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Amexdrug Corporation

AXRX
46
Drug Manufacturers - Specialty & Generic · Healthcare
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Amexdrug Corporation is a small specialty and generic drug company that develops and sells pharmaceutical products. It focuses on manufacturing medications that are either copies of existing branded drugs (generics) or specialized formulations targeting specific medical needs. The company sells primarily to pharmacies, hospitals, and healthcare distributors.

Amexdrug generates revenue by selling its drug products directly to customers in the pharmaceutical supply chain. It operates at a modest scale, reflected in its near-zero market capitalization, and competes in a crowded generic drug market where pricing pressure from larger manufacturers is a constant challenge. With an operating margin just under 5%, the company has limited financial cushion, and its main risk is the difficulty of competing against much larger generic drug makers who can produce at lower costs and have stronger distribution networks.

Winston Score History

Score breakdown

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Quality

Gross Margin
55.5%
Premium pricing power — 55.5% gross margin
Operating Margin
6.4%
Modest — 6.4% operating margin
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-12.9%
Shrinking sales (-12.9% YoY)
EPS YoY
+400.0%
Earnings growing fast (400.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
0%
Weak — only 0% of profit becomes cash
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.23
Conservative — low debt load (0.23)
Interest Cover
1.54x
Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
0.4x
no trend
Attractive valuation — P/E 0.4

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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