Amphastar Pharmaceuticals (AMPH) Margin Compression Reinforces Bearish Narratives Despite Low 9.5x P/E

Amphastar Pharmaceuticals (AMPH) closed out FY 2025 with Q4 revenue of US$183.1 million and basic EPS of US$0.53, alongside net income of US$24.4 million. The trailing twelve months showed revenue of US$719.9 million and EPS of US$2.10. Over the past six quarters, revenue has ranged between US$170.5 million and US$191.8 million per quarter, with basic EPS moving between US$0.37 and US$0.83. This leaves investors focused squarely on how efficiently that top line is converting into profit. Taken together, the latest figures highlight a story centered on margin quality and how much earnings power Amphastar can retain from each dollar of sales.

See our full analysis for Amphastar Pharmaceuticals.

With the headline numbers on the table, the next step is to compare these results with the most common stories around Amphastar, to see which narratives hold up and which appear out of sync with the margin trends and profit profile investors are watching.

See what the community is saying about Amphastar Pharmaceuticals

Margins Step Down From 21.8% To 13.6%

• Over the last year, net profit margin sat at 13.6%, compared with 21.8% the year before, while trailing twelve month net income was US$98.1 million on US$719.9 million of revenue.
• Critics highlight this margin compression as a key bearish point, and the recent numbers give them concrete data to point to:
  • Trailing twelve month EPS moved from US$3.29 in late FY 2024 to US$2.10 by FY 2025, alongside net income moving from US$159.5 million to US$98.1 million on a similar revenue base of around US$720 million to US$732 million.
  • Forecast revenue growth of about 4.8% per year and earnings growth of roughly 8.5% per year are both below the broader US market forecasts, which bears argue leaves less room for margin pressure without squeezing overall earnings power.

Amphastar’s shrinking margin is exactly the type of pressure skeptics worry about. If you want to see how the cautious case fits these figures over time, take a look at 🐻 Amphastar Pharmaceuticals Bear Case.

Valuation Screens As Cheap On 9.5x P/E

• The shares trade on a trailing P/E of 9.5x, compared with 19.9x for the wider US pharmaceuticals group and 20.7x for peers, and the DCF fair value in the data sits at US$93.24 versus a current share price of US$20.27.
• Supporters of the bullish view point to this valuation gap as a key part of their case, and the earnings profile adds more context:
  • Over the past five years, earnings growth averaged 28.3% per year, while trailing twelve month earnings of US$98.1 million and EPS of US$2.10 are being valued at a discount multiple despite that longer term track record.
  • Analysts in the dataset also reference a potential 54.3% upside from current levels, which bulls argue lines up with both the low P/E and the large gap between the share price and the DCF fair value figure.

If you are curious how supporters connect this low P/E and the margin story to a longer term upside case, you can read the full bullish take here: 🐂 Amphastar Pharmaceuticals Bull Case.

Quarterly EPS Swings Against Slower Growth Forecasts

• Within FY 2025, basic EPS moved from US$0.53 in Q1 to US$0.66 in Q2, then down to US$0.37 in Q3 before ending at US$0.53 in Q4, while quarterly revenue stayed in a relatively tight band between US$170.5 million and US$191.8 million.
• The balanced consensus narrative leans on these mixed signals, and the forecast numbers help frame why the view sits in the middle rather than fully bullish or bearish:
  • Consensus assumptions call for revenue growth of about 4.7% per year and earnings reaching roughly US$142.5 million by around 2028, which is higher than the latest trailing twelve month net income of US$98.1 million but still a step down from the prior twelve month figure of US$159.5 million.
  • At the same time, profit margins are expected to move from 18.6% to 17.2%, which fits with the idea that the business could grow, but with profitability that is lighter than what was seen in the earlier period referenced in the forecasts.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Amphastar Pharmaceuticals on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.

If this mix of bullish and bearish threads leaves you unsure, it is a good time to review the numbers yourself and decide where you stand. You can start with 4 key rewards and 2 important warning signs.

See What Else Is Out There

Amphastar’s compressed margins and uneven EPS, alongside slower forecast growth, leave you carrying more earnings uncertainty than some investors may be comfortable with.

If that earnings wobble feels like a red flag, now is a good time to check our 77 resilient stocks with low risk scores where steadier profiles can help balance your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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