AMPHASTAR PHARMACEUTICALS IN (AMPH)
US03209R1032 - Common Stock
We assign a fundamental rating of 7 out of 10 to AMPH. AMPH was compared to 194 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. These ratings would make AMPH suitable 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.
In the past 5 years AMPH has always been profitable.
In the past 5 years AMPH always reported a positive cash flow from operatings.
1.2 Ratios
AMPH's Return On Assets of 11.16% is amongst the best of the industry. AMPH outperforms 95.31% of its industry peers.
Looking at the Return On Equity, with a value of 23.34%, AMPH belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.68%, AMPH belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMPH is significantly below the industry average of 42.22%.
The last Return On Invested Capital (13.68%) for AMPH is above the 3 year average (11.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 23.34% | ||
| ROIC | 13.68% |
ROA(3y)10.22%
ROA(5y)7.84%
ROE(3y)17.58%
ROE(5y)13.18%
ROIC(3y)11.94%
ROIC(5y)N/A
1.3 Margins
AMPH has a better Profit Margin (23.35%) than 95.83% of its industry peers.
In the last couple of years the Profit Margin of AMPH has grown nicely.
The Operating Margin of AMPH (32.25%) is better than 95.31% of its industry peers.
In the last couple of years the Operating Margin of AMPH has grown nicely.
Looking at the Gross Margin, with a value of 54.68%, AMPH is in the better half of the industry, outperforming 63.54% of the companies in the same industry.
AMPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.25% | ||
| PM (TTM) | 23.35% | ||
| GM | 54.68% |
OM growth 3Y114.39%
OM growth 5YN/A
PM growth 3Y276.41%
PM growth 5YN/A
GM growth 3Y10.26%
GM growth 5Y8.62%
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 remains at a similar level compared to 1 year ago.
AMPH has more shares outstanding than it did 5 years ago.
AMPH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.37 indicates that AMPH is not in any danger for bankruptcy at the moment.
AMPH's Altman-Z score of 3.37 is fine compared to the rest of the industry. AMPH outperforms 75.00% of its industry peers.
The Debt to FCF ratio of AMPH is 3.30, which is a good value as it means it would take AMPH, 3.30 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.30, AMPH belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that AMPH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, AMPH is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.59
WACC8.6%
2.3 Liquidity
AMPH has a Current Ratio of 3.52. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
AMPH has a Current ratio of 3.52. This is comparable to the rest of the industry: AMPH outperforms 52.60% of its industry peers.
AMPH has a Quick Ratio of 2.63. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AMPH (2.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.63 |
3. Growth
3.1 Past
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.
The Earnings Per Share has been growing by 70.36% on average over the past years. This is a very strong growth
The Revenue has grown by 29.14% in the past year. This is a very strong growth!
Measured over the past years, AMPH shows a quite strong growth in Revenue. The Revenue has been growing by 16.94% on average per year.
EPS 1Y (TTM)21.27%
EPS 3Y72.76%
EPS 5Y70.36%
EPS Q2Q%-16.52%
Revenue 1Y (TTM)29.14%
Revenue growth 3Y22.59%
Revenue growth 5Y16.94%
Sales Q2Q%5.9%
3.2 Future
AMPH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.87% yearly.
AMPH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.16% yearly.
EPS Next Y22.52%
EPS Next 2Y16.19%
EPS Next 3Y15.11%
EPS Next 5Y-4.87%
Revenue Next Year15.4%
Revenue Next 2Y12.8%
Revenue Next 3Y11.48%
Revenue Next 5Y1.16%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AMPH is valuated reasonably with a Price/Earnings ratio of 11.66.
Based on the Price/Earnings ratio, AMPH is valued cheaper than 90.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, AMPH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.00 indicates a reasonable valuation of AMPH.
88.54% of the companies in the same industry are more expensive than AMPH, based on the Price/Forward Earnings ratio.
AMPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 87.50% of the companies listed in the same industry.
88.54% 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 | 12.1 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
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 15.11% in the coming years.
PEG (NY)0.52
PEG (5Y)0.17
EPS Next 2Y16.19%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
No dividends for AMPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMPHASTAR PHARMACEUTICALS IN
NASDAQ:AMPH (11/21/2024, 8:12:10 PM)
After market: 44.55 0 (0%)44.55
+0.46 (+1.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap2.15B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)0.52
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 23.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.25% | ||
| PM (TTM) | 23.35% | ||
| GM | 54.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.27%
EPS 3Y72.76%
EPS 5Y
EPS Q2Q%
EPS Next Y22.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.14%
Revenue growth 3Y22.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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