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Is this Large Market Cap Stock target price reasonable for AmerisourceBergen Corporation (NYSE:ABC)?

The company in question is, AmerisourceBergen Corporation (NYSE:ABC) currently with a stock price of 84.87 (-0.98% today). The market cap for AmerisourceBergen Corporation is 18490.22, and is in the sector Services, and Drugs Wholesale industry. The target price for AmerisourceBergen Corporation is 85.53. Currently AmerisourceBergen Corporation is trading with a P/E of 12.7, and a forward P/E of 14.72. Average volume for AmerisourceBergen Corporation is 2688.86 and so far today it is 757203.

Performance in the last year for AmerisourceBergen Corporation has been -18.99%. For EPS growth, AmerisourceBergen Corporation has seen a growth of -151.30%, and is looking to grow in the next year to 5.80%. More long term stats show that EPS growth has been -17.90% over the last five years and could be 10.56% for the next five years. AmerisourceBergen Corporation has seen sales growth quarter over quarter at 9.30%, with EPS growth quarter over quarter at 215.00%. The 20-day simple moving average is 8.08%, with the 200-day simple moving average coming to -3.62%.

Since the IPO date for AmerisourceBergen Corporation on the 4/4/1995, AmerisourceBergen Corporation has seen performance year to date to be -16.66%. With AmerisourceBergen Corporation trading at 84.87, the dividend yield is 1.59%, and the EPS is 6.75.

So could AmerisourceBergen Corporation, be undervalued? Well as said before P/E is 12.7. The PEG is 1.2, P/S is 0.13 and the P/B is at 8.13. The P/cash is 7.32, with P/free cash flow at 5.54.

AmerisourceBergen Corporation ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.5. This is with long term debt/equity at 1.99, and total debt/equity at 2.05.

In terms of margins, AmerisourceBergen Corporation has a gross margin of 2.80%, an operating margin of 1.10% and a profit margin of 1.10%.Payout ratio for AmerisourceBergen Corporation is 17.50%. Return on assets come to 5.10% with return on investment coming to -0.50%.

Insider ownership for AmerisourceBergen Corporation, is at 0.10% and institutional ownership comes to 83.50%. Outstanding shares are at 215.73. While shares float is 181.11. The float short is currently 5.40%, and short ratio is 3.64.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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