Amphastar Pharmaceuticals, Inc. (AMPH) stock analysis

P/E below its 5-year median

Amphastar Pharmaceuticals's P/E of 13.3 is below its own 5-year median of 15.8.

P/E below the industry

Amphastar Pharmaceuticals's P/E of 13.3 is below the Drugs median of 25.0.

EV/EBITDA above its 5-year median

Amphastar Pharmaceuticals's EV/EBITDA of 11.7 is above its 5-year median of 11.5.

P/B below the industry

Amphastar Pharmaceuticals's price-to-book of 1.53 is below the Drugs median of 2.09.

Trading below fair value

The share price of $29.37 is below our fair value estimate of $42.05.

Margin of safety over 20%

The price is 30.2% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.0% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 5.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -11.3% over the last twelve months, against a 5-year average of 134% a year.

Growing slower than the industry

Revenue grew 3.1% over the last twelve months; the Drugs median is 7.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 46.8% over the last twelve months, against 49.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Amphastar Pharmaceuticals's return on equity of 12.4% is above the Drugs median of -57.0%.

Earnings grew over 5 years

Net income grew 134% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 13.3% over the last twelve months, against a 5-year average of 17.9%.

Net margin above the industry

Amphastar Pharmaceuticals's net margin of 13.3% is above the Drugs median of -53.5%.

High debt

Debt is 75.3% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 11.5% five years ago to 75.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.6% of total debt.

Interest well covered

Operating income covers interest expense 5.3 times.

Short-term assets cover short-term debts

Current assets are 3.32 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.44; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Amphastar Pharmaceuticals has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.