What it is: A pharmaceutical business, where patents grant a temporary monopoly the pipeline must keep refilling.
Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock. Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
What moves the needle: Operating margin has run around −25% through the cycle on a 76% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 31% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −15%, above 15% in 0 of 7 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Products is 84% of revenue, with Licensing And Royalty the other meaningful line at 14%.

Revenue by product line, FY2025

Products84%$183M
Licensing And Royalty14%$31M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$130M	$181M	$229M	$430M	$614M	$583M	$369M	$307M	$229M	$214M	$217M	RevenueRevenue
74%	75%	76%	78%	79%	79%	—	—	—	—	47%	Gross marginGross mgn
86%	74%	99%	75%	75%	70%	82%	65%	67%	54%	46%	SG&A / revenueSG&A/rev
38%	26%	24%	8%	6%	5%	8%	7%	9%	9%	9%	R&D / revenueR&D/rev
($66M)	($46M)	($108M)	($24M)	($20M)	$11M	($106M)	($68M)	($92M)	($50M)	($45M)	Operating incomeOp. inc.
−50.4%	−25.2%	−47.2%	−5.6%	−3.2%	1.8%	−28.7%	−22.0%	−40.2%	−23.5%	−20.6%	Operating marginOp. mgn
($86M)	($68M)	($116M)	($23M)	($18M)	$8M	($106M)	($59M)	($82M)	($39M)	($34M)	Net incomeNet inc.
											Cash flow & returns
($72M)	($33M)	($95M)	($9M)	($22M)	($67M)	($180M)	$7M	($31M)	$7M	$26M	Operating cash flowOp. cash
$138K	$62K	$23K	$200K	$600K	$600K	$600K	$200K	$100K	—	$100K	DepreciationDeprec.
$784K	$21M	$3M	($18M)	($50M)	($112M)	($101M)	$50M	$33M	$32M	$47M	Working capital & otherWC & other
$21K	$12K	$58K	$2M	$252K	—	—	—	—	—	$252K	CapexCapex
0.0%	0.0%	0.0%	0.6%	0.0%	—	—	—	—	—	0.1%	Capex / revenueCapex/rev
($72M)	($33M)	($95M)	($10M)	($22M)	—	—	—	—	—	$25M	Owner earningsOwner earn.
−55.2%	−18.1%	−41.3%	−2.2%	−3.6%	—	—	—	—	—	11.8%	Owner earnings marginOE mgn
($72M)	($33M)	($95M)	($12M)	($22M)	—	—	—	—	—	$25M	Free cash flowFCF
−55.2%	−18.1%	−41.3%	−2.8%	−3.6%	—	—	—	—	—	11.7%	Free cash flow marginFCF mgn
—	—	—	-30%	-4%	2%	-22%	-15%	-20%	-12%	-8%	ROICROIC
—	—	-76%	-4%	-3%	1%	-18%	-11%	-17%	-8%	-7%	Return on equityROE
—	—	−76%	−4%	−3%	1%	−18%	−11%	−17%	−8%	−7%	Retained to equityRetained/eq
											Balance sheet
$98M	$74M	$249M	$645M	$501M	$454M	$309M	$321M	$294M	$303M	$308M	Cash & investmentsCash+inv
$20M	$45M	$67M	$116M	$155M	$164M	$131M	$134M	$122M	$127M	$108M	ReceivablesReceiv.
$21M	$30M	$58M	$77M	$189M	$235M	$229M	$259M	$166M	$196M	$184M	InventoryInvent.
$6M	$25M	$38M	$50M	$106M	$115M	$65M	$53M	$40M	$45M	$48M	Accounts payablePayables
$34M	$50M	$87M	$143M	$238M	$283M	$295M	$339M	$248M	$277M	$243M	Operating working capitalOper. WC
$146M	$153M	$378M	$855M	$879M	$879M	$689M	$725M	$595M	$650M	$626M	Current assetsCur. assets
$76M	$109M	$157M	$242M	$307M	$371M	$259M	$259M	$180M	$194M	$180M	Current liabilitiesCur. liab.
1.9×	1.4×	2.4×	3.5×	2.9×	2.4×	2.7×	2.8×	3.3×	3.3×	3.5×	Current ratioCurr. ratio
$167M	$162M	$386M	$882M	$966M	$1.1B	$886M	$832M	$685M	$671M	$646M	Total assetsAssets
$101M	$93M	$80M	$100M	$0	$0	—	—	—	—	$124M	Total debtDebt
$3M	$20M	($169M)	($545M)	($501M)	($454M)	—	—	—	—	($184M)	Net debt / (cash)Net debt
-3.5×	-4.7×	-12.2×	-3.7×	-7.5×	81.4×	-7057.9×	-8448.5×	-13113.9×	-7167.1×	-6392.7×	Interest coverageInt. cov.
($9M)	($65M)	$152M	$608M	$628M	$667M	$595M	$552M	$486M	$459M	$449M	Shareholders’ equityEquity
10.5%	7.7%	8.2%	7.2%	7.5%	6.3%	7.1%	5.1%	7.7%	6.5%	5.5%	Stock comp / revenueSBC/rev
											Per share
212M	271M	297M	343M	382M	402M	401M	408M	411M	415M	419M	Shares out (diluted)Shares
$0.61	$0.67	$0.77	$1.25	$1.61	$1.45	$0.92	$0.75	$0.56	$0.51	$0.52	Revenue / shareRev/sh
$-0.41	$-0.25	$-0.39	$-0.07	$-0.05	$0.02	$-0.26	$-0.15	$-0.20	$-0.09	$-0.08	EPS (diluted)EPS
$-0.34	$-0.12	$-0.32	$-0.03	$-0.06	—	—	—	—	—	$0.06	Owner earnings / shareOE/sh
$-0.34	$-0.12	$-0.32	$-0.03	$-0.06	—	—	—	—	—	$0.06	Free cash flow / shareFCF/sh
$0.00	$0.00	$0.00	$0.01	$0.00	—	—	—	—	—	$0.00	Cap. spending / shareCapex/sh
$-0.04	$-0.24	$0.51	$1.78	$1.64	$1.66	$1.48	$1.35	$1.18	$1.11	$1.07	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−1.9%/yr	−20.4%/yr
Capital spending / share	+60.6%/yr (4-yr)	+60.6%/yr (4-yr)
Book value / share	—	−7.6%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

415Mpeak FY2025

ROIC

−12%low FY2019

Gross margin

79%low FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($22M)owner earningsvs.($18M)net incomelow FY2018

Owner-earnings bridge

FY2016–FY2020cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2020 the business reported a $18M loss but ($22M) of owner earnings: $4M less than the profit line, taken out by capital spending and the timing of cash.

	FY2020	FY2019	FY2018	FY2017	FY2016
Reported net income	($18M)	($23M)	($116M)	($68M)	($86M)
Depreciation & amortizationnon-cash charge added back	+$600K	+$200K	+$23K	+$62K	+$138K
Stock-based compensationreal costnon-cash, but a real cost	+$46M	+$31M	+$19M	+$14M	+$14M
Working capital & othertiming of cash in and out, other non-cash items	−$50M	−$18M	+$3M	+$21M	+$784K
Cash from operations	($22M)	($9M)	($95M)	($33M)	($72M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$252K	−$200K	−$23K	−$12K	−$21K
Owner earnings	($22M)	($10M)	($95M)	($33M)	($72M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	−$2M	−$35K	—	—
Free cash flow	($22M)	($12M)	($95M)	($33M)	($72M)
Owner-earnings marginowner earnings ÷ revenue	-4%	-2%	-41%	-18%	-55%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $46M), owner earnings is nearer ($68M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -7167.1×

Does not cover its interest

Operating income ($50M) ÷ interest expense $7K

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$253M

Net cash

Cash $135M + ST investments $168M − debt $50M

What this means
Cash and short-term investments exceed every dollar of debt by $253M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 670d

Long (60+ days)

DSO 217 + DIO 589 − DPO 136 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -15%

Below average through the cycle

7-yr median, range -30%–2%; -11% latest = NOPAT ($40M) ÷ invested capital $374M

Industry peers: median -59%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran -11% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 3%

Positive this year, negative across the cycle

latest $7M = operating cash $7M − maintenance capex $100K (positive this year), after an earlier loss stretch (5-yr median -18%)

Industry peers: median -172%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 3% of revenue this year, a -18% median across 5 years. Treating stock comp as the real expense it is (less $14M of SBC) leaves ($7M).
Are earnings backed by cash? $7M

Loss, but cash-generative

Net income ($39M) · cash from operations $7M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 3%

Reinvests most of it

Dividends + buybacks $194K ÷ Owner Earnings $7M

What this means
Of $7M Owner Earnings, $194K (3%) went back to shareholders, $0 dividends, $194K buybacks. But the buybacks barely exceed stock issued to employees ($14M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.52×

Expanding

Capex $252K ÷ depreciation $100K

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $214M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.34×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $50M vs $455M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 9 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.14/share (latest year $-0.09), the averaged base the calculator's gate runs on, and book value is $1.09/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 1 of 10

What this means
Lost money in 9 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 3 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −41% → −29% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about −41% early to −29% lately, median −25% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2016 · −50.4% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Framed as a capability

The filing positions AI as something the company uses, not something it fears.

“AI technologies offer numerous potential benefits, such as creating or increasing operational efficiencies, and we expect the use of AI and generative AI by us, third parties on our behalf, and other market actors, including our competitors, to increase.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$626M

Cash & short-term investments$308M
Receivables$108M
Inventory$184M
Other current assets$27M

Current liabilities$180M

Accounts payable$48M
Other current liabilities$131M

Current ratio3.48×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.46×stricter: inventory excluded

Cash ratio1.71×strictest: cash alone against what's due

Working capital$446Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+7.4%the freshest read on whether the business is still growing

Current ratio, recent quarters3.0× → 3.5×

Deeper floors

Tangible book value$437Mequity stripped of goodwill & intangibles

Net current asset value$430MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$17M$8M of it operating leases

Deferred revenue$4Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

From the proxy: how much of the business the people running it own, and how they are paid.

Stock-based compensation$14M
The slice of the business handed to employees in shares this year, 7% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Amarin Corporation plc is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 3 tests turned up something to look into; the other 2 came back clean.

Look hereDid receivables and inventory outpace sales?31% → 135% of sales
Receivables and inventory grew from $40M to $292M while revenue grew 67%: working capital is climbing faster than sales (31% of revenue then, 135% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
AKBAAkebia Therapeutics Inc.	$236M	62%	-63.9%	-116%	-28%
ANABAnaptysBio Inc.	$235M	—	-206.9%	-25%	-172%
PBYIPuma Biotechnology Inc	$228M	76%	0.5%	-59%	8%
IDYAIDEAYA Biosciences Inc.	$219M	—	-180.4%	-22%	-191%
VNDAVanda Pharmaceuticals Inc.	$216M	89%	-2.4%	-0%	9%
AMRNAmarin Corporation plc	$214M	77%	-24.3%	-15%	-18%
RYTMRhythm Pharmaceuticals Inc.	$190M	90%	-238.1%	-67%	-176%
STOKStoke Therapeutics Inc.	$184M	—	-559.3%	-79%	-254%
Group median	—	77%	-122.1%	-42%	-100%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Amarin Corporation plc has delivered.

Today’s price $

Base Normalize · through-cycle (($43M)) Net of stock comp (−$12M) Steady-state · maintenance capex ($25M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $25M on 420M shares outstanding, the balance-sheet count at 2026-03-31; net cash $184M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($252K) runs well above depreciation ($100K), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $25M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh AMRN against another business →

The owners of AMRN: the meeting and the votes →

Cite: Owner Scorecard, "Amarin Corporation plc (AMRN), the owner's record," https://ownerscorecard.com/c/AMRN, data as of 2026-07-09.

Manual order: ← AMRC its page in the Manual AMRX →

Industry order: ← AMPH the Pharmaceuticals chapter AMRX →