AMERISOURCEBERGEN CORP (ABC)
US03073E1055 - Common Stock
Overall ABC gets a fundamental rating of 5 out of 10. We evaluated ABC against 117 industry peers in the Health Care Providers & Services industry. ABC has an average financial health and profitability rating. ABC has a correct valuation and a medium growth rate.
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.
In the past 5 years ABC always reported a positive cash flow from operatings.
1.2 Ratios
ABC has a Return On Assets of 2.76%. This is in the better half of the industry: ABC outperforms 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 significantly above the industry average of 8.62%.
| 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
The Profit Margin of ABC (0.66%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ABC has grown nicely.
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 has a Gross Margin of 3.38%. This is amonst the worse of the industry: ABC underperforms 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.
The number of shares outstanding for ABC has been reduced compared to 5 years ago.
ABC has a better debt/assets ratio than last year.
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.
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.
ABC's Debt to Equity ratio of 6.06 is on the low side compared to the rest of the industry. ABC is outperformed by 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.6
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.88 indicates that ABC may have some problems paying 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.
A Quick Ratio of 0.52 indicates that ABC may have some problems paying its short term obligations.
ABC's Quick ratio of 0.52 is on the low side compared to the rest of the industry. ABC is outperformed by 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.
The Earnings Per Share has been growing by 13.35% on average over the past years. This is quite good.
Looking at the last year, ABC shows a small growth in Revenue. The Revenue has grown by 7.66% in the last year.
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 growth Q2Q11.45%
Revenue 1Y (TTM)7.66%
Revenue growth 3Y9.93%
Revenue growth 5Y9.27%
Revenue growth Q2Q11.46%
3.2 Future
Based on estimates for the next years, ABC will show a small growth in Earnings Per Share. The EPS will grow by 8.00% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.34, the valuation of ABC can be described as correct.
Based on the Price/Earnings ratio, ABC is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABC to the average of the S&P500 Index (25.20), 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.
When comparing the Price/Forward Earnings ratio of ABC to the average of the S&P500 Index (21.63), we can say ABC is valued slightly 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
ABC's 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
ABC has a Yearly Dividend Yield of 1.08%.
Compared to an average industry Dividend Yield of 2.76, ABC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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
ABC pays out 23.49% of its income as dividend. This is a 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
NYSE:ABC (8/29/2023, 7:04:00 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.7
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 246.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.99% | ||
| PM (TTM) | 0.66% | ||
| GM | 3.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover4.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.51%
EPS 3Y15.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.66%
Revenue growth 3Y9.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y