AMPH - Amphastar Pharmaceuticals: Buy When Fear Is Overblown
2024-05-30 02:06:15 ET
Summary
- Seeking Alpha's screener identified Amphastar Pharmaceuticals as a potential investment candidate based on its solid financials, positive growth in revenue and earnings.
- Despite its strong financials and potential for earnings growth, the company's stock fell 31% in 5 months.
- The article aims to uncover the reasons behind the price decline to determine if the price decline is a temporary setback that offers an opportunity for value investors.
Preamble
My regular readers would know I look for value, growth, and quality in the companies I write about. I have not published much lately as it has been much harder to find good quality, value investments with sustainable growth.
Amphastar Pharmaceuticals, Inc. ( AMPH ) surfaced using Seeking Alpha's screener is interesting. The parameters I set in Seeking Alpha's screeners were:
- Long-term-debt-to-total-capital (between 0% to 50%)
- Past 3-years average revenue growth (greater than 10%)
- Forward Revenue growth (greater than 18%)
- Past 3-years earnings per share growth (greater than 15%)
- Forward earnings per share growth (greater than 26%)
- Price-to-earnings ratio (between 1 and 15)
- Net income margin (greater than 14%)