Amerisourcebergen Corp has roughly 6.64
B in cash with 1.66
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 32.33.
Macroaxis provides advice on Amerisourcebergen Corp to complement and cross-verify current
analyst consensus on Amerisourcebergen Corp. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in AmerisourceBergen, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding AmerisourceBergen along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of AmerisourceBergen's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AmerisourceBergen. Your research has to be compared to or analyzed against AmerisourceBergen's peers to derive any actionable benefits. When done correctly, AmerisourceBergen's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in AmerisourceBergen.
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.
AmerisourceBergen Correlation with Peers
Investors in AmerisourceBergen can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AmerisourceBergen. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AmerisourceBergen and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AmerisourceBergen is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of AmerisourceBergen for more details
Breaking down AmerisourceBergen Further
We consider Amerisourcebergen very steady.
Amerisourcebergen Corp secures Sharpe Ratio (or Efficiency) of 0.0702, which signifies that the company had 0.0702% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Amerisourcebergen Corp, which you can use to evaluate the future volatility of the firm. Please confirm Amerisourcebergen Corp
risk adjusted performance of 0.0285, and Mean Deviation of 1.03 to double-check if the risk estimate we provide is consistent with the expected return of 0.0877%.
Over 3 percent rise for Amerisourcebergen. What does it mean for investors?
The mean deviation is down to 1.03 as of today. Amerisourcebergen Corp has relatively low volatility with skewness of -0.79 and kurtosis of 2.9. However, we advise all investors to independently investigate Amerisourcebergen Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Amerisourcebergen's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Amerisourcebergen's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
Whereas many other companies within the medical distribution industry are still a little expensive, even after the recent corrections, Amerisourcebergen may offer a potential longer-term growth to investors. All things considered, as of the 4th of August 2021, our primary 90 days buy-hold-sell advice on the company is
Hold. We believe Amerisourcebergen is currently
fairly valued with
low chance of financial distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of AmerisourceBergen. Please refer to our
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