Amphastar Pharmaceuticals, Inc.
Amphastar Pharmaceuticals, Inc. Fundamental Analysis
Amphastar Pharmaceuticals, Inc. (AMPH) shows moderate financial fundamentals with a PE ratio of 9.70, profit margin of 11.00%, and ROE of 10.23%. The company generates $0.7B in annual revenue with weak year-over-year growth of -1.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMPH's fundamental strength across five key dimensions:
Efficiency Score
WeakAMPH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAMPH trades at attractive valuation levels.
Growth Score
WeakAMPH faces weak or negative growth trends.
Financial Health Score
ExcellentAMPH maintains a strong and stable balance sheet.
Profitability Score
WeakAMPH struggles to sustain strong margins.
Key Financial Metrics
Is AMPH Expensive or Cheap?
P/E Ratio
AMPH trades at 9.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMPH's PEG of -0.23 indicates potential undervaluation.
Price to Book
The market values Amphastar Pharmaceuticals, Inc. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.49 times EBITDA. This is generally considered low.
How Well Does AMPH Make Money?
Net Profit Margin
For every $100 in sales, Amphastar Pharmaceuticals, Inc. keeps $11.00 as profit after all expenses.
Operating Margin
Core operations generate 16.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.23 in profit for every $100 of shareholder equity.
ROA
Amphastar Pharmaceuticals, Inc. generates $4.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amphastar Pharmaceuticals, Inc. produces operating cash flow of $164.30M, showing steady but balanced cash generation.
Free Cash Flow
Amphastar Pharmaceuticals, Inc. generates strong free cash flow of $131.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.98 in free cash annually.
FCF Yield
AMPH converts 18.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AMPH Stacks Against Its Sector Peers
| Metric | AMPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.70 | 28.62 | Better (Cheaper) |
| ROE | 10.23% | 783.00% | Weak |
| Net Margin | 11.00% | -48181.00% (disorted) | Strong |
| Debt/Equity | 0.89 | 0.39 | Weak (High Leverage) |
| Current Ratio | 3.85 | 4.12 | Strong Liquidity |
| ROA | 4.81% | -21914.00% (disorted) | Weak |
AMPH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amphastar Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.07%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
6935.86%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
174.33%
Industry Style: Defensive, Growth, Innovation
High Growth