AMPH ASTAR PHARMACEUTICALS INC (NASDAQ:AMPH) was identified as a decent value stock through our screening process. The company shows strong profitability and an attractive valuation, while maintaining reasonable financial health and growth prospects. Below, we examine why AMPH may appeal to value investors.
Valuation
AMPH stands out with a Valuation Rating of 8/10, indicating the stock is priced attractively relative to its fundamentals. Key highlights include:
- A P/E ratio of 6.52, well below both the industry average (20.04) and the S&P 500 (27.45).
- A forward P/E of 6.37, suggesting continued undervaluation.
- An Enterprise Value to EBITDA ratio that ranks better than 94.87% of its pharmaceutical peers.
These metrics suggest the market may be pricing AMPH conservatively despite its solid financial performance.
Profitability
The company earns a Profitability Rating of 8/10, supported by:
- A Return on Assets (ROA) of 8.71%, outperforming 92.31% of industry competitors.
- A Return on Equity (ROE) of 18.85%, ranking above 91.79% of peers.
- Strong operating margins (26.65%) and profit margins (19.38%), both well ahead of industry averages.
These figures indicate efficient operations and the ability to generate consistent earnings.
Financial Health
With a Health Rating of 6/10, AMPH maintains a stable financial position:
- A Current Ratio of 2.95 and Quick Ratio of 2.02, signaling good short-term liquidity.
- A Debt-to-Equity ratio of 0.80, manageable but slightly higher than some peers.
- A Debt-to-Free Cash Flow ratio of 4.02, better than 87.18% of competitors.
While leverage is present, the company’s cash flow generation helps mitigate risks.
Growth
AMPH’s Growth Rating of 4/10 reflects mixed trends:
- Revenue growth of 17.82% annually over the past few years.
- EPS growth of 61.62% over the same period, though recent declines (-4.30% YoY) warrant monitoring.
- Analysts expect modest future revenue growth (4.44%), but EPS may dip slightly (-0.72%).
While near-term growth appears slower, the company’s historical performance suggests resilience.
For a deeper analysis, review the full fundamental report for AMPH.
Our Decent Value screener lists more stocks with strong valuations and solid fundamentals, updated daily.
Disclaimer
This is not investment advice. The observations here are based on available data at the time of writing. Always conduct your own research before making investment decisions.
