AMPHASTAR PHARMACEUTICALS INC (NASDAQ:AMPH) – An Undervalued Stock Worth Considering

AMPH ASTAR PHARMACEUTICALS INC (NASDAQ:AMPH) was identified by our Decent Value stock screener as a potential opportunity for value investors. The company shows strong profitability and reasonable financial health while trading at an attractive valuation. Below, we examine why AMPH stands out based on its fundamentals.

Valuation

AMPH appears undervalued compared to industry peers and the broader market:

• P/E Ratio: At 7.32, it is significantly lower than the industry average of 22.01 and the S&P 500’s 26.55.
• Forward P/E: 7.27, suggesting continued cheap valuation relative to future earnings.
• Enterprise Value/EBITDA: Ranks better than 94% of pharmaceutical peers, reinforcing its discounted price.

Profitability

The company excels in profitability metrics:

• Return on Assets (ROA): 8.71%, outperforming 91.79% of industry competitors.
• Return on Equity (ROE): 18.85%, placing it in the top tier of its sector.
• Profit Margin: 19.38%, well above most peers, indicating efficient operations.

Financial Health

While not flawless, AMPH maintains a stable financial position:

• Current Ratio: 2.95, indicating strong short-term liquidity.
• Quick Ratio: 2.02, further confirming its ability to meet obligations.
• Debt Levels: A manageable debt-to-equity ratio of 0.80, though slightly higher than some competitors.

Growth

Growth prospects are mixed but still reasonable:

• Historical Revenue Growth: 17.82% average annual growth over recent years.
• Future Revenue Growth: Expected to grow at 4.44% annually, though EPS may see a slight decline.

Our Decent Value screener lists more stocks with similar characteristics and is updated regularly.
For a deeper dive, review the full fundamental report on AMPH.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.