AmerisourceBergen (NYSE:ABC) - Share price, News & Analysis

ABC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	3/6
Dividends	4/6

ABC Stock Overview

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally.

Rewards

Trading at 42.7% below our estimate of its fair value

Earnings are forecast to grow 7.83% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

AmerisourceBergen Competitors

McKesson

NYSE:MCK

US$46.9b

Cardinal Health

NYSE:CAH

US$15.2b

Covetrus

NasdaqGS:CVET

US$2.7b

United Parcel Service

NYSE:UPS

US$149.4b

Price History & Performance

Summary of all time highs, changes and price drops for AmerisourceBergen
Historical stock prices
Current Share Price	US$150.18
52 Week High	US$167.19
52 Week Low	US$111.34
Beta	0.45
1 Month Change	-8.99%
3 Month Change	6.13%
1 Year Change	25.08%
3 Year Change	86.14%
5 Year Change	65.03%
Change since IPO	4,985.46%

Shareholder Returns

	ABC	US Healthcare	US Market
7D	-1.8%	0.09%	-2.7%
1Y	25.1%	2.5%	-12.9%

Return vs Industry: ABC exceeded the US Healthcare industry which returned 2.5% over the past year.

Return vs Market: ABC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is ABC's price volatile compared to industry and market?
ABC volatility
ABC Average Weekly Movement	3.9%
Healthcare Industry Average Movement	10.6%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: ABC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ABC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	40,000	Steve Collis	https://www.amerisourcebergen.com

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, 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 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.

AmerisourceBergen Fundamentals Summary

How do AmerisourceBergen's earnings and revenue compare to its market cap?
ABC fundamental statistics
Market Cap	US$31.46b
Earnings (TTM)	US$1.73b
Revenue (TTM)	US$229.67b

18.2x

P/E Ratio

0.1x

P/S Ratio

Is ABC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABC income statement (TTM)
Revenue	US$229.67b
Cost of Revenue	US$221.58b
Gross Profit	US$8.08b
Other Expenses	US$6.36b
Earnings	US$1.73b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.24
Gross Margin	3.52%
Net Profit Margin	0.75%
Debt/Equity Ratio	712.6%

How did ABC perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is AmerisourceBergen undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

42.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ABC ($150.18) is trading below our estimate of fair value ($262.23)

Significantly Below Fair Value: ABC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ABC is good value based on its PE Ratio (18.2x) compared to the US Healthcare industry average (19x).

PE vs Market: ABC is poor value based on its PE Ratio (18.2x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: ABC is poor value based on its PEG Ratio (2.3x)

Price to Book Ratio

PB vs Industry: ABC is overvalued based on its PB Ratio (57.2x) compared to the US Healthcare industry average (2.6x).

Future Growth

How is AmerisourceBergen forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABC's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ABC's earnings (7.8% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: ABC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABC's revenue (5.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: ABC's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ABC's Return on Equity is forecast to be very high in 3 years time (70.2%).

Past Performance

How has AmerisourceBergen performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABC has high quality earnings.

Growing Profit Margin: ABC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have declined by 25.4% per year over the past 5 years.

Accelerating Growth: ABC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ABC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (8.8%).

Return on Equity

High ROE: Whilst ABC's Return on Equity (191.66%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is AmerisourceBergen's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABC's short term assets ($39.4B) do not cover its short term liabilities ($42.8B).

Long Term Liabilities: ABC's short term assets ($39.4B) exceed its long term liabilities ($13.6B).

Debt to Equity History and Analysis

Debt Level: ABC's net debt to equity ratio (385.8%) is considered high.

Reducing Debt: ABC's debt to equity ratio has increased from 175.8% to 712.6% over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (51.8%).

Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (13.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ABC's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: ABC's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: ABC's dividends per share have been stable in the past 10 years.

Growing Dividend: ABC's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.7%), ABC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13.5%), ABC's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure

CEO

Steve Collis (60 yo)

11.5yrs

Tenure

US$14,873,815

Compensation

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 respectively. Previously, Mr. Collis served...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD14.87M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ABC's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: ABC's board of directors are seasoned and experienced ( 11.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ABC insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30