AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis

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 Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall ABC gets a fundamental rating of 5 out of 10. We evaluated ABC against 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.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year ABC was profitable.
  • 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.
  • 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.
  • ABC's Return On Invested Capital of 12.75% is amongst the best of the industry. ABC outperforms 90.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ABC is above the industry average of 9.13%.
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

  • With a Profit Margin value of 0.66%, ABC perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
  • 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 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. 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.
  • 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.
  • The Altman-Z score of ABC (4.63) is better than 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's Debt to FCF ratio of 1.80 is amongst the best of 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 worse Debt to Equity ratio (6.06) than 75.45% of its industry peers.
  • 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 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.
  • The Current ratio of ABC (0.88) is worse than 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.
  • ABC has a Quick ratio of 0.52. This is amonst the worse of the industry: ABC underperforms 90.00% of its industry peers.
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. 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.
  • ABC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.66%.
  • The Revenue has been growing by 9.27% on average over the past years. This is quite good.
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.
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 15.34, ABC is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of ABC indicates a somewhat cheap valuation: ABC is cheaper than 80.00% of the companies listed in the same industry.
  • ABC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 13.91, the valuation of ABC can be described as correct.
  • 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.
  • When comparing the Price/Forward Earnings ratio of ABC to the average of the S&P500 Index (24.95), we can say ABC is valued slightly cheaper.
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

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 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

  • 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%

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

6

5. Dividend

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 0.48.
  • 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 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
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

  • 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%
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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Find the best dividend stocksShow peers with best dividend

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.