AMPHAmphastar Pharmaceuticals, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AMPH?
Amphastar Pharmaceuticals, Inc. earns 8.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.72 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Drug Manufacturers - Specialty & Generic median 11% · 12 months to Q2 2026
- Cash conversion
- 2.10×
Cash conversion · 1.06× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −8.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 3.1% |
| FY2021 | 16% |
| FY2022 | 22% |
| FY2023 | 31% |
| FY2024 | 28% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 48%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 11%
- Free cash flow margin
- 21%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $730M
- Free cash flow, trailing twelve months
- $153M
- Net income, trailing twelve months
- $79M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, Specialty & Generic
Ranks #4 of 41 by RyuScore