AMERISOURCEBERGEN CORP (ABC) Fundamental Analysis & Valuation

NYSE:ABC • US03073E1055

Current stock price

179.98 USD
-0.41 (-0.23%)
At close:
179.98 USD
0 (0%)
After Hours:

This ABC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ABC Profitability Analysis

1.1 Basic Checks

  • ABC had positive earnings in the past year.
  • ABC had a positive operating cash flow in the past year.
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

  • Looking at the Return On Assets, with a value of 2.76%, ABC is in the better half of 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.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for ABC is significantly above the industry average of 8.92%.
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

  • 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.
  • ABC has a Operating Margin (0.99%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of ABC has declined.
  • 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 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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5

2. ABC Health Analysis

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.
  • Compared to 1 year ago, ABC has less shares outstanding
  • 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.
  • 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.
  • ABC has a Debt/Equity ratio of 6.06. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 6.06, ABC is doing worse than 75.45% of the companies in the same industry.
  • 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 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.
  • 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.
  • 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 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. ABC Growth Analysis

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.
  • The Revenue has been growing slightly by 7.66% in the past year.
  • 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

  • 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

  • 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.
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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5

4. ABC Valuation Analysis

4.1 Price/Earnings Ratio

  • ABC is valuated correctly with a Price/Earnings ratio of 15.34.
  • 80.00% of the companies in the same industry are more expensive than ABC, based on the Price/Earnings ratio.
  • ABC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
  • 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.
  • When comparing the Price/Forward Earnings ratio of ABC to the average of the S&P500 Index (24.04), 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 40 50

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.
  • 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 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. ABC Dividend Analysis

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 0.50, ABC pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, ABC's dividend is way lower than the S&P500 average.
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 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
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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ABC Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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.