AMERISOURCEBERGEN CORP (ABC) Fundamental Analysis & Valuation

NYSE:ABC • US03073E1055

179.98 USD
-0.41 (-0.23%)
At close: Aug 29, 2023
179.98 USD
0 (0%)
After Hours: 8/29/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ABC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, ABC scores 5 out of 10 in our fundamental rating. ABC was compared to 101 industry peers in the Health Care Providers & Services industry. ABC has only an average score on both its financial health and profitability. ABC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. ABC Profitability Analysis

1.1 Basic Checks

  • ABC had positive earnings in the past year.
  • In the past year ABC had a positive cash flow from operations.
ABC Yearly Net Income VS EBIT VS OCF VS FCFABC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B -2B

1.2 Ratios

  • With a decent Return On Assets value of 2.76%, ABC is doing good in the industry, outperforming 69.09% of the companies in the same industry.
  • The Return On Equity of ABC (246.27%) is better than 99.09% of its industry peers.
  • ABC has a better Return On Invested Capital (12.75%) than 90.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ABC is significantly above the industry average of 8.98%.
Industry RankSector Rank
ROA 2.76%
ROE 246.27%
ROIC 12.75%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.98%
ROIC(5y)13.79%
ABC Yearly ROA, ROE, ROICABC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 500 -500

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.66%, ABC is in line with its industry, outperforming 56.36% of the companies in the same industry.
  • ABC's Profit Margin has improved in the last couple of years.
  • ABC has a Operating Margin of 0.99%. This is comparable to the rest of the industry: ABC outperforms 47.27% of its industry peers.
  • ABC's Operating Margin has declined in the last couple of years.
  • The Gross Margin of ABC (3.38%) is worse than 83.64% of its industry peers.
  • In the last couple of years the Gross Margin of ABC has grown nicely.
Industry RankSector Rank
OM 0.99%
PM (TTM) 0.66%
GM 3.38%
OM growth 3Y4.02%
OM growth 5Y-2.35%
PM growth 3Y14.36%
PM growth 5Y24.54%
GM growth 3Y7.91%
GM growth 5Y3.31%
ABC Yearly Profit, Operating, Gross MarginsABC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 1 -1 2 3

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. ABC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABC is still creating some value.
  • The number of shares outstanding for ABC has been reduced compared to 1 year ago.
  • The debt/assets ratio for ABC has been reduced compared to a year ago.
ABC Yearly Shares OutstandingABC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M 250M
ABC Yearly Total Debt VS Total AssetsABC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 4.63 indicates that ABC is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.63, ABC belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
  • The Debt to FCF ratio of ABC is 1.80, which is an excellent value as it means it would take ABC, only 1.80 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.80, ABC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
  • A Debt/Equity ratio of 6.06 is on the high side and indicates that ABC has dependencies on debt financing.
  • With a Debt to Equity ratio value of 6.06, ABC is not doing good in the industry: 75.45% of the companies in the same industry are doing better.
  • Although ABC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 6.06
Debt/FCF 1.8
Altman-Z 4.63
ROIC/WACC1.6
WACC7.99%
ABC Yearly LT Debt VS Equity VS FCFABC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • ABC has a Current Ratio of 0.88. This is a bad value and indicates that ABC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.88, ABC is not doing good in the industry: 80.91% of the companies in the same industry are doing better.
  • ABC has a Quick Ratio of 0.88. This is a bad value and indicates that ABC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.52, ABC is doing worse than 90.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.52
ABC Yearly Current Assets VS Current LiabilitesABC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ABC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.51% over the past year.
  • Measured over the past years, ABC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.35% on average per year.
  • Looking at the last year, ABC shows a small growth in Revenue. The Revenue has grown by 7.66% in the last year.
  • Measured over the past years, ABC shows a quite strong growth in Revenue. The Revenue has been growing by 9.27% on average per year.
EPS 1Y (TTM)8.51%
EPS 3Y15.89%
EPS 5Y13.35%
EPS Q2Q%11.45%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y9.93%
Revenue growth 5Y9.27%
Sales Q2Q%11.46%

3.2 Future

  • ABC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
  • Based on estimates for the next years, ABC will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y9.02%
EPS Next 2Y8.38%
EPS Next 3Y8.76%
EPS Next 5Y8%
Revenue Next Year8.52%
Revenue Next 2Y6.99%
Revenue Next 3Y6.4%
Revenue Next 5Y5.53%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ABC Yearly Revenue VS EstimatesABC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100B 200B 300B
ABC Yearly EPS VS EstimatesABC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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5

4. ABC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 15.34, which indicates a correct valuation of ABC.
  • Based on the Price/Earnings ratio, ABC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ABC to the average of the S&P500 Index (26.15), we can say ABC is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 13.91, ABC is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ABC indicates a somewhat cheap valuation: ABC is cheaper than 72.73% of the companies listed in the same industry.
  • ABC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.27.
Industry RankSector Rank
PE 15.34
Fwd PE 13.91
ABC Price Earnings VS Forward Price EarningsABC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABC indicates a somewhat cheap valuation: ABC is cheaper than 65.45% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABC indicates a somewhat cheap valuation: ABC is cheaper than 77.27% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.03
EV/EBITDA 11.81
ABC Per share dataABC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 1K

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.7
PEG (5Y)1.15
EPS Next 2Y8.38%
EPS Next 3Y8.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ABC Dividend Analysis

5.1 Amount

  • ABC has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
  • ABC's Dividend Yield is a higher than the industry average which is at 0.49.
  • With a Dividend Yield of 1.08, ABC pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.08%

5.2 History

  • The dividend of ABC has a limited annual growth rate of 1.63%.
  • ABC has paid a dividend for at least 10 years, which is a reliable track record.
  • ABC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.63%
Div Incr Years12
Div Non Decr Years12
ABC Yearly Dividends per shareABC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.5 1 1.5

5.3 Sustainability

  • ABC pays out 23.49% of its income as dividend. This is a sustainable payout ratio.
  • ABC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.49%
EPS Next 2Y8.38%
EPS Next 3Y8.76%
ABC Yearly Income VS Free CF VS DividendABC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 2B -2B
ABC Dividend Payout.ABC Dividend Payout, showing the Payout Ratio.ABC Dividend Payout.PayoutRetained Earnings

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ABC Fundamentals: All Metrics, Ratios and Statistics

AMERISOURCEBERGEN CORP

NYSE:ABC (8/29/2023, 8:04:00 PM)

After market: 179.98 0 (0%)

179.98

-0.41 (-0.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)08-02
Earnings (Next)11-01
Inst Owners95.83%
Inst Owner Change1.47%
Ins Owners0.2%
Ins Owner Change0%
Market Cap36.38B
Revenue(TTM)254.43B
Net Income(TTM)1.69B
Analysts78
Price Target213.76 (18.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
Yearly Dividend1.59
Dividend Growth(5Y)1.63%
DP23.49%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.86%
Min EPS beat(2)2.53%
Max EPS beat(2)5.19%
EPS beat(4)4
Avg EPS beat(4)2.41%
Min EPS beat(4)0.16%
Max EPS beat(4)5.19%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.84%
Min Revenue beat(2)3.66%
Max Revenue beat(2)4.01%
Revenue beat(4)3
Avg Revenue beat(4)1.71%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)4.01%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.31%
PT rev (3m)11.18%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.44%
Valuation
Industry RankSector Rank
PE 15.34
Fwd PE 13.91
P/S 0.14
P/FCF 13.03
P/OCF 11.2
P/B 53.02
P/tB N/A
EV/EBITDA 11.81
EPS(TTM)11.73
EY6.52%
EPS(NY)12.94
Fwd EY7.19%
FCF(TTM)13.82
FCFY7.68%
OCF(TTM)16.08
OCFY8.93%
SpS1258.85
BVpS3.39
TBVpS-67.98
PEG (NY)1.7
PEG (5Y)1.15
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.76%
ROE 246.27%
ROCE 17.48%
ROIC 12.75%
ROICexc 14.11%
ROICexgc N/A
OM 0.99%
PM (TTM) 0.66%
GM 3.38%
FCFM 1.1%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.98%
ROIC(5y)13.79%
ROICexc(3y)20.43%
ROICexc(5y)20.08%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.17%
ROCE(5y)18.91%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-1.39%
ROICexc growth 5Y-2.85%
OM growth 3Y4.02%
OM growth 5Y-2.35%
PM growth 3Y14.36%
PM growth 5Y24.54%
GM growth 3Y7.91%
GM growth 5Y3.31%
F-Score6
Asset Turnover4.16
Health
Industry RankSector Rank
Debt/Equity 6.06
Debt/FCF 1.8
Debt/EBITDA 1.23
Cap/Depr 52.38%
Cap/Sales 0.18%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 165.29%
Current Ratio 0.88
Quick Ratio 0.52
Altman-Z 4.63
F-Score6
WACC7.99%
ROIC/WACC1.6
Cap/Depr(3y)81.88%
Cap/Depr(5y)74.79%
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.51%
EPS 3Y15.89%
EPS 5Y13.35%
EPS Q2Q%11.45%
EPS Next Y9.02%
EPS Next 2Y8.38%
EPS Next 3Y8.76%
EPS Next 5Y8%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y9.93%
Revenue growth 5Y9.27%
Sales Q2Q%11.46%
Revenue Next Year8.52%
Revenue Next 2Y6.99%
Revenue Next 3Y6.4%
Revenue Next 5Y5.53%
EBIT growth 1Y-8%
EBIT growth 3Y14.35%
EBIT growth 5Y6.71%
EBIT Next Year20.02%
EBIT Next 3Y11.44%
EBIT Next 5YN/A
FCF growth 1Y8.92%
FCF growth 3Y2.75%
FCF growth 5Y16.28%
OCF growth 1Y9.91%
OCF growth 3Y4.86%
OCF growth 5Y12.43%

AMERISOURCEBERGEN CORP / ABC FAQ

What is the fundamental rating for ABC stock?

ChartMill assigns a fundamental rating of 5 / 10 to ABC.


What is the valuation status of AMERISOURCEBERGEN CORP (ABC) stock?

ChartMill assigns a valuation rating of 5 / 10 to AMERISOURCEBERGEN CORP (ABC). This can be considered as Fairly Valued.


How profitable is AMERISOURCEBERGEN CORP (ABC) stock?

AMERISOURCEBERGEN CORP (ABC) has a profitability rating of 6 / 10.


How financially healthy is AMERISOURCEBERGEN CORP?

The financial health rating of AMERISOURCEBERGEN CORP (ABC) is 6 / 10.


What is the earnings growth outlook for AMERISOURCEBERGEN CORP?

The Earnings per Share (EPS) of AMERISOURCEBERGEN CORP (ABC) is expected to grow by 9.02% in the next year.