Home Sectors Healthcare Present Valuation: AmerisourceBergen Corporation (NYSE: ABC)

Present Valuation: AmerisourceBergen Corporation (NYSE: ABC)


AmerisourceBergen Corporation trades as part of the healthcare sector and is in the medical distribution industry. The company CEO is Steven H. Collis. AmerisourceBergen Corp is a pharmaceutical services company. It provides drug distribution and related healthcare services and solutions to pharmacy, physician, and manufacturer customers based in the United States and Canada.

Previous Intraday Trading Performance:

The ABC stock showed a previous change of 0.84% with an open at 79.49 and a close of 80.18. It reached an intraday high of 80.59 and a low of 79.49.

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The stock has a market cap of $16.9b with 211.1m shares outstanding, of which the float is 206.9m shares. Trading volume reached 2,303,643 shares compared to its average volume of 1,488,928 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, AmerisourceBergen Corporation shares returned 2.86% and in the past 30 trading days it returned -3.83%. Over three months, it changed 4.61%. In one year it has changed -16.16% and within that year its 52-week high was 96.34 and its 52-week low was 69.36. ABC stock is 15.60% above its 52 Week Low.

Our calculations show a 200 day moving average of 84.51 and a 50 day moving average of 80.57. Currently ABC stock is trading -5.13% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 7.53 that ended on 30th of September 2018, which according to the previous close, that is a PE of 10.65. Based on 9 analyst estimates, the consensus EPS for the next quarter is 1.44. The TTM EPS is 6.48, which comes to a TTM PE of 12.37.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.60
09-30-2018:  1.45
06-30-2018:  1.54
03-31-2018:  1.94

The dividend per share is currently 1.60, which is a dividend yield of 2.00%. Also, the payout ratio is 24.69%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 128.16, which means it is possibly undervalued and has a margin of safety of 37.44%

Indicators to Watch:

Based on the latest filings, there is 1.90% of insider ownership and 104.50% of institutional ownership. Short-interest is 6,654,511, which is 3.15% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.50. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.12

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 40.19%, return on assets is 3.15%, profit margin is 0.66%, price-to-sales is 0.10 and price-to-book is 5.55.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.