AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
USA - NYSE:ABC - US03073E1055 - Common Stock
179.98 USD
-0.41 (-0.23%)
179.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABC. 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 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.
In the past year ABC had a positive cash flow from operations.
ABC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ABC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABC (2.76%) is better than 69.09% of its industry peers.
ABC has a better Return On Equity (246.27%) than 99.09% of its industry peers.
The Return On Invested Capital of ABC (12.75%) is better than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABC is above the industry average of 9.33%.
| 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.
In the last couple of years the Profit Margin of ABC has grown nicely.
Looking at the Operating Margin, with a value of 0.99%, ABC is in line with its industry, outperforming 47.27% of the companies in the same industry.
In the last couple of years the Operating Margin of ABC has declined.
With a Gross Margin value of 3.38%, ABC is not doing good in the industry: 83.64% of the companies in the same industry are doing better.
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
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.
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.
ABC's Altman-Z score of 4.63 is amongst the best of the industry. ABC outperforms 85.45% of its industry peers.
ABC has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
ABC has a Debt to FCF ratio of 1.80. This is amongst the best in the industry. ABC outperforms 81.82% of its industry peers.
ABC has a Debt/Equity ratio of 6.06. This is a high value indicating a heavy dependency on external financing.
ABC has a Debt to Equity ratio of 6.06. This is in the lower half of the industry: ABC underperforms 75.45% of its industry peers.
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.
ABC has a worse Current ratio (0.88) than 80.91% of its industry peers.
A Quick Ratio of 0.52 indicates that ABC may have some problems paying 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.
The Revenue has been growing slightly by 7.66% in the past 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
The Earnings Per Share is expected to grow by 8.00% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
ABC is valuated correctly with a Price/Earnings ratio of 15.34.
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.
ABC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.91 indicates a correct valuation of ABC.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, ABC is valued a bit cheaper.
| 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.
ABC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABC is 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
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ABC has a very decent profitability rating, which may justify a higher PE ratio.
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 2.46, 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 2.35.
| 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 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
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%
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 Change-0.15%
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.
Can you provide the valuation status for AMERISOURCEBERGEN CORP?
ChartMill assigns a valuation rating of 5 / 10 to AMERISOURCEBERGEN CORP (ABC). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERISOURCEBERGEN CORP?
AMERISOURCEBERGEN CORP (ABC) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for ABC stock?
The Price/Earnings (PE) ratio for AMERISOURCEBERGEN CORP (ABC) is 15.34 and the Price/Book (PB) ratio is 53.02.
How sustainable is the dividend of AMERISOURCEBERGEN CORP (ABC) stock?
The dividend rating of AMERISOURCEBERGEN CORP (ABC) is 6 / 10 and the dividend payout ratio is 23.49%.