Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001297184
Market Cap 1.27 Bn
P/B 1.63
P/E 11.35
P/S 1.75
ROIC (Qtr) 8.50
Div Yield % 0.00
Rev 1y % (Qtr) 0.33
Total Debt (Qtr) 656.77 Mn
Debt/Equity (Qtr) 0.85

About

Amphastar Pharmaceuticals, Inc., recognized by its ticker symbol AMPH, operates within the bio-pharmaceutical industry. The company's main business activities encompass the development, manufacturing, marketing, and selling of technically challenging generic and proprietary injectable, inhalation, and intranasal products. These activities are primarily centered around the development and commercialization of complex generic and proprietary products, including insulin active pharmaceutical ingredient (API) products. Amphastar's operations span across...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 216.50M provide 24.74x coverage of short-term debt 8.75M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 113.25M exceeds capital expenditure of 39.02M by 2.90x, indicating strong organic growth funding capability.
  • Operating cash flow of 152.28M provides solid 0.74x coverage of current liabilities 205.23M, showing strong operational health.
  • Short-term investments of 62.14M provide solid 11.03x coverage of other current liabilities 5.63M, indicating strong liquidity.
  • Operating cash flow of 152.28M fully covers other non-current liabilities 36.23M by 4.20x, showing strong long-term stability.

Bear case

  • Operating cash flow of 152.28M barely covers its investment activities of (45.44M), with a coverage ratio of -3.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (45.44M) provide weak support for R&D spending of 80.67M, which is -0.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High depreciation of 80.42M relative to operating cash flow of 152.28M, which is 0.53x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating earnings of 160.95M show weak coverage of depreciation charges of 80.42M, with a 2 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 642.45M provide limited buffer against comprehensive income items of (5.27M), which is -121.84x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.04 24.98
EV to Cash from Ops. EV/CFO 11.39 -85.40
EV to Debt EV to Debt 2.64 265.88
EV to EBIT EV/EBIT 10.78 -32.65
EV to EBITDA EV/EBITDA 7.53 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 15.31 -32.62
EV to Market Cap EV to Market Cap 1.37 -10.98
EV to Revenue EV/Rev 2.40 -700.14
Price to Book Value [P/B] P/B 1.63 27.22
Price to Earnings [P/E] P/E 11.35 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 6.37 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2.49 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.55 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -28.81 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -16.91 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -26.66 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -27.09 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -27.38 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -33.44 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.86 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.05 2.10
Current Ratio Curr Ratio (Qtr) 3.12 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.85 -1.11
Interest Cover Ratio Int Coverage (Qtr) 6.37 -38.10
Times Interest Earned Times Interest Earned (Qtr) 6.37 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 33.40 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 22.25 -63,260.88
EBT Margin % EBT Margin % (Qtr) 18.76 -66,726.96
Gross Margin % Gross Margin % (Qtr) 49.40 8,332.72
Net Profit Margin % Net Margin % (Qtr) 15.40 -66,728.37