Facts You Need to Understand AmerisourceBergen Stock

Now trading at a price of $168.21, AmerisourceBergen has moved 0.8% so far today.

AmerisourceBergen returned gains of 10.6% last year, with its stock price reaching a high of $174.63 and a low of $135.14. Over the same period, the stock outperformed the S&P 500 index by 11.0%. More recently, the company's 50-day average price was $159.65. AmerisourceBergen Corporation sources and distributes pharmaceutical products. Based in Conshohocken, PA, the large-cap Health Care company has 39,000 full time employees. AmerisourceBergen has offered a 1.1% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2019-09-30 2020-09-30 2021-09-30 2022-09-30
Revenue (MM) $179,589 $189,894 $213,989 $238,587
Revenue Growth n/a 5.74% 12.69% 11.5%
Gross Margins 2.9% 2.7% 3.2% 3.5%
Gross Margins Growth n/a -6.9% 18.52% 9.37%
Operating Margins 1.1% 1.1% 1.3% 1.2%
Operating Margins Growth n/a 0.0% 18.18% -7.69%
Net Margins 0.48% -1.8% 0.72% 0.71%
Net Margins Growth n/a -475.0% 140.0% -1.39%
Earnings Per Share $4.04 -$16.65 $7.39 $8.24
EPS Growth n/a -512.13% 144.38% 11.5%
Diluted Shares (MM) 212 205 208 202
Free Cash Flow (MM) $2,034 $1,837 $2,228 $2,207
FCF Growth n/a -9.66% 21.28% -0.97%
Capital Expenditures (MM) -$310 -$370 -$438 -$496
Net Debt / EBITDA 0.5 0.1 1.42 0.74

Lacks the Data to Calculate Its Graham Number but Has an Elevated P/E Ratio:

AmerisourceBergen has a trailing twelve month P/E ratio of 19.4, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $12.53, the company has a forward P/E ratio of 12.7. According to the 25.4% compound average growth rate of AmerisourceBergen's historical and projected earnings per share, the company's PEG ratio is 0.76. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.6%. On this basis, the company's PEG ratio is 1.83. This suggests that these shares are overvalued.

AmerisourceBergen Has an Average Rating of Buy:

The 15 analysts following AmerisourceBergen have set target prices ranging from $170.0 to $205.0 per share, for an average of $184.4 with a buy rating. As of April 2023, the company is trading -13.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.

AmerisourceBergen has an average amount of shares sold short because 2.6% of the company's shares are sold short. Institutions own 77.9% of the company's shares, and the insider ownership rate stands at 16.96%, suggesting a large amount of insider shareholders. The largest shareholder is the Vanguard Group, Inc., whose 10% stake in the company is worth $3,422,180,719.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.