AMERISOURCEBERGEN CORP (ABC) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 102 industry peers in the Health Care Providers & Services industry. ABC has an average financial health and profitability rating. ABC is not valued too expensively and it also shows a decent 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.
1.2 Ratios
- ABC's Return On Assets of 2.76% is fine compared to the rest of the industry. ABC outperforms 69.09% of its industry peers.
- ABC has a Return On Equity of 246.27%. This is amongst the best in the industry. ABC outperforms 99.09% of its industry peers.
- ABC's Return On Invested Capital of 12.75% is amongst the best of the industry. ABC outperforms 90.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ABC is above the industry average of 9.21%.
| 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
- With a Profit Margin value of 0.66%, ABC perfoms like the industry average, outperforming 56.36% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABC has grown nicely.
- The Operating Margin of ABC (0.99%) is comparable to the rest of the 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
- 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
- The debt/assets ratio for ABC has been reduced compared to a year ago.
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.
- ABC has a better Debt to FCF ratio (1.80) than 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.
- 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.
- 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.
- ABC's Current ratio of 0.88 is on the low side compared to the rest of the industry. ABC is outperformed by 80.91% of its industry peers.
- ABC has a Quick 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'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.
- 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
- 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
- ABC is valuated correctly with a Price/Earnings ratio of 15.34.
- Based on the Price/Earnings ratio, ABC is valued a bit cheaper than 80.00% of the companies in the same industry.
- ABC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- ABC is valuated correctly with a Price/Forward Earnings ratio of 13.91.
- 72.73% of the companies in the same industry are more expensive than ABC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ABC to the average of the S&P500 Index (23.94), 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.
- Based on the Price/Free Cash Flow ratio, ABC is valued a bit 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.
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 0.59, ABC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, 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.
- 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)08-02 2023-08-02/bmo
Earnings (Next)11-01 2023-11-01/bmo
Inst Owners95.83%
Inst Owner Change0.22%
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.
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.