Amphastar Pharmaceuticals Inc. Common Stock (AMPH)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $81 million in annual free cash flow (8.7% yield on market cap)
• Solid return on equity of 12.9% above cost of capital

Concerns

• Revenue declining at 1.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Amphastar Pharmaceuticals Inc. Common Stock is a micro-cap healthcare company valued at $936 million. The business generates $720 million in annual revenue with a 3.4% net margin and $81 million in free cash flow. From a quality standpoint, Amphastar shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.8 warrants caution. On valuation, the stock is attractively valued at 10.3x earnings, with a modest 25% margin of safety vs Graham Number. Growth dynamics show revenue growing at -1.8% and profit growth of -35.6%. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Amphastar's consistent 13% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $81 million in annual free cash flow (8.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer