AMPHASTAR PHARMACEUTICALS IN (AMPH) Stock Fundamental Analysis
NASDAQ:AMPH - Nasdaq - US03209R1032 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AMPH. AMPH was compared to 195 industry peers in the Pharmaceuticals industry. While AMPH has a great profitability rating, there are some minor concerns on its financial health. AMPH may be a bit undervalued, certainly considering the very reasonable score on growth This makes AMPH very considerable 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.
AMPH had positive earnings in each of the past 5 years.
In the past 5 years AMPH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AMPH (8.71%) is better than 91.79% of its industry peers.
AMPH has a better Return On Equity (18.85%) than 91.79% of its industry peers.
AMPH has a Return On Invested Capital of 11.31%. This is amongst the best in the industry. AMPH outperforms 89.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMPH is in line with the industry average of 14.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.85% | ||
| ROIC | 11.31% |
ROA(3y)10.51%
ROA(5y)8.2%
ROE(3y)20.19%
ROE(5y)14.97%
ROIC(3y)12.92%
ROIC(5y)10.14%
1.3 Margins
AMPH's Profit Margin of 19.38% is amongst the best of the industry. AMPH outperforms 92.82% of its industry peers.
In the last couple of years the Profit Margin of AMPH has grown nicely.
AMPH has a Operating Margin of 26.65%. This is amongst the best in the industry. AMPH outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of AMPH has grown nicely.
The Gross Margin of AMPH (50.50%) is better than 64.10% of its industry peers.
In the last couple of years the Gross Margin of AMPH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.65% | ||
| PM (TTM) | 19.38% | ||
| GM | 50.5% |
OM growth 3Y20.68%
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y7.52%
GM growth 3Y3.84%
GM growth 5Y4.54%
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 has been reduced compared to 1 year ago.
Compared to 5 years ago, AMPH has more shares outstanding
The debt/assets ratio for AMPH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.50 indicates that AMPH is not a great score, but indicates only limited risk for bankruptcy at the moment.
AMPH has a Altman-Z score of 2.50. This is in the better half of the industry: AMPH outperforms 71.79% of its industry peers.
AMPH has a debt to FCF ratio of 4.02. This is a neutral value as AMPH would need 4.02 years to pay back of all of its debts.
AMPH's Debt to FCF ratio of 4.02 is amongst the best of the industry. AMPH outperforms 86.15% of its industry peers.
AMPH has a Debt/Equity ratio of 0.80. This is a neutral value indicating AMPH is somewhat dependend on debt financing.
The Debt to Equity ratio of AMPH (0.80) is worse than 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.19
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.95 indicates that AMPH has no problem at all paying its short term obligations.
AMPH's Current ratio of 2.95 is in line compared to the rest of the industry. AMPH outperforms 51.79% of its industry peers.
AMPH has a Quick Ratio of 2.02. This indicates that AMPH is financially healthy and has no problem in meeting its short term obligations.
AMPH has a Quick ratio (2.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
AMPH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.30%.
The Earnings Per Share has been growing by 61.62% on average over the past years. This is a very strong growth
AMPH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.05%.
Measured over the past years, AMPH shows a quite strong growth in Revenue. The Revenue has been growing by 17.82% on average per year.
EPS 1Y (TTM)-4.3%
EPS 3Y41.58%
EPS 5Y61.62%
EPS Q2Q%-28.85%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y18.69%
Revenue growth 5Y17.82%
Sales Q2Q%-0.76%
3.2 Future
The Earnings Per Share is expected to decrease by -0.72% on average over the next years.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-16.67%
EPS Next 2Y-3.67%
EPS Next 3Y-0.67%
EPS Next 5Y-0.72%
Revenue Next Year-1.48%
Revenue Next 2Y1.8%
Revenue Next 3Y2.18%
Revenue Next 5Y4.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 7.43, which indicates a rather cheap valuation of AMPH.
Compared to the rest of the industry, the Price/Earnings ratio of AMPH indicates a rather cheap valuation: AMPH is cheaper than 94.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AMPH to the average of the S&P500 Index (26.60), we can say AMPH is valued rather cheaply.
The Price/Forward Earnings ratio is 7.38, which indicates a rather cheap valuation of AMPH.
AMPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMPH is cheaper than 91.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, AMPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
94.87% of the companies in the same industry are more expensive than AMPH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AMPH is valued cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.3 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
AMPH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-3.67%
EPS Next 3Y-0.67%
5. Dividend
5.1 Amount
AMPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.44
+0.39 (+1.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-5.17%
Ins Owners8.05%
Ins Owner Change3.58%
Market Cap1.25B
Analysts76.67
Price Target33.66 (27.31%)
Short Float %11.06%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-4.55%
Max EPS beat(2)5.65%
EPS beat(4)2
Avg EPS beat(4)3.88%
Min EPS beat(4)-4.74%
Max EPS beat(4)19.17%
EPS beat(8)5
Avg EPS beat(8)11.41%
EPS beat(12)8
Avg EPS beat(12)16.64%
EPS beat(16)11
Avg EPS beat(16)20.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-2.43%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-3.71%
Max Revenue beat(4)4.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)-6.38%
PT rev (3m)-25.42%
EPS NQ rev (1m)4.86%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)0.64%
EPS NY rev (3m)-14.04%
Revenue NQ rev (1m)-2.43%
Revenue NQ rev (3m)-5.33%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 7.38 | ||
| P/S | 1.71 | ||
| P/FCF | 8.3 | ||
| P/OCF | 6.45 | ||
| P/B | 1.66 | ||
| P/tB | 7.47 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)3.56
EY13.46%
EPS(NY)3.58
Fwd EY13.55%
FCF(TTM)3.19
FCFY12.05%
OCF(TTM)4.1
OCFY15.5%
SpS15.5
BVpS15.94
TBVpS3.54
PEG (NY)N/A
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 18.85% | ||
| ROCE | 13.64% | ||
| ROIC | 11.31% | ||
| ROICexc | 13.56% | ||
| ROICexgc | 26.64% | ||
| OM | 26.65% | ||
| PM (TTM) | 19.38% | ||
| GM | 50.5% | ||
| FCFM | 20.56% |
ROA(3y)10.51%
ROA(5y)8.2%
ROE(3y)20.19%
ROE(5y)14.97%
ROIC(3y)12.92%
ROIC(5y)10.14%
ROICexc(3y)16.46%
ROICexc(5y)13%
ROICexgc(3y)29.66%
ROICexgc(5y)21.24%
ROCE(3y)15.59%
ROCE(5y)12.24%
ROICexcg growth 3Y24.9%
ROICexcg growth 5YN/A
ROICexc growth 3Y2.33%
ROICexc growth 5YN/A
OM growth 3Y20.68%
OM growth 5YN/A
PM growth 3Y15.39%
PM growth 5Y7.52%
GM growth 3Y3.84%
GM growth 5Y4.54%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 73.47% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 76.31% | ||
| Profit Quality | 106.07% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 2.5 |
F-Score7
WACC9.52%
ROIC/WACC1.19
Cap/Depr(3y)86.1%
Cap/Depr(5y)106.5%
Cap/Sales(3y)5.45%
Cap/Sales(5y)6.46%
Profit Quality(3y)95%
Profit Quality(5y)414.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.3%
EPS 3Y41.58%
EPS 5Y61.62%
EPS Q2Q%-28.85%
EPS Next Y-16.67%
EPS Next 2Y-3.67%
EPS Next 3Y-0.67%
EPS Next 5Y-0.72%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y18.69%
Revenue growth 5Y17.82%
Sales Q2Q%-0.76%
Revenue Next Year-1.48%
Revenue Next 2Y1.8%
Revenue Next 3Y2.18%
Revenue Next 5Y4.44%
EBIT growth 1Y-7.98%
EBIT growth 3Y43.24%
EBIT growth 5YN/A
EBIT Next Year-5.73%
EBIT Next 3Y3.45%
EBIT Next 5Y5.95%
FCF growth 1Y192.27%
FCF growth 3Y34.69%
FCF growth 5Y286.43%
OCF growth 1Y145.14%
OCF growth 3Y29.62%
OCF growth 5Y38.57%