AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABC - US03073E1055 - Common Stock
179.98 USD
-0.41 (-0.23%)
179.98 USD
0 (0%)
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.
1. Profitability
1.1 Basic Checks
ABC had positive earnings in the past year.
ABC had a positive operating cash flow in the past year.
1.2 Ratios
ABC has a better Return On Assets (2.76%) than 69.09% of its industry peers.
The Return On Equity of ABC (246.27%) is better than 99.09% of its industry peers.
With an excellent Return On Invested Capital value of 12.75%, ABC belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABC is above the industry average of 9.58%.
| Industry Rank | Sector 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%
1.3 Margins
ABC has a Profit Margin of 0.66%. This is comparable to the rest of the industry: ABC outperforms 56.36% of its industry peers.
ABC's Profit Margin has improved in the last couple of years.
ABC has a Operating Margin (0.99%) which is comparable to the rest of the industry.
ABC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 3.38%, ABC is doing worse than 83.64% of the companies in the same industry.
In the last couple of years the Gross Margin of ABC has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ABC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ABC has less shares outstanding
The debt/assets ratio for ABC has been reduced compared to a year ago.
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.
Looking at the Debt to Equity ratio, with a value of 6.06, ABC is doing worse than 75.45% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ABC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.6
WACC7.99%
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.
The Quick ratio of ABC (0.52) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ABC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.51%, which is quite good.
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.
The Revenue is expected to grow by 5.53% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.34 indicates a correct valuation of ABC.
ABC's Price/Earnings ratio is a bit cheaper when compared to the industry. ABC is cheaper than 80.00% of the companies in the same industry.
ABC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 13.91, ABC is valued correctly.
Based on the Price/Forward Earnings ratio, ABC is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
ABC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABC is valued a bit cheaper than 65.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABC is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.03 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
ABC's 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, ABC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.60, ABC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.08, ABC pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of ABC has a limited annual growth rate of 1.63%.
ABC has been paying a dividend for at least 10 years, so it has a reliable track record.
ABC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.63%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
23.49% of the earnings are spent on dividend by ABC. This is a low number and sustainable payout ratio.
The dividend of ABC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.49%
EPS Next 2Y8.38%
EPS Next 3Y8.76%
179.98
-0.41 (-0.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.83%
Inst Owner Change4.99%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.