One-glance verdict
Undervalued
$80.66 our estimate vs market $29.38
Wall Street consensus: $24.50 (-69.6% lower than our fair-value estimate)
64% below our estimate, below the bear case
Fundamentals snapshot
Amphastar Pharmaceuticals, Inc.
AMPH · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$29.38
52-week range
$16.65 - $31.00
Market cap
$1.25B
Balance sheet
Watch
5.51x Adequate
Net debt $461.06M. 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 3.6% last year.
- Reward Returns 12.4% 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 makes and sells a variety of medicines, including emergency treatments for low blood sugar and opioid overdoses, as well as products for asthma and other conditions. Their money mainly comes from selling these important prescription drugs, which means their success depends on how well these medicines perform in the market and how many people need them.
How the company got here
Amphastar Pharmaceuticals was founded in 1996 with a focus on developing and manufacturing complex injectable, inhalation, and intranasal drugs. The company aimed to bring both generic versions of existing medications and its own proprietary treatments to market. A key part of its strategy has been to tackle drugs that are difficult to manufacture, often involving complex processes or specialized delivery methods. This approach has allowed Amphastar to carve out a niche in the competitive pharmaceutical landscape, focusing on products that may have fewer competitors due to these manufacturing hurdles.
What it actually does
Amphastar Pharmaceuticals makes and sells a variety of medications, primarily those that are injected, inhaled, or delivered via a nasal spray. Think of them as creating the liquid or powder that goes into a syringe, an inhaler, or a special nasal device. They offer both generic versions of well-known drugs, which are essentially copies of existing medications that have lost patent protection, and their own unique, branded products. These medicines are used to treat a range of conditions, from emergency situations like severe low blood sugar or opioid overdoses to managing chronic illnesses such as asthma and osteoporosis.
Injectable and Inhalation Products
This is a major part of Amphastar's business, focusing on drugs that are administered through injection or inhaled into the lungs. For example, they produce Enoxaparin, a blood thinner given by injection to prevent blood clots, and Albuterol sulfate inhalation aerosol, used to open airways for people with asthma. They also make emergency medications like Epinephrine injections for severe allergic reactions and Glucagon kits for severe hypoglycemia (dangerously low blood sugar). This segment involves creating the precise formulations and sterile manufacturing processes required for these critical treatments.
Proprietary Products
Amphastar also develops and markets its own unique, branded medications, often with specialized delivery systems. A prime example is BAQSIMI, a dry nasal spray used in emergencies to treat severe hypoglycemia, offering an alternative to injections. Another is Primatene MIST, an over-the-counter inhalation product for mild asthma symptoms. These proprietary products represent innovation and often command higher prices than generic alternatives, contributing significantly to the company's revenue and growth potential.
Active Pharmaceutical Ingredients (APIs)
Beyond finished drug products, Amphastar also manufactures and sells the raw, active ingredients that go into making certain medications. This includes specialized ingredients like Recombinant Human Insulin and porcine insulin API. By producing these key components, Amphastar not only supplies other drug manufacturers but also gains deeper control over its own production processes and costs for some of its finished products. This segment highlights the company's manufacturing expertise extending to the fundamental building blocks of medicines.
What management is betting on now
Amphastar's management is focused on expanding its portfolio of complex generic drugs and advancing its proprietary product pipeline. They are likely investing in research and development to create new medications or improve existing ones, particularly those with challenging manufacturing requirements. The company also seems to be prioritizing international expansion, seeking to bring its products to new markets. By focusing on these areas, Amphastar aims to drive future revenue growth and solidify its position in specialized pharmaceutical niches.
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 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
FY2026 Q3
$33.36M
Revenue
$207.61M
Net income
$37.76M
Diluted EPS
0.87
Operating cash flow
$43.30M
Free cash flow
$33.36M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $80.66 vs current price $29.38
Wall Street consensus is the average analyst price target: $24.50 (-69.6% lower than our fair-value estimate).
Our most-likely fair value is $80.66 a share — about 174.6% above today's price of $29.38, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $461.1M. Interest coverage 5.5x.
Net debt
$461.06M
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 $691.69M Interest coverage 5.51x This is the baseline the peer rows are being compared against.
Total debt $617.36M Interest coverage 4.05x -27% vs AMPH Carries about 1.4x less debt cushion than AMPH.
Total debt $340.28M Interest coverage 1.31x -76% vs AMPH Carries about 4.2x less debt cushion than AMPH.
Total debt $1.21B Interest coverage 2.17x -61% vs AMPH Carries about 2.5x less debt cushion than AMPH.
Total debt $131.73M 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 3.6% last year.
-
Returns 12.4% 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)
13.48x
Forward P/E
8.84x
P/B
1.54x
P/S
1.68x
EV/EBITDA
8.64x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
46.8%
Operating margin
24.5%
Net margin
13.3%
ROE
12.4%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.85x
Current ratio
3.32x
Quick ratio
2.29x
Total debt
$691.69M
Total cash
$230.63M
Growth
How the business has been compounding
Revenue TTM
$745.79M
Revenue 5Y CAGR
13.2%
EPS TTM
2.18
EPS 5Y CAGR
5.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$175.33M
Free CF TTM
$121.23M
FCF margin
16.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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