Pharmaceutical Preparations
Amphastar Pharmaceuticals, Inc., a bio-pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. The company operates through two segments, Finished Pharmaceutical Products and Active Pharmaceutical Ingredient (API). It offers Primatene Mist, an over-the-counter epinephrine inhalation product for the temporary relief of mild symptoms of intermittent asthma; Enoxaparin, a low molecular weight heparin to prevent and treat deep vein thrombosis; Naloxone for opioid overdose; Glucagon for injection emergency kit; and Cortrosyn, a lyophilized powder for use as a diagnostic agent in the screening of patients with adrenocortical insufficiency. The company also provides Amphadase, a bovine-sourced hyaluronidase injection to absorb and disperse other injected drugs; Epinephrine injection for the emergency treatment of allergic reactions; Lidocaine jelly, an anesthetic product for urological procedures; Lidocaine topical solution for various procedures; Phytonadione injection, a vitamin K1 injection for newborn babies; emergency syringe products for emergency use in hospital settings; morphine injection for use with patient controlled analgesia pumps; and Lorazepam injection for surgery and medical procedures. In addition, it offers Neostigmine methylsulfate injection to treat myasthenia gravis and to reverse the effects of muscle relaxants; Isoproterenol hydrochloride injection for mild or transient episodes of heart block; Ganirelix Acetate injection for the inhibition of premature luteinizing hormone surges in women undergoing controlled ovarian hyperstimulation; and Vasopressin to increase blood pressure in adults with vasodilatory shock. Further, the company distributes recombinant human insulin APIs and porcine insulin API. It serves hospitals, care facilities, alternate care sites, clinics, and doctors' offices. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.
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Discounted Cash Flow Valuation of Amphastar Pharmaceuticals, Inc.
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $160.9M | $209.2M | $266.2M | $331.2M | $403M | $479.1M | $556.3M | $630.5M | $697M | $751.2M | $788.8M | $7.888B |
DCF | $181.9M | $201.3M | $217.8M | $230.4M | $238.2M | $240.5M | $237M | $227.9M | $213.5M | $195M | $1.95B | |
Value | $4.133B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -1.1% | 3.8% | 1.5% | -2.3% | 14% | 0.31% | 14% | 18% | 21% | 23% |
ROA | -1.8% | 3.7% | 0.36% | -1.7% | 10% | 1.7% | 13% | 16% | 13% | 13% |
ROE | -0.94% | 3% | 1.1% | -1.8% | 11% | 0.24% | 14% | 17% | 22% | 23% |
The average Net Margin over the past 5 years is +11.05%.
The trend of Net Margin over the past 5 years is +4.1%.
The average ROA over the past 5 years is +8.58%.
The trend of ROA over the past 5 years is +2.87%.
The average ROE over the past 5 years is +10.34%.
The trend of ROE over the past 5 years is +4.27%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | -13.92 | 2.51 | 13.01 | -7.94 | 261.18 | 2.49 | 1.14 | 1.22 | 4.15 | 3.69 |
Debt Equity | 0.18 | 0.13 | 0.16 | 0.19 | 0.13 | 0.13 | 0.18 | 0.15 | 0.94 | 0.88 |
MIN | ||||||||||
Graham Stability | - | - | - | -190% | 100% | 7.6% | 100% | 100% | 100% | -190% |
The Debt/FCF trailing twelve month is 3.69.
The trend of Debt/FCF over the past 5 years is -20.59.
Graham’s Stability measure stands at -1.87.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 14% | 17% | 23% | 29% | 2.1% |
Net Income | 46% | - | 400% | 51% | 130% |
Stockholders Equity | 9.9% | 12% | 13% | 21% | 1.3% |
FCF | 36% | - | 84% | 120% | -290% |
The Revenue CAGR over the past 5 years is +16.94%.
The trend of Revenue growth rate over the past 5 years is +2.07%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +127.22%.
The Equity CAGR over the past 5 years is +11.91%.
The trend of Equity growth rate over the past 5 years is +1.28%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -287.11%.