AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
USA - NYSE:ABC - US03073E1055 - Common Stock
179.98 USD
-0.41 (-0.23%)
179.98 USD
0 (0%)
ABC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 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
In the past year ABC was profitable.
ABC had a positive operating cash flow in the past year.
Of the past 5 years ABC 4 years were profitable.
In the past 5 years ABC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ABC (2.76%) is better than 69.09% of its industry peers.
ABC's Return On Equity of 246.27% is amongst the best of the industry. ABC outperforms 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.
The Average Return On Invested Capital over the past 3 years for ABC is above the industry average of 9.28%.
| 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's Profit Margin of 0.66% is in line compared 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.
ABC's Operating Margin of 0.99% is in line compared to the rest of the industry. ABC outperforms 47.27% of its industry peers.
In the last couple of years the Operating Margin of ABC has declined.
The Gross Margin of ABC (3.38%) is worse than 83.64% of its industry peers.
In the last couple of years the Gross Margin of ABC has grown nicely.
| 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.
Compared to 1 year ago, ABC has less shares outstanding
Compared to 1 year ago, ABC has an improved debt to assets ratio.
2.2 Solvency
ABC has an Altman-Z score of 4.63. This indicates that ABC is financially healthy and has little risk of bankruptcy at the moment.
ABC has a better Altman-Z score (4.63) 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.
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.
The Debt to Equity ratio of ABC (6.06) is worse 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 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.
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.
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.
ABC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.66%.
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
ABC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
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.
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
The Price/Earnings ratio is 15.34, which indicates a correct valuation of ABC.
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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.83.
Based on the Price/Forward Earnings ratio of 13.91, the valuation of ABC can be described as correct.
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.
ABC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABC is valued a bit cheaper than the industry average as 65.45% of the companies are valued more expensively.
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 2.45, ABC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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 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
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%
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-0.37%
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%.