NYSE:ABC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and fair value.


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


Market Performance


7 Day Return

-0.5%

ABC

3.2%

US Healthcare

0.4%

US Market


1 Year Return

1.4%

ABC

-4.5%

US Healthcare

11.4%

US Market

Return vs Industry: ABC exceeded the US Healthcare industry which returned -4.5% over the past year.

Return vs Market: ABC underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

ABCIndustryMarket
7 Day-0.5%3.2%0.4%
30 Day2.1%4.5%0.3%
90 Day-0.3%0.2%-1.2%
1 Year3.3%1.4%-2.9%-4.5%13.9%11.4%
3 Year13.9%7.9%38.2%31.8%47.2%37.6%
5 Year16.5%7.4%60.1%49.3%62.4%44.6%

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?

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABC ($85.65) is trading below our estimate of fair value ($152.13)

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 (18.9x) compared to the Healthcare industry average (20.8x).

PE vs Market: ABC is poor value based on its PE Ratio (18.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ABC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ABC is overvalued based on its PB Ratio (6x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABC's forecast earnings growth (11% per year) is above the savings rate (2.7%).

Earnings vs Market: ABC's earnings (11% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ABC's revenue (5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ABC's revenue (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 high in 3 years time (33.2%)


Next Steps

Past Performance

How has AmerisourceBergen performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have grown significantly by 29.6% 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 (-11.5%) over the past year, making it difficult to compare to the Healthcare industry average (5.6%).


Return on Equity

High ROE: Whilst ABC's Return on Equity (29.47%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ABC's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: ABC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AmerisourceBergen's financial position?


Financial Position Analysis

Short Term Liabilities: ABC's short term assets ($27.4B) do not cover its short term liabilities ($28.8B)

Long Term Liabilities: ABC's short term assets (27.4B) exceeds its long term liabilities (6.6B)


Debt to Equity History and Analysis

Debt Level: ABC's debt to equity ratio (145%) is considered high

Reducing Debt: ABC's debt to equity ratio has increased from 100.5% to 145% over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (51.9%).

Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (10.8x 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 6.1x debt).


Next Steps

Dividend

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

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABC's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ABC's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 reasonably low payout ratio (34.9%), ABC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABC's dividends in 3 years are forecast to be well covered by earnings (20.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Steve Collis (58yo)

8.3yrs

Tenure

US$11,514,115

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 ($USD11.51M) is about average for companies of similar size in the US market ($USD11.17M).

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


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ABC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

66yo

Average Age

Experienced Board: ABC's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$94428 Mar 19
James Cleary
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares12
Max PriceUS$81.20
SellUS$48228 Mar 19
James Cleary
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares6
Max PriceUS$80.30
BuyUS$155,04006 Mar 19
James Cleary
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares2,000
Max PriceUS$77.52

Ownership Breakdown


Management Team

  • Steve Collis (58yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: US$11.51m
  • Gina Clark (62yo)

    Executive VP and Chief Communications & Administration Officer

    • Tenure: 2.3yrs
  • Jim Cleary (56yo)

    CFO & Executive VP

    • Tenure: 0.9yrs
    • Compensation: US$3.11m
  • Jack Quinn

    VP & Corporate Treasurer

    • Tenure: 0yrs
  • John Chou (63yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$3.57m
  • Robert Mauch (52yo)

    Executive VP & Group President

    • Tenure: 4.7yrs
    • Compensation: US$3.41m
  • Silvana Battaglia

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Laz Krikorian (54yo)

    Senior VP & Corporate Controller

    • Tenure: 7.8yrs
  • Bennett Murphy

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Leslie Donato

    Executive VP & Chief Strategy Officer

    • Tenure: 0.2yrs

Board Members

  • Dick Gochnauer (70yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$235.02k
  • Mike Long (60yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$245.06k
  • D. Durcan (58yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$225.02k
  • Lon Greenberg (69yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$245.02k
  • Kathi Hyle (60yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$230.04k
  • Steve Collis (58yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: US$11.51m
  • Jane Henney (72yo)

    Lead Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$280.04k
  • Ornella Barra (66yo)

    Director

    • Tenure: 4.8yrs
  • Henry McGee (66yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$260.46k

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$17.843b
  • Shares outstanding: 208.33m
  • 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

Biography

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.