Investment Thesis
Amphastar demonstrates solid operational fundamentals with strong profitability (19.5% operating margin, 13.6% net margin) and excellent cash generation (121.2M free cash flow, 16.8% FCF margin). The company maintains a fortress balance sheet with robust liquidity (4.02x current ratio) and manageable leverage (0.79x debt/equity), though top-line growth challenges and declining EPS require monitoring.
AMPH Strengths
- Exceptional cash flow generation with 121.2M FCF and 16.8% FCF margin demonstrating operational efficiency
- Strong profitability metrics across all margins (49.5% gross, 19.5% operating, 13.6% net) indicating pricing power and cost control
- Fortress balance sheet with 4.02x current ratio, 2.90x quick ratio, and 16.3x interest coverage providing financial flexibility
- Solid ROE of 12.4% and ROA of 6.0% indicating effective capital deployment despite stagnant growth
AMPH Risks
- Revenue decline of 1.7% YoY and flat net income growth suggesting loss of market momentum or competitive pressures
- Diluted EPS contracted 33.7% YoY despite stable net income, indicating share dilution from equity issuances or acquisitions
- High debt load of 619.7M (43.5% of assets) limits financial flexibility despite adequate coverage ratios
- Pharmaceutical sector exposure to regulatory risks, patent expirations, and pricing pressures that could impact future margins
Key Metrics to Watch
- Quarterly revenue trends to confirm stabilization or reversal of declining sales
- Operating margin sustainability as pricing pressures and competitive dynamics evolve
- Free cash flow consistency and capital allocation decisions with existing debt levels
- Debt reduction progress relative to operating cash generation capacity
AMPH Financial Metrics
AMPH Profitability Ratios
AMPH Balance Sheet & Liquidity
AMPH 5-Year Financial Trend
5-Year Trend Summary: Amphastar Pharmaceuticals, Inc.'s revenue has grown significantly by 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.60 reflects profitable operations.
AMPH Growth Metrics (YoY)
AMPH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $191.2M | $17.4M | $0.37 |
| Q2 2025 | $174.4M | $25.3M | $0.64 |
| Q1 2025 | $170.5M | $25.3M | $0.51 |
| Q3 2024 | $180.6M | $26.0M | $0.78 |
| Q2 2024 | $145.7M | $26.0M | $0.49 |
| Q1 2024 | $140.0M | $26.0M | $0.50 |
| Q3 2023 | $120.1M | $15.9M | $0.30 |
| Q2 2023 | $123.5M | $17.3M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMPH Capital Allocation
AMPH SEC Filings
Access official SEC EDGAR filings for Amphastar Pharmaceuticals, Inc. (CIK: 0001297184)