AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) is an undervalued gem with solid fundamentals.

AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) was identified as a decent value stock by our stock screener. 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.

Understanding AMPH's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. AMPH has earned a 8 for valuation:

• With a Price/Earnings ratio of 6.24, the valuation of AMPH can be described as very cheap.
• Based on the Price/Earnings ratio, AMPH is valued cheaper than 94.44% of the companies in the same industry.
• AMPH is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 7.53, which indicates a rather cheap valuation of AMPH.
• Based on the Price/Forward Earnings ratio, AMPH is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (21.65), we can say AMPH is valued rather cheaply.
• 93.94% of the companies in the same industry are more expensive than AMPH, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, AMPH is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
• The excellent profitability rating of AMPH may justify a higher PE ratio.

Profitability Insights: 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, AMPH has achieved a 8:

• With an excellent Return On Assets value of 10.11%, AMPH belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
• With an excellent Return On Equity value of 21.78%, AMPH belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
• The Return On Invested Capital of AMPH (12.13%) is better than 88.89% of its industry peers.
• Looking at the Profit Margin, with a value of 21.79%, AMPH belongs to the top of the industry, outperforming 94.44% 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 (28.06%) than 93.43% of its industry peers.
• In the last couple of years the Operating Margin of AMPH has grown nicely.
• AMPH has a better Gross Margin (51.08%) than 62.63% of its industry peers.
• In the last couple of years the Gross Margin of AMPH has grown nicely.

Evaluating Health: AMPH

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. AMPH has achieved a 6 out of 10:

• Looking at the Altman-Z score, with a value of 2.48, AMPH is in the better half of the industry, outperforming 73.23% of the companies in the same industry.
• AMPH has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as AMPH would need 3.49 years to pay back of all of its debts.
• The Debt to FCF ratio of AMPH (3.49) is better than 89.39% of its industry peers.
• A Current Ratio of 3.07 indicates that AMPH has no problem at all paying its short term obligations.
• AMPH has a Quick Ratio of 2.19. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.

How We Gauge Growth for AMPH

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. AMPH scores a 5 out of 10:

• AMPH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.97%, which is quite good.
• Measured over the past years, AMPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 61.62% on average per year.
• The Revenue has grown by 13.59% in the past year. This is quite good.
• AMPH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.82% yearly.

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

Check the latest full fundamental report of AMPH for a complete fundamental analysis.

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.