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 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of ABC get a neutral evaluation. Nothing too spectacular is happening here. ABC has a decent growth rate and is not valued too expensively.
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
- 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.
- With an excellent Return On Equity value of 246.27%, ABC belongs to the best of the industry, outperforming 99.09% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years for ABC is above the industry average of 9.16%.
| 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 (0.66%) which is comparable to the rest of the 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.
- ABC's Gross Margin of 3.38% is on the low side compared to the rest of the industry. ABC is outperformed by 83.64% of its industry peers.
- ABC's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABC is creating some value.
- The number of shares outstanding for ABC has been reduced compared to 1 year ago.
- Compared to 1 year ago, ABC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.63 indicates that ABC is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ABC (4.63) is better than 85.45% of its industry peers.
- 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.
- The Debt to FCF ratio of ABC (1.80) is better than 81.82% of its industry peers.
- 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 does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 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.
- ABC has a Current ratio of 0.88. This is amonst the worse of the industry: ABC underperforms 80.91% of its industry peers.
- 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
- The Earnings Per Share has grown by an nice 8.51% over the past year.
- ABC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.35% yearly.
- Looking at the last year, ABC shows a small growth in Revenue. The Revenue has grown by 7.66% in the last year.
- ABC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.27% yearly.
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
- The Earnings Per Share is expected to grow by 8.00% on average over the next years.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.34, ABC is valued correctly.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ABC is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 13.91, ABC is valued correctly.
- ABC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABC is cheaper than 72.73% of the companies in the same industry.
- ABC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.91 |
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.
- 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
- ABC has a Yearly Dividend Yield of 1.08%.
- ABC's Dividend Yield is a higher than the industry average which is at 0.46.
- Compared to an average S&P500 Dividend Yield of 1.82, ABC's dividend is way lower than the S&P500 average.
| 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 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
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%
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.