NASDAQ:AMPH, an undervalued stock with good fundamentals.

Last update: Mar 12, 2024

AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) was identified as a decent value stock by our stock screener. NASDAQ:AMPH scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Analysis for NASDAQ:AMPH

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:AMPH boasts a 8 out of 10:

Based on the Price/Earnings ratio, AMPH is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
AMPH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.97, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.99, the valuation of AMPH can be described as very reasonable.
AMPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMPH is cheaper than 88.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.30. AMPH is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, AMPH is valued cheaper than 86.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 88.56% of the companies listed in the same industry.
The excellent profitability rating of AMPH may justify a higher PE ratio.
A more expensive valuation may be justified as AMPH's earnings are expected to grow with 13.76% in the coming years.

Profitability Insights: NASDAQ:AMPH

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:AMPH has earned a 9 out of 10:

AMPH has a better Return On Assets (9.09%) than 93.03% of its industry peers.
AMPH has a Return On Equity of 21.50%. This is amongst the best in the industry. AMPH outperforms 93.03% of its industry peers.
The Return On Invested Capital of AMPH (12.33%) is better than 90.55% of its industry peers.
The 3 year average ROIC (11.94%) for AMPH is below the current ROIC(12.33%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 21.33%, AMPH belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
AMPH's Profit Margin has improved in the last couple of years.
AMPH has a better Operating Margin (30.57%) than 95.02% of its industry peers.
AMPH's Operating Margin has improved in the last couple of years.
AMPH's Gross Margin of 54.48% is fine compared to the rest of the industry. AMPH outperforms 64.68% of its industry peers.
AMPH's Gross Margin has improved in the last couple of years.

Assessing Health for NASDAQ:AMPH

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AMPH has received a 5 out of 10:

Looking at the Altman-Z score, with a value of 2.89, AMPH is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
AMPH has a Debt to FCF ratio of 4.06. This is amongst the best in the industry. AMPH outperforms 87.56% of its industry peers.
AMPH has a Current Ratio of 2.17. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Growth for NASDAQ:AMPH?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:AMPH has received a 5 out of 10:

AMPH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.51%, which is quite impressive.
The Earnings Per Share has been growing by 70.36% on average over the past years. This is a very strong growth
Looking at the last year, AMPH shows a very strong growth in Revenue. The Revenue has grown by 29.14%.
Measured over the past years, AMPH shows a quite strong growth in Revenue. The Revenue has been growing by 16.94% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of AMPH

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.