AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
NYSE:ABC - New York Stock Exchange, Inc. - US03073E1055 - Common Stock - Currency: USD
Overall ABC gets a fundamental rating of 5 out of 10. We evaluated ABC against 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 correct valuation and a medium growth rate.
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.
Of the past 5 years ABC 4 years were profitable.
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.
Looking at the Return On Invested Capital, with a value of 12.75%, ABC belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
ABC had an Average Return On Invested Capital over the past 3 years of 13.98%. This is above the industry average of 9.71%.
| 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.
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.
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
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.
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.
With an excellent Altman-Z score value of 4.63, ABC belongs to the best 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.
With an excellent Debt to FCF ratio value of 1.80, ABC belongs to the best 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.
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.
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 Current ratio of 0.88. This is amonst the worse of the industry: ABC underperforms 80.91% of its industry peers.
A Quick Ratio of 0.52 indicates that ABC may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, ABC is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 13.35% on average over the past years. This is quite good.
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
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
With a Price/Earnings ratio of 15.34, ABC is valued correctly.
80.00% of the companies in the same industry are more expensive than ABC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABC to the average of the S&P500 Index (27.50), we can say ABC is valued slightly cheaper.
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 36.44, ABC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
ABC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABC is cheaper than 65.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABC indicates a somewhat cheap valuation: ABC is cheaper than 77.27% of the companies listed 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.
The decent profitability rating of ABC 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 2.51, ABC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 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.
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 Change0.03%
Ins Owners0.2%
Ins Owner Change0%
Market Cap36.38B
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
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%
ROICexcg growth 3YN/A
ROICexcg 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%