AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
USA - NYSE:ABC - US03073E1055 - Common Stock
179.98 USD
-0.41 (-0.23%)
179.98 USD
0 (0%)
Taking everything into account, ABC scores 5 out of 10 in our fundamental rating. ABC was compared to 101 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ABC had positive earnings in the past year.
ABC had a positive operating cash flow in the past year.
ABC had positive earnings in 4 of the past 5 years.
ABC had a positive operating cash flow in each of the past 5 years.
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's Return On Equity of 246.27% is amongst the best of the industry. ABC outperforms 99.09% of its industry peers.
With an excellent Return On Invested Capital value of 12.75%, ABC belongs to the best 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 above the industry average of 9.34%.
| 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 (0.66%) which is in line with 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.
ABC has a worse Gross Margin (3.38%) than 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.
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.
A Debt/Equity ratio of 6.06 is on the high side and indicates that ABC has dependencies on debt 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 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.
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.
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
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.
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
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.
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.
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
The Price/Earnings ratio is 15.34, which indicates a correct valuation of ABC.
ABC's Price/Earnings ratio is a bit cheaper when compared to the industry. ABC is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, ABC is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.91 indicates a correct valuation of ABC.
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.
ABC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| 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.
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
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%. 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 2.42.
With a Dividend Yield of 1.08, ABC pays less dividend than the S&P500 average, which is at 2.31.
| 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 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
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-0.15%
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%.