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AmerisourceBergen

NYSE:ABC
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABC
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. The last earnings update was 77 days ago. More info.


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ABC Share Price and Events
7 Day Returns
-2.3%
NYSE:ABC
-7.2%
US Healthcare
0.8%
US Market
1 Year Returns
-21%
NYSE:ABC
-5.6%
US Healthcare
5.9%
US Market
ABC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AmerisourceBergen (ABC) -2.3% -10.6% -9.3% -21% -21.1% 11.7%
US Healthcare -7.2% -7.9% -9.9% -5.6% 12.9% 61.6%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • ABC underperformed the Healthcare industry which returned -5.6% over the past year.
  • ABC underperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
ABC
Industry
5yr Volatility vs Market

Value

 Is AmerisourceBergen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AmerisourceBergen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AmerisourceBergen.

NYSE:ABC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ABC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.716 (1 + (1- 21%) (30.55%))
0.925
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.925 * 5.96%)
8.25%

Discounted Cash Flow Calculation for NYSE:ABC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AmerisourceBergen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ABC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.25%)
2019 1,618.56 Analyst x8 1,495.26
2020 1,584.63 Analyst x6 1,352.40
2021 1,826.30 Analyst x4 1,439.92
2022 1,684.50 Analyst x1 1,226.95
2023 1,723.60 Analyst x1 1,159.79
2024 1,757.20 Est @ 1.95% 1,092.33
2025 1,795.57 Est @ 2.18% 1,031.15
2026 1,837.72 Est @ 2.35% 974.96
2027 1,882.97 Est @ 2.46% 922.87
2028 1,930.84 Est @ 2.54% 874.25
Present value of next 10 years cash flows $11,569.89
NYSE:ABC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,930.84 × (1 + 2.73%) ÷ (8.25% – 2.73%)
$35,960.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $35,960.92 ÷ (1 + 8.25%)10
$16,282.37
NYSE:ABC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,569.89 + $16,282.37
$27,852.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $27,852.26 / 211.09
$131.95
NYSE:ABC Discount to Share Price
Calculation Result
Value per share (USD) From above. $131.95
Current discount Discount to share price of $72.45
= -1 x ($72.45 - $131.95) / $131.95
45.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AmerisourceBergen is available for.
Intrinsic value
45%
Share price is $72.45 vs Future cash flow value of $131.95
Current Discount Checks
For AmerisourceBergen to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AmerisourceBergen's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AmerisourceBergen's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AmerisourceBergen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AmerisourceBergen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ABC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.50
NYSE:ABC Share Price ** NYSE (2019-04-18) in USD $72.45
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 21.71x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AmerisourceBergen.

NYSE:ABC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ABC Share Price ÷ EPS (both in USD)

= 72.45 ÷ 5.50

13.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AmerisourceBergen is good value based on earnings compared to the US Healthcare industry average.
  • AmerisourceBergen is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does AmerisourceBergen's expected growth come at a high price?
Raw Data
NYSE:ABC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
5.3%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:ABC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.17x ÷ 5.3%

2.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AmerisourceBergen is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AmerisourceBergen's assets?
Raw Data
NYSE:ABC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $14.45
NYSE:ABC Share Price * NYSE (2019-04-18) in USD $72.45
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.32x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NYSE:ABC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ABC Share Price ÷ Book Value per Share (both in USD)

= 72.45 ÷ 14.45

5.02x

* Primary Listing of AmerisourceBergen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AmerisourceBergen is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess AmerisourceBergen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. AmerisourceBergen has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AmerisourceBergen expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AmerisourceBergen expected to grow at an attractive rate?
  • AmerisourceBergen's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AmerisourceBergen's earnings growth is positive but not above the United States of America market average.
  • AmerisourceBergen's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ABC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ABC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 5.3%
NYSE:ABC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.3%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ABC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ABC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 228,073 2,088 1,663 1
2022-09-30 211,981 2,065 1,577 2
2021-09-30 198,369 2,147 1,388 10
2020-09-30 188,856 2,055 1,349 17
2019-09-30 179,732 1,919 1,332 17
NYSE:ABC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 172,866 1,880 1,190
2018-09-30 167,940 1,411 1,658
2018-06-30 163,763 2,126 1,081
2018-03-31 159,327 1,059 855
2017-12-31 155,441 1,945 979
2017-09-30 153,144 1,504 364
2017-06-30 151,584 1,478 855
2017-03-31 149,759 1,915 1,154
2016-12-31 148,310 1,997 1,346
2016-09-30 146,850 3,178 1,428
2016-06-30 144,759 2,986 1,643
2016-03-31 142,111 3,916 1,508

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AmerisourceBergen's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
  • AmerisourceBergen's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ABC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from AmerisourceBergen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ABC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 8.88 8.88 8.88 1.00
2022-09-30 8.13 8.13 8.13 1.00
2021-09-30 6.78 7.40 6.24 4.00
2020-09-30 6.43 7.23 5.78 6.00
2019-09-30 6.26 6.79 5.32 6.00
NYSE:ABC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.50
2018-09-30 7.61
2018-06-30 4.94
2018-03-31 3.91
2017-12-31 4.49
2017-09-30 1.67
2017-06-30 3.91
2017-03-31 5.30
2016-12-31 6.25
2016-09-30 6.73
2016-06-30 7.81
2016-03-31 7.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AmerisourceBergen is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess AmerisourceBergen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AmerisourceBergen has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AmerisourceBergen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AmerisourceBergen's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AmerisourceBergen has delivered over 20% year on year earnings growth in the past 5 years.
  • AmerisourceBergen's 1-year earnings growth is less than its 5-year average (21.6% vs 33.6%)
  • AmerisourceBergen's earnings growth has exceeded the US Healthcare industry average in the past year (21.6% vs 7.3%).
Earnings and Revenue History
AmerisourceBergen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AmerisourceBergen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ABC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 172,865.76 1,190.20 2,558.36
2018-09-30 167,939.64 1,658.41 2,460.30
2018-06-30 163,762.51 1,080.53 2,363.37
2018-03-31 159,327.35 855.07 2,262.29
2017-12-31 155,440.89 979.09 2,166.71
2017-09-30 153,143.83 364.48 2,128.73
2017-06-30 151,584.41 854.76 2,098.11
2017-03-31 149,758.95 1,153.56 2,089.08
2016-12-31 148,309.91 1,345.54 2,086.71
2016-09-30 146,849.69 1,427.93 2,091.24
2016-06-30 144,759.46 1,643.25 2,107.14
2016-03-31 142,111.34 1,508.26 2,093.45
2015-12-31 139,082.25 391.42 2,016.43
2015-09-30 135,961.80 -138.17 1,907.84
2015-06-30 132,080.13 -431.37 1,820.93
2015-03-31 128,194.73 -658.32 1,705.79
2014-12-31 123,981.37 35.15 1,639.69
2014-09-30 119,569.13 281.78 1,580.66
2014-06-30 112,449.46 266.79 1,486.32
2014-03-31 104,007.95 343.68 1,429.88
2013-12-31 96,075.72 367.75 1,377.07
2013-09-30 87,959.17 493.44 1,333.71
2013-06-30 82,554.57 633.32 1,304.55
2013-03-31 79,974.73 759.39 1,277.19
2012-12-31 79,159.43 774.39 1,216.07
2012-09-30 78,080.81 761.36 1,152.56
2012-06-30 79,210.32 707.54 1,119.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst AmerisourceBergen has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • AmerisourceBergen used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • AmerisourceBergen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AmerisourceBergen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AmerisourceBergen has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AmerisourceBergen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AmerisourceBergen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AmerisourceBergen's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AmerisourceBergen's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AmerisourceBergen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AmerisourceBergen Company Filings, last reported 3 months ago.

NYSE:ABC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,164.73 4,672.86 2,540.16
2018-09-30 3,049.96 4,662.49 2,492.52
2018-06-30 3,275.93 4,765.35 2,388.93
2018-03-31 3,363.60 4,892.92 2,091.36
2017-12-31 2,874.58 4,637.32 3,037.75
2017-09-30 2,064.46 3,793.69 2,435.12
2017-06-30 2,553.51 3,785.91 1,311.47
2017-03-31 2,529.29 4,455.45 2,404.43
2016-12-31 2,116.56 4,479.56 1,791.13
2016-09-30 2,129.40 4,462.69 2,767.93
2016-06-30 1,879.32 4,407.22 1,865.20
2016-03-31 2,191.16 4,488.14 2,525.29
2015-12-31 1,300.02 4,501.73 978.09
2015-09-30 616.39 3,739.23 2,218.24
2015-06-30 1,575.62 3,750.15 2,555.18
2015-03-31 1,916.26 4,006.72 2,336.98
2014-12-31 1,768.35 1,995.89 2,298.76
2014-09-30 1,956.90 1,995.63 1,808.51
2014-06-30 1,986.36 1,995.48 1,261.86
2014-03-31 2,145.52 1,396.95 696.73
2013-12-31 2,247.80 1,819.78 347.47
2013-09-30 2,319.75 1,396.61 1,231.01
2013-06-30 2,418.19 1,396.44 1,567.59
2013-03-31 2,346.28 1,396.27 1,347.30
2012-12-31 2,337.24 1,396.11 417.40
2012-09-30 2,454.84 1,395.93 1,066.61
2012-06-30 2,929.72 1,875.97 1,655.75
  • AmerisourceBergen's level of debt (147.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (80.8% vs 147.7% today).
  • Debt is well covered by operating cash flow (40.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9x coverage).
X
Financial health checks
We assess AmerisourceBergen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AmerisourceBergen has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is AmerisourceBergen's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.21%
Current annual income from AmerisourceBergen dividends. Estimated to be 2.28% next year.
If you bought $2,000 of AmerisourceBergen shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AmerisourceBergen's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • AmerisourceBergen's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ABC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ABC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 1.73 4.00
2020-09-30 1.67 9.00
2019-09-30 1.60 9.00
NYSE:ABC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-05 1.600 2.000
2019-01-31 1.600 1.897
2018-11-20 1.600 2.011
2018-11-06 1.600 1.802
2018-08-09 1.520 1.718
2018-05-10 1.520 1.765
2018-02-07 1.520 1.667
2017-11-09 1.520 1.683
2017-08-10 1.460 1.829
2017-08-03 1.460 1.817
2017-02-09 1.460 1.628
2016-11-10 1.460 1.791
2016-08-04 1.360 1.654
2016-05-10 1.360 1.721
2016-02-09 1.360 1.573
2015-11-06 1.360 1.407
2015-08-06 1.160 1.171
2015-05-05 1.160 1.047
2015-02-05 1.160 1.073
2014-11-03 1.160 1.270
2014-08-07 0.940 1.214
2014-05-09 0.940 1.294
2014-02-07 0.940 1.421
2013-11-05 0.940 1.360
2013-08-08 0.840 1.379
2013-05-06 0.840 1.507
2013-02-04 0.840 1.672
2012-11-01 0.840 1.959
2012-08-09 0.520 1.341
2012-05-10 0.520 1.372
2012-02-03 0.520 1.377
2011-11-10 0.520 1.377
2011-08-11 0.460 1.192
2011-05-13 0.460 1.136
2011-02-04 0.400 1.029
2010-11-11 0.400 1.195
2010-08-12 0.320 1.054
2010-05-13 0.320 1.027
2010-01-27 0.320 1.108
2009-11-12 0.320 1.247
2009-08-06 0.240 1.094
2009-05-06 0.200 1.085
2009-04-20 0.200 1.150

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of AmerisourceBergen's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
X
Income/ dividend checks
We assess AmerisourceBergen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AmerisourceBergen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AmerisourceBergen has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AmerisourceBergen's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Collis
COMPENSATION $11,514,115
AGE 57
TENURE AS CEO 7.8 years
CEO Bio

Mr. Steven H. Collis, also known as Steve, has been the Chief Executive Officer and President of AmerisourceBergen Corporation since July 2011 and November 2010. Previously, Mr. Collis served as the Chief Operating Officer of AmerisourceBergen Corporation from November 12, 2010 to July 2011 and served as its Unit President from September 2007 to November 12, 2010. He served as the President of AmerisourceBergen Drug Corporation of AmerisourceBergen Corporation from September 1, 2009 to November 12, 2010. Prior to that, he served as an Executive Vice President of Amerisourcebergen Corp., from September 18, 2007 to November 12, 2010. He served as President of AmerisourceBergen Specialty Group Inc., a subsidiary of AmerisourceBergen Corp., based in Dallas, Texas from August 2001 to September 1, 2009. He served as Senior Vice President of Amerisourcebergen Corp. from August 2001 to September 2007. He was Executive Vice President of AmerisourceBergen Specialty Group from September 2007 to September 2009. Mr. Collis served as Senior Vice President and President of ASD Specialty Healthcare Inc., was part of Bergen Brunswig Corporation. Mr. Collis served as Senior Executive Vice President of Bergen from February 2000 to August 2001 and President of ASD Specialty Healthcare Inc., a segment of Bergen Brunswig Corp., from September 2000 to August 2001. Mr. Collis served as an Executive Vice President of ASD Specialty Healthcare Inc., from 1996 to August 2000 and served as its General Manager from 1994 to 1996. He served as an Executive Vice President of Bergen Brunswig Corp. since February 2000. Prior to joining ASD, he was a Principal and General Manager of Sterling Medical in Irvine, California. He has been the Chairman of the Board at AmerisourceBergen Corporation since March 3, 2016. He has completed his articles of clerkship with Price Waterhouse and received his Charter Accountancy license, the South African equivalent of Certified Public Accountant, in 1986. Prior to emigrating to the United States, Mr. Collis served as a Member of the Johannesburg Stock Exchange. Mr. Collis has been a Director of AmerisourceBergen Corp. since May 2011 and MWI Veterinary Supply, Inc. since February 2015. He serves as a Director of The Healthcare Distribution Management Association. He served as a Director of Thoratec Corp. from January 1, 2008 to October 8, 2015. He is an avid supporter of the American Cancer Society and other health-related charities. Mr. Collis earned a Bachelor of Commerce with Honors degree from University of the Witwatersrand in Johannesburg.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AmerisourceBergen management team in years:

1.8
Average Tenure
55.5
Average Age
  • The average tenure for the AmerisourceBergen management team is less than 2 years, this suggests a new team.
Management Team

Steve Collis

TITLE
Chairman
COMPENSATION
$12M
AGE
57
TENURE
7.8 yrs

Jim Cleary

TITLE
CFO & Executive VP
COMPENSATION
$3M
AGE
55
TENURE
0.4 yrs

John Chou

TITLE
Executive VP and Chief Legal & Business Officer
COMPENSATION
$4M
AGE
62
TENURE
1.8 yrs

Robert Mauch

TITLE
Executive VP & Group President
COMPENSATION
$3M
AGE
51
TENURE
4.2 yrs

Dale Danilewitz

TITLE
Executive VP & Chief Information Officer
AGE
56
TENURE
6.8 yrs

Gina Clark

TITLE
Executive VP and Chief Communications & Administration Officer
AGE
61
TENURE
1.8 yrs

Bennett Murphy

TITLE
Vice President of Investor Relations

Kathy Gaddes

TITLE
Executive VP & Chief Compliance Officer
AGE
55
TENURE
0.5 yrs

Silvana Battaglia

TITLE
Executive VP & Chief Human Resources Officer
TENURE
0.3 yrs

Sun Park

TITLE
Executive VP and Group CFO of Pharmaceutical Distribution & Strategic Global Sourcing
AGE
42
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the AmerisourceBergen board of directors in years:

5.9
Average Tenure
65
Average Age
  • The tenure for the AmerisourceBergen board of directors is about average.
Board of Directors

Henry McGee

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
14.4 yrs

Steve Collis

TITLE
Chairman
COMPENSATION
$12M
AGE
57
TENURE
3.1 yrs

Mike Long

TITLE
Independent Director
COMPENSATION
$245K
AGE
59
TENURE
12.9 yrs

Dick Gochnauer

TITLE
Independent Director
COMPENSATION
$235K
AGE
69
TENURE
10.6 yrs

Lon Greenberg

TITLE
Independent Director
COMPENSATION
$245K
AGE
68
TENURE
5.9 yrs

Jane Henney

TITLE
Lead Independent Director
COMPENSATION
$280K
AGE
71
TENURE
3.1 yrs

Kathi Hyle

TITLE
Independent Director
COMPENSATION
$230K
AGE
59
TENURE
8.9 yrs

Ornella Barra

TITLE
Director
AGE
65
TENURE
4.3 yrs

D. Durcan

TITLE
Independent Director
COMPENSATION
$225K
AGE
57
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AmerisourceBergen insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Mar 19 Sell James Cleary Individual 21. Mar 19 21. Mar 19 -6 $80.30 $-482
28. Mar 19 Buy James Cleary Individual 19. Mar 19 26. Mar 19 12 $81.20 $944
06. Mar 19 Buy James Cleary Individual 06. Mar 19 06. Mar 19 2,000 $77.52 $155,040
17. Aug 18 Sell John Chou Individual 16. Aug 18 16. Aug 18 -1 $85.12 $-54
X
Management checks
We assess AmerisourceBergen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AmerisourceBergen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is AmerisourceBergen Corporation (NYSE:ABC) A Financially Sound Company?

AmerisourceBergen Corporation (NYSE:ABC), a large-cap worth US$16b, comes to mind for investors seeking a strong and reliable stock investment. … Let’s take a look at AmerisourceBergen’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

These Factors Make AmerisourceBergen Corporation (NYSE:ABC) An Interesting Investment

AmerisourceBergen Corporation (NYSE:ABC) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Should Investors Be Happy About AmerisourceBergen Corporation’s (NYSE:ABC) Cash Levels?

AmerisourceBergen Corporation (NYSE:ABC) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … AmerisourceBergen’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether AmerisourceBergen’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Do You Like AmerisourceBergen Corporation (NYSE:ABC) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … AmerisourceBergen has a price to earnings ratio of 14.73, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

AmerisourceBergen Corporation (NYSE:ABC): What We Can Expect From This Growth Stock

Based on AmerisourceBergen Corporation's (NYSE:ABC) earnings update in December 2018,. … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 34%

Simply Wall St -

Update: AmerisourceBergen Stock Gained 20% In The Last Five Years

Better yet, you'd like to see the share price move up more than the market average. … But AmerisourceBergen Corporation (NYSE:ABC) has fallen short of that second goal, with a share price rise of 20% over five years, which is below the market return. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Why AmerisourceBergen Corporation’s (NYSE:ABC) Return On Capital Employed Is Impressive

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Did AmerisourceBergen Corporation's (NYSE:ABC) Recent Earnings Growth Beat The Trend?

Below, I assess ABC's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements. … Did ABC beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which ABC is growing has slowed down.

Simply Wall St -

When Should You Buy AmerisourceBergen Corporation (NYSE:ABC)?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at AmerisourceBergen’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Does The Data Make AmerisourceBergen Corporation (NYSE:ABC) An Attractive Investment?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Company Info

Description

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers. It also provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; and packaging solutions to various institutional and retail healthcare providers. In addition, this segment distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; provides other services primarily to physicians who specialize in various disease states, primarily oncology, as well as to other healthcare providers, including hospitals and dialysis clinics; and offers data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers. The company’s Other segment provides integrated manufacturer services, such as clinical trial support, product post-approval, and commercialization support; offers specialty transportation and logistics services for the biopharmaceutical industry; and sells pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and various other products to customers in both the companion animal and production animal markets, as well as provides demand-creating sales force services to manufacturers. AmerisourceBergen Corporation was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.

Details
Name: AmerisourceBergen Corporation
ABC
Exchange: NYSE
Founded: 1985
$15,293,462,747
211,089,893
Website: http://www.amerisourcebergen.com
Address: AmerisourceBergen Corporation
1300 Morris Drive,
Chesterbrook,
Pennsylvania, 19087,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ABC Common Shares New York Stock Exchange US USD 04. Apr 1995
DB ABG Common Shares Deutsche Boerse AG DE EUR 04. Apr 1995
LSE 0HF3 Common Shares London Stock Exchange GB USD 04. Apr 1995
Number of employees
Current staff
Staff numbers
20,500
AmerisourceBergen employees.
Industry
Health Care Distributors
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:31
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.