and its competitors. This is 21% above median its historical median of 36.63. Over the past decade, Amneal Pharmaceuticals' Gross Margin % has ranged from 21.70 to 58.68. According to the industry distribution chart, Amneal Pharmaceuticals ranks #627 out of 938 companies in the Drug Manufacturers industry, placing it in the top 66.8%.
Is Amneal Pharmaceuticals' Gross Margin % too high?
Amneal Pharmaceuticals' current Gross Margin % of 44.31% is 21% above median its 10-year median of 36.63. Over the past 10 years, this metric has ranged from a low of 21.70 to a high of 58.68. The Drug Manufacturers industry median Gross Margin % is 48.44. Amneal Pharmaceuticals' value of 44.31% is 8.5% below this industry median. Based on the distribution chart, Amneal Pharmaceuticals ranks #627 out of 938 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Amneal Pharmaceuticals has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Amneal Pharmaceuticals' Gross Margin % compare to INDV and KNSA?
According to the Drug Manufacturers industry distribution chart, Amneal Pharmaceuticals ranks #627 out of 938 companies for Gross Margin %. This places Amneal Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.44. Amneal Pharmaceuticals' value of 44.31% is 8.5% below this benchmark. Historically, Amneal Pharmaceuticals' own Gross Margin % has ranged from 21.70 to 58.68 over the past decade. While the company's 10-year median is 36.63 vs. the industry median of 48.44, Amneal Pharmaceuticals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amneal Pharmaceuticals's current Gross Margin % of 44.31% is 8.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Amneal Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amneal Pharmaceuticals's current Gross Margin % is 44.31%, which is 21% above median its own 10-year median of 36.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amneal Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Amneal Pharmaceuticals (AMRX) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.57, compared to a current price of $17.24 — trading 127.7% above its estimated fair value. The current Gross Margin % is 44.31%, which is 21% above median its 10-year median of 36.63 and 8.5% below the Drug Manufacturers industry median of 48.44. Amneal Pharmaceuticals' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Amneal Pharmaceuticals (AMRX), the current Gross Margin % is 44.31% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Amneal Pharmaceuticals (AMRX) Overvalued in 2026?
Based on GuruFocus' analysis, Amneal Pharmaceuticals stock appears to be overvalued.
The current stock price of $17.24 is trading 127.7% above its estimated GF Value™ of $7.57.
GuruFocus considers Amneal Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for AMRX:
Gross Margin %: 44.31% (21% above median its 10-year median of 36.63)
GF Value™: $7.57 vs. price of $17.24 (127.7% above fair value)
Industry Position: 8.5% below the Drug Manufacturers median (#627 of 938)
No single metric tells the full story. See the AMRX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amneal Pharmaceuticals Inc is a pharmaceutical company operating in the U.S., India, and Ireland. With three reportable segments; Affordable Medicines, Specialty, and AvKARE. It develops, manufactures, and distributes a diverse portfolio of essential medicines. The Affordable Medicines segment, which derives maximum revenue, focuses on a wide range of dosage forms and delivery systems, contributing significantly to revenues. The Specialty segment promotes proprietary branded pharmaceuticals, particularly targeting the central nervous system and endocrine disorders. The AvKARE segment provides pharmaceuticals and medical products to governmental agencies, specializing in re-packaging and wholesale distribution, with a focus on offering consistent care and pricing to qualified entities.
63GF Score
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