NASDAQ:AMPH is an undervalued gem with solid fundamentals.

Our stock screener has singled out AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) as a stellar value proposition. NASDAQ:AMPH not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:AMPH was assigned a score of 9 for valuation:

• AMPH is valuated reasonably with a Price/Earnings ratio of 9.50.
• Based on the Price/Earnings ratio, AMPH is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 27.48. AMPH is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 8.38, which indicates a very decent valuation of AMPH.
• 90.76% of the companies in the same industry are more expensive than AMPH, based on the Price/Forward Earnings ratio.
• When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (23.73), we can say AMPH is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 91.30% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, AMPH is valued cheaply inside the industry as 91.85% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of AMPH may justify a higher PE ratio.
• AMPH's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AMPH, the assigned 9 is noteworthy for profitability:

• The Return On Assets of AMPH (10.21%) is better than 93.48% of its industry peers.
• AMPH's Return On Equity of 21.67% is amongst the best of the industry. AMPH outperforms 94.02% of its industry peers.
• The Return On Invested Capital of AMPH (12.46%) is better than 90.76% of its industry peers.
• The 3 year average ROIC (11.94%) for AMPH is below the current ROIC(12.46%), indicating increased profibility in the last year.
• The Profit Margin of AMPH (21.80%) is better than 94.02% of its industry peers.
• In the last couple of years the Profit Margin of AMPH has grown nicely.
• AMPH has a Operating Margin of 29.61%. This is amongst the best in the industry. AMPH outperforms 93.48% of its industry peers.
• In the last couple of years the Operating Margin of AMPH has grown nicely.
• AMPH has a better Gross Margin (52.98%) than 61.41% of its industry peers.
• In the last couple of years the Gross Margin of AMPH has grown nicely.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:AMPH, the assigned 6 reflects its health status:

• AMPH has an Altman-Z score of 3.00. This indicates that AMPH is financially healthy and has little risk of bankruptcy at the moment.
• AMPH has a better Altman-Z score (3.00) than 74.46% of its industry peers.
• The Debt to FCF ratio of AMPH is 3.51, which is a good value as it means it would take AMPH, 3.51 years of fcf income to pay off all of its debts.
• AMPH has a Debt to FCF ratio of 3.51. This is amongst the best in the industry. AMPH outperforms 90.76% of its industry peers.
• AMPH has a Current Ratio of 3.43. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
• AMPH has a Quick Ratio of 2.61. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.

Looking at the Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:AMPH has achieved a 6 out of 10:

• AMPH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.27%, which is quite impressive.
• AMPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.36% yearly.
• AMPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
• The Revenue has been growing by 16.94% on average over the past years. This is quite good.
• The Revenue is expected to grow by 8.30% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of AMPH contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.