One-glance verdict
Undervalued
$60.80 our estimate vs market $26.13
Wall Street consensus: $22.50 (-63.0% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
Amphastar Pharmaceuticals, Inc.
AMPH · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$26.13
52-week range
$16.65 - $29.52
Market cap
$1.11B
Balance sheet
Watch
5.51x Adequate
Net debt $398.20M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.4% last year.
- Reward Returns 10.3% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 9/10 years.
What this company does
Amphastar Pharmaceuticals, Inc.
Amphastar Pharmaceuticals is a drug company that creates and sells medicines for urgent medical needs, such as a nasal spray for severe low blood sugar and an inhaler for asthma attacks. It makes most of its money selling these often complex products, including cheaper generic versions (copies of brand-name drugs with expired patents), to hospitals and pharmacies. This focus on medically necessary drugs that are difficult to manufacture can be important because it can lead to more consistent customer demand and less competition.
How the company got here
Founded in 1996 by Dr. Jack Yongfeng Zhang and Dr. Mary Hwamei Luo, Amphastar started by focusing on developing and making generic injectable drugs that are complex and technically difficult to produce. A key moment was its 2014 initial public offering (IPO), which is when a private company first sells shares of stock to the public, to raise money for research and expansion. Over the years, it has grown by acquiring other companies and products, such as the emergency hypoglycemia treatment BAQSIMI from Eli Lilly in 2023 for over $1 billion. This and other acquisitions have helped the company expand its manufacturing abilities and product lines. Today, Amphastar has become a global company known for its specialty drugs, particularly those used in hospitals and emergency situations.
What it actually does
Amphastar is a biopharmaceutical company that creates, manufactures, and sells a variety of medicines that are typically injected or inhaled. Many of its products are used in urgent medical situations, like severe allergic reactions, opioid overdoses, and very low blood sugar in people with diabetes. You would most likely encounter their products in a hospital or an ambulance rather than on a pharmacy shelf, although they do make some products available directly to consumers, like Primatene MIST for asthma. The company focuses on products that are hard to make, which gives them an edge over competitors. They also manufacture and sell the core components, known as active pharmaceutical ingredients (APIs), for some medicines like insulin.
Pharmaceutical Products
This is the company's only reporting segment, meaning it's how they group all their business for financial reporting. It includes a wide range of products, from branded drugs to generics (less expensive copies of brand-name drugs). Their biggest sellers include BAQSIMI, a nasal spray to treat severe low blood sugar; Primatene MIST, an over-the-counter inhaler for mild asthma; and various emergency medications like epinephrine for allergic reactions and naloxone for opioid overdoses. This single segment is responsible for all of the company's revenue (the total money earned from sales). The customers are typically hospitals, clinics, and wholesalers who distribute the drugs.
What management is betting on now
Amphastar is making a big push to shift from being mostly a generics company to one that sells more unique, branded products, which are typically more profitable. A major part of this strategy was buying BAQSIMI, which expanded their presence in diabetes care and internationally. The company is also investing heavily in its U.S.-based manufacturing, with plans to quadruple its production capacity in California to ensure a reliable supply chain (the system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer). They are also developing a pipeline (a group of products in development) of new products, including biosimilars (a biologic medical product highly similar to another already approved biological medicine), to fuel future growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$46.17M
FY2024 Q4
$16.61M
FY2025 Q1
$24.38M
FY2025 Q2
$25.03M
FY2025 Q3
$47.23M
FY2025 Q4
$24.59M
FY2026 Q1
$38.33M
FY2026 Q2
$42.73M
Revenue
$183.90M
Net income
$30.35M
Diluted EPS
0.67
Operating cash flow
$51.32M
Free cash flow
$42.73M
Fetching…
Sources
Revenue
$171.17M
Net income
$6.42M
Diluted EPS
0.14
Operating cash flow
$47.84M
Free cash flow
$38.33M
Fetching…
Sources
Revenue
$183.10M
Net income
$24.43M
Diluted EPS
0.51
Operating cash flow
$32.86M
Free cash flow
$24.59M
Fetching…
Sources
Revenue
$191.84M
Net income
$17.35M
Diluted EPS
0.37
Operating cash flow
$52.58M
Free cash flow
$47.23M
Fetching…
Sources
Revenue
$174.41M
Net income
$31.03M
Diluted EPS
0.64
Operating cash flow
$35.59M
Free cash flow
$25.03M
Fetching…
Sources
Revenue
$170.53M
Net income
$25.29M
Diluted EPS
0.51
Operating cash flow
$35.08M
Free cash flow
$24.38M
Fetching…
Sources
Revenue
$186.52M
Net income
$37.96M
Diluted EPS
0.74
Operating cash flow
$29.02M
Free cash flow
$16.61M
Fetching…
Sources
Revenue
$191.21M
Net income
$40.43M
Diluted EPS
0.78
Operating cash flow
$59.96M
Free cash flow
$46.17M
Fetching…
Sources
Is it cheap or expensive?
Fair value $60.80 vs current price $26.13
Wall Street consensus is the average analyst price target: $22.50 (-63.0% lower than our fair-value estimate).
Our most-likely fair value is $60.80 a share — about 132.7% above today's price of $26.13, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $398.2M. Interest coverage 5.5x.
Net debt
$398.20M
Interest coverage
5.51x
Amphastar Pharmaceuticals, Inc.'s profit covers its interest bill about 5.5 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
AMPH
BASELINE
Amphastar Pharmaceuticals, Inc.
Total debt $688.32M Interest coverage 5.51x This is the baseline the peer rows are being compared against.
Total debt $626.03M Interest coverage 4.05x -27% vs AMPH Carries about 1.4x less debt cushion than AMPH.
Total debt $412.12M Interest coverage 1.31x -76% vs AMPH Carries about 4.2x less debt cushion than AMPH.
Total debt $1.22B Interest coverage 2.17x -61% vs AMPH Carries about 2.5x less debt cushion than AMPH.
Total debt $148.35M Interest coverage -0.26x -100% vs AMPH This peer has almost no interest-payment cushion compared with AMPH.
What you should know
The case for and against AMPH
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.4% last year.
-
Returns 10.3% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.46x
Forward P/E
8.21x
P/B
1.45x
P/S
1.52x
EV/EBITDA
7.76x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
47.7%
Operating margin
21.6%
Net margin
10.8%
ROE
10.3%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.90x
Current ratio
2.40x
Quick ratio
1.66x
Total debt
$688.32M
Total cash
$290.12M
Growth
How the business has been compounding
Revenue TTM
$730.02M
Revenue 5Y CAGR
13.2%
EPS TTM
1.69
EPS 5Y CAGR
5.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$184.61M
Free CF TTM
$121.23M
FCF margin
16.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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