Investors should take notice of NASDAQ:AMPH—it offers a great deal for the fundamentals it presents.

Uncover the potential of AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) as our stock screener's choice for an undervalued stock. NASDAQ:AMPH maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Assessment of NASDAQ:AMPH

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:AMPH has achieved a 9 out of 10:

• Based on the Price/Earnings ratio of 9.55, the valuation of AMPH can be described as reasonable.
• Based on the Price/Earnings ratio, AMPH is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 28.58. AMPH is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 8.43, the valuation of AMPH can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 90.86% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (24.47), we can say AMPH is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, AMPH is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
• 91.94% of the companies in the same industry are more expensive than AMPH, based on the Price/Free Cash Flow ratio.
• AMPH's 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.
• A more expensive valuation may be justified as AMPH's earnings are expected to grow with 14.07% in the coming years.

Evaluating Profitability: NASDAQ:AMPH

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:AMPH has achieved a 9:

• With an excellent Return On Assets value of 10.21%, AMPH belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
• With an excellent Return On Equity value of 21.67%, AMPH belongs to the best of the industry, outperforming 94.09% of the companies in the same industry.
• AMPH's Return On Invested Capital of 12.46% is amongst the best of the industry. AMPH outperforms 90.86% 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.
• Looking at the Profit Margin, with a value of 21.80%, AMPH belongs to the top of the industry, outperforming 94.09% of the companies in the same industry.
• AMPH's Profit Margin has improved in the last couple of years.
• The Operating Margin of AMPH (29.61%) is better than 93.55% of its industry peers.
• In the last couple of years the Operating Margin of AMPH has grown nicely.
• The Gross Margin of AMPH (52.98%) is better than 61.83% of its industry peers.
• AMPH's Gross Margin has improved in the last couple of years.

Unpacking NASDAQ:AMPH's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:AMPH has earned a 6 out of 10:

• An Altman-Z score of 3.00 indicates that AMPH is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.00, AMPH is doing good in the industry, outperforming 73.66% of the companies in the same industry.
• 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's Debt to FCF ratio of 3.51 is amongst the best of the industry. AMPH outperforms 89.78% of its industry peers.
• A Current Ratio of 3.43 indicates that AMPH has no problem at all paying 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.

How We Gauge 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 6 out of 10:

• The Earnings Per Share has grown by an impressive 21.27% over the past year.
• Measured over the past years, AMPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.36% on average per year.
• 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.

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

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.