Will AmerisourceBergen (NYSE:ABC) slip in December?
 | By Gabriel Shpitalnik | Macroaxis Story |
AmerisourceBergen is generating 0.0543% of daily returns assuming volatility of 1.5209% on return distribution over 60 days investment horizon. As many adventurous traders are excited about healthcare space, it is only fair to go over the risk of shorting AmerisourceBergen based on its current volatility spike. We will evaluate if the latest AmerisourceBergen price volatility suggests a bounce in December. AmerisourceBergen's very low volatility may have no significant impact on the stock's value as we estimate AmerisourceBergen as currently fairly valued. The real value, based on our calculations, is getting close to 105.95 per share.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
AmerisourceBergen has roughly 3.42 B in cash with 1.58 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 16.75. Volatility is a rate at which the price of AmerisourceBergen or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of AmerisourceBergen may increase or decrease. In other words, similar to AmerisourceBergen's beta indicator, it measures the risk of AmerisourceBergen and helps estimate the fluctuations that may happen in a short period of time. So if prices of AmerisourceBergen fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is AmerisourceBergen's Liquidity
AmerisourceBergen financial leverage refers to using borrowed capital as a funding source to finance AmerisourceBergen ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AmerisourceBergen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AmerisourceBergen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AmerisourceBergen's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AmerisourceBergen's total debt and its cash.
Breaking down AmerisourceBergen Further
AmerisourceBergen reported the last year's revenue of 186.29 B. Total Income to common stockholders was 1.57 B with profit before taxes, overhead, and interest of 4.99 B.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of AmerisourceBergen. Please refer to our Terms of Use for any information regarding our disclosure principles.