25.92 USD
-0.22 (-0.86%)
25.92 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AMPH. AMPH was compared to 190 industry peers in the Pharmaceuticals industry. AMPH has an excellent profitability rating, but there are some minor concerns on its financial health. AMPH may be a bit undervalued, certainly considering the very reasonable score on growth This makes AMPH very considerable for value investing!
1. Profitability
1.1 Basic Checks
- AMPH had positive earnings in the past year.
- AMPH had a positive operating cash flow in the past year.
- Each year in the past 5 years AMPH has been profitable.
- Each year in the past 5 years AMPH had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.70%, AMPH belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.37%, AMPH belongs to the top of the industry, outperforming 88.48% of the companies in the same industry.
- AMPH has a Return On Invested Capital of 8.51%. This is amongst the best in the industry. AMPH outperforms 86.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AMPH is in line with the industry average of 12.83%.
- The last Return On Invested Capital (8.51%) for AMPH is well below the 3 year average (12.92%), which needs to be investigated, but indicates that AMPH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 14.37% | ||
| ROIC | 8.51% |
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
- Looking at the Profit Margin, with a value of 15.43%, AMPH belongs to the top of the industry, outperforming 87.43% of the companies in the same industry.
- AMPH's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 20.73%, AMPH belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
- AMPH's Operating Margin has improved in the last couple of years.
- The Gross Margin of AMPH (49.36%) is better than 64.40% of its industry peers.
- AMPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.73% | ||
| PM (TTM) | 15.43% | ||
| GM | 49.36% |
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.
- AMPH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AMPH has more shares outstanding
- The debt/assets ratio for AMPH has been reduced compared to a year ago.
2.2 Solvency
- AMPH has an Altman-Z score of 2.39. 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 has a better Altman-Z score (2.39) than 62.83% of its industry peers.
- The Debt to FCF ratio of AMPH is 5.49, which is a neutral value as it means it would take AMPH, 5.49 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.49, AMPH belongs to the top of the industry, outperforming 82.20% of the companies in the same industry.
- A Debt/Equity ratio of 0.78 indicates that AMPH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.78, AMPH is not doing good in the industry: 70.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.95
WACC8.92%
2.3 Liquidity
- AMPH has a Current Ratio of 3.12. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
- AMPH has a Current ratio of 3.12. This is comparable to the rest of the industry: AMPH outperforms 53.40% of its industry peers.
- AMPH has a Quick Ratio of 2.21. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
- AMPH has a Quick ratio (2.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
- The earnings per share for AMPH have decreased by -9.95% 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 decreased by -0.03% in the past year.
- AMPH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.82% yearly.
EPS 1Y (TTM)-9.95%
EPS 3Y41.58%
EPS 5Y61.62%
EPS Q2Q%-3.12%
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y18.69%
Revenue growth 5Y17.82%
Sales Q2Q%0.33%
3.2 Future
- The Earnings Per Share is expected to grow by 0.14% on average over the next years.
- Based on estimates for the next years, AMPH will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y-8.73%
EPS Next 2Y-1.9%
EPS Next 3Y0.87%
EPS Next 5Y0.14%
Revenue Next Year-0.8%
Revenue Next 2Y1.99%
Revenue Next 3Y2.7%
Revenue Next 5Y4.14%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.53, the valuation of AMPH can be described as very cheap.
- Based on the Price/Earnings ratio, AMPH is valued cheaper than 93.19% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AMPH is valued rather cheaply when compared to this.
- AMPH is valuated cheaply with a Price/Forward Earnings ratio of 6.98.
- Based on the Price/Forward Earnings ratio, AMPH is valued cheaper than 92.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (25.98), we can say AMPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMPH is valued cheaply inside the industry as 91.62% of the companies are valued more expensively.
- 90.58% 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 | 10.73 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
- The excellent profitability rating of AMPH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-1.9%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
- AMPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMPHASTAR PHARMACEUTICALS IN / AMPH FAQ
What is the fundamental rating for AMPH stock?
ChartMill assigns a fundamental rating of 6 / 10 to AMPH.
What is the valuation status of AMPHASTAR PHARMACEUTICALS IN (AMPH) stock?
ChartMill assigns a valuation rating of 8 / 10 to AMPHASTAR PHARMACEUTICALS IN (AMPH). This can be considered as Undervalued.
Can you provide the profitability details for AMPHASTAR PHARMACEUTICALS IN?
AMPHASTAR PHARMACEUTICALS IN (AMPH) has a profitability rating of 9 / 10.
What is the valuation of AMPHASTAR PHARMACEUTICALS IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMPHASTAR PHARMACEUTICALS IN (AMPH) is 7.53 and the Price/Book (PB) ratio is 1.53.