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NASDAQ:AMPH is not too expensive for the growth it is showing.

By Mill Chart

Last update: Jan 17, 2024

Uncover the potential of AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH), a growth stock that our stock screener found to be reasonably priced. NASDAQ:AMPH is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

What does the Growth looks like for NASDAQ: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. NASDAQ:AMPH scores a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 89.76% over the past year.
  • AMPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.72% yearly.
  • The Revenue has grown by 24.00% 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 15.75% on average per year.
  • AMPH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.51% yearly.
  • Based on estimates for the next years, AMPH will show a quite strong growth in Revenue. The Revenue will grow by 19.72% on average per year.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NASDAQ:AMPH's Valuation

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 8 out of 10:

  • 85.15% of the companies in the same industry are more expensive than AMPH, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.68. AMPH is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio, AMPH is valued cheaper than 84.65% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AMPH to the average of the S&P500 Index (20.65), we can say AMPH is valued slightly cheaper.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 82.18% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, AMPH is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
  • The 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.
  • AMPH's earnings are expected to grow with 28.41% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:AMPH

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 5 out of 10:

  • AMPH has an Altman-Z score of 3.02. This indicates that AMPH is financially healthy and has little risk of bankruptcy at the moment.
  • AMPH has a Altman-Z score of 3.02. This is in the better half of the industry: AMPH outperforms 76.24% of its industry peers.
  • The Debt to FCF ratio of AMPH (4.57) is better than 86.14% of its industry peers.
  • AMPH has a Current Ratio of 2.10. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.

Evaluating Profitability: NASDAQ:AMPH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AMPH scores a 8 out of 10:

  • Looking at the Return On Assets, with a value of 8.75%, AMPH belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
  • AMPH has a Return On Equity of 22.72%. This is amongst the best in the industry. AMPH outperforms 93.07% of its industry peers.
  • AMPH has a Return On Invested Capital of 10.91%. This is amongst the best in the industry. AMPH outperforms 90.10% of its industry peers.
  • The last Return On Invested Capital (10.91%) for AMPH is above the 3 year average (8.03%), which is a sign of increasing profitability.
  • The Profit Margin of AMPH (22.48%) is better than 95.54% of its industry peers.
  • In the last couple of years the Profit Margin of AMPH has grown nicely.
  • AMPH's Operating Margin of 30.07% is amongst the best of the industry. AMPH outperforms 95.54% of its industry peers.
  • With a decent Gross Margin value of 54.23%, AMPH is doing good in the industry, outperforming 65.35% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AMPH has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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AMPHASTAR PHARMACEUTICALS IN

NASDAQ:AMPH (5/24/2024, 7:13:49 PM)

After market: 43 -0.26 (-0.6%)

43.26

-0.09 (-0.21%)

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