NYSE:ABC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with moderate growth potential.


Similar Companies

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.


Market Performance


7 Day Return

0.6%

ABC

-6.0%

US Healthcare

-4.2%

US Market


1 Year Return

12.1%

ABC

7.0%

US Healthcare

14.0%

US Market

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.


Shareholder returns

ABCIndustryMarket
7 Day0.6%-6.0%-4.2%
30 Day6.8%-2.9%-1.8%
90 Day8.1%0.5%2.6%
1 Year14.3%12.1%8.4%7.0%16.3%14.0%
3 Year9.3%3.5%40.5%34.2%43.2%34.0%
5 Year0.1%-7.9%51.9%41.5%65.9%47.6%

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

Valuation

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

49.3%

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).


Next Steps

Future Growth

How is AmerisourceBergen forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.0%

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%)


Next Steps

Past Performance

How has AmerisourceBergen performed over the past 5 years?

21.9%

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


Next Steps

Financial Health

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).


Balance Sheet

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).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.8%

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).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Steve Collis (58yo)

8.6yrs

Tenure

US$11,309,930

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. 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.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Collis
Chairman8.6yrsUS$11.31m0.069% $13.5m
James Cleary
Executive VP & CFO1.3yrsUS$3.45m0.0053% $1.0m
Gina Clark
Executive VP and Chief Communications & Administration Officer2.7yrsUS$2.37m0.0090% $1.8m
John Chou
Executive VP2.7yrsUS$3.51m0.026% $5.1m
Robert Mauch
Executive VP & Group President5yrsUS$3.54m0.011% $2.2m
Lazarus Krikorian
Senior VP5.2yrsno data0.0055% $1.1m
Bennett Murphy
Senior Vice President of Investor Relations0yrsno datano data
Kathy Gaddes
Executive VP & Chief Compliance Officer1.3yrsno data0.0034% $654.8k
Silvana Battaglia
Executive VP & Chief Human Resources Officer1.1yrsno data0.000070% $13.7k
Leslie Donato
Executive VP & Chief Strategy Officer0.5yrsno datano data

2.7yrs

Average Tenure

56yo

Average Age

Experienced Management: ABC's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Collis
Chairman8.6yrsUS$11.31m0.069% $13.5m
Richard Gochnauer
Independent Director11.4yrsUS$295.07k0.0060% $1.2m
Michael Long
Independent Director13.8yrsUS$300.07k0.0053% $1.0m
D. Durcan
Independent Director4.4yrsUS$281.32k0.0014% $263.9k
Lon Greenberg
Independent Director6.8yrsUS$298.75k0.0055% $1.1m
Kathleen Hyle
Independent Director9.8yrsUS$281.32k0.0054% $1.0m
Jane Henney
Lead Independent Director3.9yrsUS$332.58k0.0081% $1.6m
Dennis Nally
Independent Director0.08yrsno data0.000070% $13.7k
Ornella Barra
Director5.1yrsno datano data
Henry McGee
Independent Director15.3yrsUS$305.95k0.0068% $1.3m

5.9yrs

Average Tenure

66yo

Average Age

Experienced Board: ABC's board of directors are considered experienced (5.9 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.


Top Shareholders

Company Information

AmerisourceBergen Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • AmerisourceBergen Corporation
  • 1300 Morris Drive
  • Chesterbrook
  • Pennsylvania
  • 19087
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABCNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1995
ABGDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1995
0HF3LSE (London Stock Exchange)YesCommon SharesGBUSDApr 1995
A1MB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:50
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.