News Image

Despite its impressive fundamentals, NASDAQ:AMPH remains undervalued.

By Mill Chart

Last update: Jan 23, 2024

Uncover the potential of AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) as our stock screener's choice for an undervalued stock. NASDAQ:AMPH maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:AMPH was assigned a score of 8 for valuation:

  • Based on the Price/Earnings ratio, AMPH is valued cheaper than 85.22% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.97. AMPH is valued slightly cheaper when compared to this.
  • AMPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMPH is cheaper than 84.73% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.90, AMPH is valued a bit cheaper.
  • AMPH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMPH is cheaper than 82.27% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 83.74% of the companies listed in the same industry.
  • 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 28.41% in the coming years.

Exploring NASDAQ:AMPH's Profitability

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:

  • The Return On Assets of AMPH (8.75%) is better than 92.12% of its industry peers.
  • The Return On Equity of AMPH (22.72%) is better than 93.60% of its industry peers.
  • With an excellent Return On Invested Capital value of 10.91%, AMPH belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
  • 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.
  • AMPH's Profit Margin of 22.48% is amongst the best of the industry. AMPH outperforms 95.57% of its industry peers.
  • AMPH's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AMPH (30.07%) is better than 95.57% of its industry peers.
  • AMPH has a Gross Margin of 54.23%. This is in the better half of the industry: AMPH outperforms 65.52% of its industry peers.
  • In the last couple of years the Gross Margin of AMPH has grown nicely.

Unpacking NASDAQ:AMPH's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:AMPH, the assigned 5 reflects its health status:

  • An Altman-Z score of 3.03 indicates that AMPH is not in any danger for bankruptcy at the moment.
  • AMPH has a Altman-Z score of 3.03. This is in the better half of the industry: AMPH outperforms 76.85% of its industry peers.
  • With an excellent Debt to FCF ratio value of 4.57, AMPH belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
  • 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.

Unpacking NASDAQ:AMPH's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:AMPH, the assigned 8 reflects its growth potential:

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

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.

Back

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%)

AMPH News

News Image11 days ago - InvestorPlacePatent Peril: 3 Stocks at Risk From the FTC’s Drug Crusade

The FTC is putting these three drug stocks at risk by trying to strip their therapies of protection from generics.

News Image12 days ago - ChartmillExploring NASDAQ:AMPH's growth characteristics.

AMPHASTAR PHARMACEUTICALS IN (NASDAQ:AMPH) showing high EPS and FCF growth while beating expectations

News Image18 days ago - InvestorPlaceAMPH Stock Earnings: Amphastar Pharma Beats EPS, Misses Revenue for Q1 2024

AMPH stock results show that Amphastar Pharma beat analyst estimates for earnings per share but missed on revenue for the first quarter of 2024.

News Image18 days ago - BusinessInsiderAMPH Stock Earnings: Amphastar Pharma Beats EPS, Misses Revenue for Q1 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amphastar Pharma (NASDAQ:AMPH) just reported results for the first quarter of 2...

News Imagea month ago - Market News VideoOversold Conditions For Amphastar Pharmaceuticals (AMPH)
News Imagea month ago - Market News VideoCommit To Buy Amphastar Pharmaceuticals At $22.50, Earn 18.5% Annualized Using Options
News Image3 months ago - Market News VideoAmphastar Pharmaceuticals Becomes Oversold (AMPH)
News Image3 months ago - Market News VideoAmphastar Pharmaceuticals (AMPH) Shares Cross Below 200 DMA
News Image3 months ago - Seeking AlphaAmphastar Pharmaceuticals Non-GAAP EPS of $0.88 misses by $0.03, revenue of $178.1M beats by $4.77M (NASDAQ:AMPH)

Amphastar Pharmaceuticals reports Q4 financial results with a Non-GAAP EPS of $0.88, missing estimates by $0.03, while revenue of $178.1M beats expectations...

News Image3 months ago - Investor's Business DailyCRISPR Therapeutics Stock Shows Rising Relative Strength, Hits 90+

CRISPR Therapeutics shows improving price performance, earning an upgrade to its IBD Relative Strength Rating.

News Image4 months ago - Market News VideoAMPH Crosses Below Key Moving Average Level
News Image4 months ago - InvestorPlace3 Once-in-a-Lifetime Biotech Stocks With Unprecedented Surge Potential

As the new business cycle gets started, here are some biotech stocks with potential that investors should pay attention to.

AMPH Links
Follow us for more