Amerisourcebergen Stock Story


USD 149.91  0.38  0.25%   

It looks like Cardinal Health will be up for a correction way faster as its share price whent up 1.22% today to Amerisourcebergen's 1.2016%. As many rational traders are trying to avoid healthcare space, it makes sense to go over Amerisourcebergen Corp a little further and understand how it stands against Cardinal Health and other similar entities. We are going to analyze some of the competitive aspects of both Amerisourcebergen and Cardinal.
Published over three months ago
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Is Cardinal more volatile than Amerisourcebergen Corp (NYSE:ABC)?

By analyzing existing fundamental drivers between Amerisourcebergen and Cardinal, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Cardinal with a short position in Amerisourcebergen. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amerisourcebergen has an asset utilization ratio of 636.16 percent. This suggests that the company is making $6.36 for each dollar of assets. An increasing asset utilization means that Amerisourcebergen Corp is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Amerisourcebergen's Liquidity

Amerisourcebergen financial leverage refers to using borrowed capital as a funding source to finance Amerisourcebergen Corp 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. Please check the breakdown between Amerisourcebergen's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Amerisourcebergen, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Steven Collis of 11480 shares of Amerisourcebergen subject to Rule 16b-3

Legal trades by Amerisourcebergen insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Amerisourcebergen insider trading alert for exercise of non-qualified stock option (right to buy) by Steven Collis, Chairman President & CEO, on 11th of August 2022. This event was filed by Amerisourcebergen Corp with SEC on 2022-08-11. Statement of changes in beneficial ownership - SEC Form 4. Steven Collis currently serves as ceo and president director and member of executive committee of Amerisourcebergen Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Amerisourcebergen Further

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Amerisourcebergen revenue. Based on the latest financial disclosure, Amerisourcebergen Corp reported 213.99 B of revenue. This is much higher than that of the Healthcare sector and 168.45% higher than that of the Medical Distribution industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Cardinal Health we see revenue of 167.37 B, which is 109.96% higher than that of the Medical Distribution

Amerisourcebergen213.99 Billion
Sector7.63 Billion
Cardinal167.37 Billion
214 B
167.4 B

Amerisourcebergen may start a collapse in June

The maximum drawdown is down to 7.68 as of today. Amerisourcebergen Corp has relatively low volatility with skewness of -0.3 and kurtosis of 1.7. 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.

Amerisourcebergen Implied Volatility

Amerisourcebergen's implied volatility exposes the market's sentiment of Amerisourcebergen Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amerisourcebergen's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Amerisourcebergen stock will not fluctuate a lot when Amerisourcebergen's options are near their expiration.

Our Bottom Line On Amerisourcebergen Corp

Whereas some firms 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. The bottom line, as of the 4th of May 2022, we believe that at this point, Amerisourcebergen is undervalued with very low chance of financial distress within the next 2 years. Our current advice on the company is Strong Buy.

Editorial 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 Ellen Johnson do not own shares of Amerisourcebergen Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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