AmerisourceBergen Corp., FCFE calculation

US$ in thousands

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income (loss) attributable to AmerisourceBergen Corporation	1,698,820)	1,539,932)	(3,408,716)	855,365)	1,658,405)	364,484)
Net (income) loss attributable to noncontrolling interests	(32,280)	4,676)	9,158)	(1,230)	(42,513)	—)
Net noncash charges	1,176,210)	754,656)	(662,430)	1,120,690)	(2,415)	672,502)
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures	(139,662)	367,322)	6,269,028)	369,198)	(202,089)	467,152)
Net cash provided by operating activities	2,703,088)	2,666,586)	2,207,040)	2,344,023)	1,411,388)	1,504,138)
Capital expenditures	(496,318)	(438,217)	(369,677)	(310,222)	(336,411)	(466,397)
Proceeds from sale of property and equipment	6,302)	14,439)	36,364)	1,295)	8,100)	—)
Senior notes and other loan borrowings	155,189)	3,166,980)	599,480)	506,948)	1,314,430)	—)
Senior notes and other loan repayments	(1,238,954)	(835,313)	(598,452)	(510,863)	(681,001)	(750,000)
Borrowings under revolving and securitization credit facilities	4,832,605)	4,968,815)	116,946)	640,126)	25,129,704)	9,336,400)
Repayments under revolving and securitization credit facilities	(4,671,943)	(5,083,930)	(149,980)	(769,284)	(25,127,438)	(9,335,953)
Payment of premium on early retirement of debt	—)	—)	(21,448)	—)	(22,348)	—)
Free cash flow to equity (FCFE)	1,289,969)	4,459,360)	1,820,273)	1,902,023)	1,696,424)	288,188)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The analysis of the annual financial data reveals notable trends in cash flow metrics over the six-year period from 2017 to 2022.

Net Cash Provided by Operating Activities: This metric demonstrates an overall upward trend from 2017 to 2022, starting at approximately $1.5 billion in 2017 and ending around $2.7 billion in 2022. There is a marked increase between 2018 and 2019 where the value rose substantially from approximately $1.4 billion to over $2.3 billion, indicating improved operational cash generation. Although there was a slight decline in 2020 compared to 2019, the cash provided increased significantly again in 2021 and maintained a similar high level in 2022.
Free Cash Flow to Equity (FCFE): FCFE exhibits a more volatile pattern relative to operating cash flow. It starts at roughly $288 million in 2017, increases dramatically in 2018 to approximately $1.7 billion, and continues to grow, peaking at about $4.5 billion in 2021. This peak represents a significant surge in the funds available to equity shareholders. However, in 2022, there is a sharp decline to about $1.3 billion, indicating a reduction in free cash flow available to equity holders compared to the previous year. Despite this decline, the 2022 figure remains substantially higher than the values seen in the earlier years of the period.

Overall, the data suggest that the company has steadily improved its operational cash generation capability over the period, with a peak in free cash flow available to equity that occurred in 2021 before falling back in 2022. The variability in FCFE might reflect changes in capital expenditures, financing activities, or other cash movements affecting equity holders' available cash after operating and investing activities.

Download chart

AmerisourceBergen Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	202,174,856
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	1,289,969)
FCFE per share	6.38
Current share price (P)	191.43
Valuation Ratio
P/FCFE	30.00
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	40.00
CVS Health Corp.	7.57
Elevance Health Inc.	7.84
Intuitive Surgical Inc.	146.85
Medtronic PLC	15.08
UnitedHealth Group Inc.	7.76
P/FCFE, Sector
Health Care Equipment & Services	14.55
P/FCFE, Industry
Health Care	18.59

Based on: 10-K (reporting date: 2022-09-30).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

AmerisourceBergen Corp., historical P/FCFE calculation, comparison to benchmarks

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
No. shares of common stock outstanding¹	205,668,628	208,133,361	204,249,747	205,922,186	211,933,493	218,082,051
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	1,289,969)	4,459,360)	1,820,273)	1,902,023)	1,696,424)	288,188)
FCFE per share³	6.27	21.43	8.91	9.24	8.00	1.32
Share price^1, 4	164.71	123.66	101.90	87.81	88.87	79.46
Valuation Ratio
P/FCFE⁵	26.26	5.77	11.43	9.51	11.10	60.13
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	26.11	24.52	38.42	—	—	—
CVS Health Corp.	12.36	21.23	11.93	—	—	—
Elevance Health Inc.	14.26	11.07	7.75	—	—	—
Intuitive Surgical Inc.	89.67	58.39	81.15	—	—	—
Medtronic PLC	19.71	38.91	23.06	—	—	—
UnitedHealth Group Inc.	12.57	20.11	13.93	—	—	—
P/FCFE, Sector
Health Care Equipment & Services	15.91	22.03	17.62	—	—	—
P/FCFE, Industry
Health Care	18.11	18.05	17.25	—	—	—

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,289,969,000 ÷ 205,668,628 = 6.27

⁴ Closing price as at the filing date of AmerisourceBergen Corp. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 164.71 ÷ 6.27 = 26.26

⁶ Click competitor name to see calculations.

The analysis of the financial data over the six-year period reveals notable trends in share price, free cash flow to equity (FCFE) per share, and the price-to-FCFE (P/FCFE) ratio.

Share Price: The share price exhibits a consistent upward trajectory, rising from $79.46 in 2017 to $164.71 in 2022. This represents a growth of approximately 107% over the period. The increase is steady, with only minor fluctuations, suggesting positive market sentiment and potentially improving company performance during these years.
FCFE per Share: The FCFE per share shows greater volatility compared to the share price. Starting at $1.32 in 2017, it experienced a substantial rise to $8.00 in 2018 and continued to increase to $9.24 in 2019. It slightly declined to $8.91 in 2020 but surged dramatically to $21.43 in 2021 before falling considerably to $6.27 in 2022. This variability indicates periods of significant changes in the company's free cash flows available to equity holders, possibly reflecting operational dynamics or capital structure changes.
P/FCFE Ratio: The P/FCFE ratio demonstrates an inverse pattern relative to FCFE per share. It starts very high at 60.13 in 2017, drops sharply to 11.10 in 2018, and continues a declining trend to 9.51 in 2019. It increases slightly to 11.43 in 2020 but falls again to its lowest point at 5.77 in 2021. In 2022, it sharply rises to 26.26. These fluctuations suggest changes in market valuation relative to the underlying free cash flow, with the ratio peaking when FCFE per share is low and declining as FCFE rises.

Overall, the upward movement in share price coupled with fluctuating FCFE per share and corresponding changes in the P/FCFE ratio indicates a complex interplay between market expectations and actual cash flow generation. The significant drop in FCFE per share in 2022, alongside a sharp increase in the P/FCFE ratio, may warrant further investigation into the factors influencing free cash flow and market valuation during that year.

Download chart

AmerisourceBergen Corp. (NYSE:ABC)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical