AMPHASTAR PHARMACEUTICALS IN (AMPH) Stock Fundamental Analysis
NASDAQ:AMPH - Nasdaq - US03209R1032 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AMPH. AMPH was compared to 195 industry peers in the Pharmaceuticals industry. While AMPH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AMPH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, AMPH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
AMPH had positive earnings in the past year.
In the past year AMPH had a positive cash flow from operations.
AMPH had positive earnings in each of the past 5 years.
Each year in the past 5 years AMPH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.71%, AMPH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
AMPH has a better Return On Equity (18.85%) than 91.79% of its industry peers.
AMPH has a better Return On Invested Capital (11.31%) than 89.74% of its industry peers.
AMPH had an Average Return On Invested Capital over the past 3 years of 12.92%. This is in line with the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.85% | ||
| ROIC | 11.31% |
ROA(3y)10.51%
ROA(5y)8.2%
ROE(3y)20.19%
ROE(5y)14.97%
ROIC(3y)12.92%
ROIC(5y)10.14%
1.3 Margins
The Profit Margin of AMPH (19.38%) is better than 92.82% of its industry peers.
In the last couple of years the Profit Margin of AMPH has grown nicely.
AMPH has a better Operating Margin (26.65%) than 92.31% of its industry peers.
In the last couple of years the Operating Margin of AMPH has grown nicely.
With a decent Gross Margin value of 50.50%, AMPH is doing good in the industry, outperforming 64.62% of the companies in the same industry.
AMPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.65% | ||
| PM (TTM) | 19.38% | ||
| GM | 50.5% |
OM growth 3Y20.68%
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y7.52%
GM growth 3Y3.84%
GM growth 5Y4.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AMPH is still creating some value.
The number of shares outstanding for AMPH has been reduced compared to 1 year ago.
AMPH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMPH has an improved debt to assets ratio.
2.2 Solvency
AMPH has an Altman-Z score of 2.36. This is not the best score and indicates that AMPH is in the grey zone with still only limited risk for bankruptcy at the moment.
AMPH's Altman-Z score of 2.36 is fine compared to the rest of the industry. AMPH outperforms 69.74% of its industry peers.
AMPH has a debt to FCF ratio of 4.02. This is a neutral value as AMPH would need 4.02 years to pay back of all of its debts.
AMPH has a Debt to FCF ratio of 4.02. This is amongst the best in the industry. AMPH outperforms 87.18% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that AMPH is somewhat dependend on debt financing.
The Debt to Equity ratio of AMPH (0.80) is worse than 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.22
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.95 indicates that AMPH has no problem at all paying its short term obligations.
AMPH's Current ratio of 2.95 is in line compared to the rest of the industry. AMPH outperforms 51.79% of its industry peers.
AMPH has a Quick Ratio of 2.02. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
AMPH has a Quick ratio of 2.02. This is comparable to the rest of the industry: AMPH outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The earnings per share for AMPH have decreased by -4.30% in the last year.
AMPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 61.62% yearly.
The Revenue has grown by 8.05% in the past year. This is quite good.
The Revenue has been growing by 17.82% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.3%
EPS 3Y41.58%
EPS 5Y61.62%
EPS Q2Q%-28.85%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y18.69%
Revenue growth 5Y17.82%
Sales Q2Q%-0.76%
3.2 Future
The Earnings Per Share is expected to decrease by -0.72% on average over the next years.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-16.92%
EPS Next 2Y-2.84%
EPS Next 3Y0.42%
EPS Next 5Y-0.72%
Revenue Next Year-1.48%
Revenue Next 2Y1.8%
Revenue Next 3Y2.18%
Revenue Next 5Y4.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.08, the valuation of AMPH can be described as very cheap.
Based on the Price/Earnings ratio, AMPH is valued cheaper than 96.41% of the companies in the same industry.
AMPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
AMPH is valuated cheaply with a Price/Forward Earnings ratio of 5.94.
Based on the Price/Forward Earnings ratio, AMPH is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (21.76), we can say AMPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMPH is valued cheaper than 96.41% of the companies in the same industry.
94.87% of the companies in the same industry are more expensive than AMPH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 5.37 |
4.3 Compensation for Growth
The excellent profitability rating of AMPH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-2.84%
EPS Next 3Y0.42%
5. Dividend
5.1 Amount
AMPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.66
-0.55 (-2.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners72.67%
Inst Owner Change0%
Ins Owners8.72%
Ins Owner Change6.63%
Market Cap1.02B
Analysts76.67
Price Target33.66 (55.4%)
Short Float %11.27%
Short Ratio7.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-4.55%
Max EPS beat(2)5.65%
EPS beat(4)2
Avg EPS beat(4)3.88%
Min EPS beat(4)-4.74%
Max EPS beat(4)19.17%
EPS beat(8)5
Avg EPS beat(8)11.41%
EPS beat(12)8
Avg EPS beat(12)16.64%
EPS beat(16)11
Avg EPS beat(16)20.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-2.43%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)4.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-6.38%
PT rev (3m)-9.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.08 | ||
| Fwd PE | 5.94 | ||
| P/S | 1.4 | ||
| P/FCF | 6.8 | ||
| P/OCF | 5.29 | ||
| P/B | 1.36 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 5.37 |
EPS(TTM)3.56
EY16.44%
EPS(NY)3.64
Fwd EY16.82%
FCF(TTM)3.19
FCFY14.71%
OCF(TTM)4.1
OCFY18.92%
SpS15.5
BVpS15.94
TBVpS3.54
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.85% | ||
| ROCE | 13.64% | ||
| ROIC | 11.31% | ||
| ROICexc | 13.56% | ||
| ROICexgc | 26.64% | ||
| OM | 26.65% | ||
| PM (TTM) | 19.38% | ||
| GM | 50.5% | ||
| FCFM | 20.56% |
ROA(3y)10.51%
ROA(5y)8.2%
ROE(3y)20.19%
ROE(5y)14.97%
ROIC(3y)12.92%
ROIC(5y)10.14%
ROICexc(3y)16.46%
ROICexc(5y)13%
ROICexgc(3y)29.66%
ROICexgc(5y)21.24%
ROCE(3y)15.59%
ROCE(5y)12.24%
ROICexcg growth 3Y24.9%
ROICexcg growth 5YN/A
ROICexc growth 3Y2.33%
ROICexc growth 5YN/A
OM growth 3Y20.68%
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y7.52%
GM growth 3Y3.84%
GM growth 5Y4.54%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 73.47% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 76.31% | ||
| Profit Quality | 106.07% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 2.36 |
F-Score7
WACC9.25%
ROIC/WACC1.22
Cap/Depr(3y)86.1%
Cap/Depr(5y)106.5%
Cap/Sales(3y)5.45%
Cap/Sales(5y)6.46%
Profit Quality(3y)95%
Profit Quality(5y)414.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.3%
EPS 3Y41.58%
EPS 5Y61.62%
EPS Q2Q%-28.85%
EPS Next Y-16.92%
EPS Next 2Y-2.84%
EPS Next 3Y0.42%
EPS Next 5Y-0.72%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y18.69%
Revenue growth 5Y17.82%
Sales Q2Q%-0.76%
Revenue Next Year-1.48%
Revenue Next 2Y1.8%
Revenue Next 3Y2.18%
Revenue Next 5Y4.44%
EBIT growth 1Y-7.98%
EBIT growth 3Y43.24%
EBIT growth 5YN/A
EBIT Next Year-5.73%
EBIT Next 3Y3.45%
EBIT Next 5Y5.95%
FCF growth 1Y192.27%
FCF growth 3Y34.69%
FCF growth 5Y286.43%
OCF growth 1Y145.14%
OCF growth 3Y29.62%
OCF growth 5Y38.57%