#1
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AmerisourceBergen (ABC) my analysis
I purchase ABC on a on going basis it is a wholesale drug distributor and has a market cap of 6.5 billion.
The Numbers Trailing P/E 13.9 3 year EPS avg P/E 19 [img]/images/graemlins/confused.gif[/img] 5 year EPS growth 26.5% [img]/images/graemlins/smile.gif[/img] year-- EPS-- Dividend--- ROE ---Operating CF 2001--2.10--- 0 ----------4% --- (-45) (millions) 2002--3.16----.10 --------10% ---- 535 2003--3.89 ---.10 --------11% ----- 354 Other Issues [img]/images/graemlins/diamond.gif[/img] Drugs and related health care is expected to grow long term as population ages [img]/images/graemlins/diamond.gif[/img] Made recent 15.9 million acqusition and has made 2 this year and a few others in past years. This could be a sign of problems. the acquisitions have been small in nature. [img]/images/graemlins/diamond.gif[/img]Future dividend is estimated to be .12 per share [img]/images/graemlins/diamond.gif[/img] Changing regulatory environment is a risk [img]/images/graemlins/diamond.gif[/img] Lost major customer (VA)in may. Management expects to return to 15% growth after may 2005 [img]/images/graemlins/diamond.gif[/img] debt rating was recently upgraded to investment grade A couple of questions. What do you think of the company? would you buy? How is my analysis? Am I missing anything? should I be looking at anything else as well? |
#2
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Re: AmerisourceBergen (ABC) my analysis
I left out a couple of things
P/CF 10.8 P/BV 1.54 Debt/Total Capital 0.2 % owned by institutions 86.7% I like the price/book value numbers and the debt/capital seem very reasonable. The price cash flow isn't bad either. However the 86.7% owned by institutions could be somewhat problematic at least short term as is could result in a large downward swings. |
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