AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally.
Established dividend payer with moderate growth potential.
Share Price & News
How has AmerisourceBergen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ABC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ABC exceeded the US Healthcare industry which returned 7% over the past year.
Return vs Market: ABC underperformed the US Market which returned 14% over the past year.
Price Volatility Vs. Market
How volatile is AmerisourceBergen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StShould You Investigate AmerisourceBergen Corporation (NYSE:ABC) At US$85.56?
1 month ago | Simply Wall StIs AmerisourceBergen (NYSE:ABC) A Risky Investment?
1 month ago | Simply Wall StWe Think AmerisourceBergen's (NYSE:ABC) Statutory Profit Might Understate Its Earnings Potential
Is AmerisourceBergen undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABC ($94.93) is trading below our estimate of fair value ($187.1)
Significantly Below Fair Value: ABC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ABC is poor value based on its PE Ratio (30.5x) compared to the Healthcare industry average (28.4x).
PE vs Market: ABC is poor value based on its PE Ratio (30.5x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: ABC is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: ABC is overvalued based on its PB Ratio (6.6x) compared to the US Healthcare industry average (3.1x).
How is AmerisourceBergen forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABC's forecast earnings growth (15% per year) is above the savings rate (1.7%).
Earnings vs Market: ABC's earnings (15% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: ABC's earnings are forecast to grow, but not significantly.
Revenue vs Market: ABC's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ABC's revenue (5.2% 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 high in 3 years time (35.4%)
How has AmerisourceBergen performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABC has a large one-off loss of $956.3M impacting its December 31 2019 financial results.
Growing Profit Margin: ABC's current net profit margins (0.4%) are lower than last year (0.7%).
Past Earnings Growth Analysis
Earnings Trend: ABC's earnings have grown significantly by 21.9% per year over the past 5 years.
Accelerating Growth: ABC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ABC had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Healthcare industry average (13.9%).
Return on Equity
High ROE: Whilst ABC's Return on Equity (21.14%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is AmerisourceBergen's financial position?
Financial Position Analysis
Short Term Liabilities: ABC's short term assets ($29.0B) do not cover its short term liabilities ($30.6B).
Long Term Liabilities: ABC's short term assets ($29.0B) exceed its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: ABC's debt to equity ratio (135.8%) is considered high.
Reducing Debt: ABC's debt to equity ratio has increased from 114% to 135.8% over the past 5 years.
Debt Coverage: ABC's debt is well covered by operating cash flow (48.2%).
Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (12.7x coverage).
Inventory Level: ABC has a high level of physical assets or inventory.
Debt Coverage by Assets: ABC's debt is covered by short term assets (assets are 6.9x debt).
What is AmerisourceBergen's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ABC's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.48%).
High Dividend: ABC's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.77%).
Stability and Growth of Payments
Stable Dividend: ABC's dividends per share have been stable in the past 10 years.
Growing Dividend: ABC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.4%), ABC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ABC's dividends in 3 years are forecast to be well covered by earnings (19% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Collis (58yo)
Mr. Steven H. Collis, also known as Steve, has been the Chief Executive Officer and President of AmerisourceBergen Corporation since July 2011 and November 2010. Previously, Mr. Collis served as the Chief ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD11.31M) is about average for companies of similar size in the US market ($USD10.82M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||1.3yrs||US$3.45m||0.0053% $1.0m|
|Executive VP and Chief Communications & Administration Officer||2.7yrs||US$2.37m||0.0090% $1.8m|
|Executive VP||2.7yrs||US$3.51m||0.026% $5.1m|
|Executive VP & Group President||5yrs||US$3.54m||0.011% $2.2m|
|Senior VP||5.2yrs||no data||0.0055% $1.1m|
|Senior Vice President of Investor Relations||0yrs||no data||no data|
|Executive VP & Chief Compliance Officer||1.3yrs||no data||0.0034% $654.8k|
|Executive VP & Chief Human Resources Officer||1.1yrs||no data||0.000070% $13.7k|
|Executive VP & Chief Strategy Officer||0.5yrs||no data||no data|
Experienced Management: ABC's management team is considered experienced (2.7 years average tenure).
|Independent Director||11.4yrs||US$295.07k||0.0060% $1.2m|
|Independent Director||13.8yrs||US$300.07k||0.0053% $1.0m|
|Independent Director||4.4yrs||US$281.32k||0.0014% $263.9k|
|Independent Director||6.8yrs||US$298.75k||0.0055% $1.1m|
|Independent Director||9.8yrs||US$281.32k||0.0054% $1.0m|
|Lead Independent Director||3.9yrs||US$332.58k||0.0081% $1.6m|
|Independent Director||0.08yrs||no data||0.000070% $13.7k|
|Director||5.1yrs||no data||no data|
|Independent Director||15.3yrs||US$305.95k||0.0068% $1.3m|
Experienced Board: ABC's board of directors are considered experienced (5.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AmerisourceBergen Corporation's company bio, employee growth, exchange listings and data sources
- Name: AmerisourceBergen Corporation
- Ticker: ABC
- Exchange: NYSE
- Founded: 1985
- Industry: Health Care Distributors
- Sector: Healthcare
- Market Cap: US$19.545b
- Shares outstanding: 205.89m
- Website: https://www.amerisourcebergen.com
Number of Employees
- AmerisourceBergen Corporation
- 1300 Morris Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ABC||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Apr 1995|
|ABG||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Apr 1995|
|0HF3||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Apr 1995|
|A1MB34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/24 23:50|
|End of Day Share Price||2020/02/24 00:00|
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.