As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is AmerisourceBergen Corp. (NYSE: ABC).
AmerisourceBergen is a leading global third-party logistics provider engaged in wholesale pharmaceutical sourcing and distribution of specialty, brand-name, and generic pharmaceuticals and related services to acute-care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, physician practices, dialysis clinics, and other healthcare customers. By acquiring smaller companies, management has attained the ability to transport biopharmaceuticals, distribute veterinary pharmaceuticals and vaccines, and provide inventory and reimbursement consulting services to providers.
A quick look at the share price history for AmerisourceBergen (below) over the past twelve months shows that the price is up 11.29%. Here’s why the company is undervalued.
Summary
Market Cap: $21.67 Billion
Enterprise Value: $20.75 Billion
Operating Earnings
Operating Earnings: $2.21 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 9.39
Free Cash Flow (TTM)
Free Cash Flow: $2.6 Billion
FCF/EV Yield
FCF/EV Yield: 12.5%
Other Indicators
Piotroski F-Score: 6
Altman Z-Score: 4.19
Beneish M-Score: -2.25
Shareholder Yield
Shareholder Yield: 2%
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