Given AmerisourceBergen Corporation growth possibilities , current share price seems to be high as firm might find it difficult to maintain higher growth in long term finally with 57.37 PE ratio AmerisourceBergen Corporation is trading in overbought region .
13.94 forward PE below 57.37 PE fiscal is expected to out grow in subsequent period . Current markets forecast lower earnings for the company , also it is pertinent to acknowledge that present past 12 months price-earnings has been below 13.94 projected price-growth ratio .
Consumer Services sector is staging a rebound at 8738.13 points, comparatively to the broader index, has seen a change of 0.83 Total Money flow for the day ended at $13344.14mn with tick up at $26666.25mn and tick down at $13322.12mn led to up /down ratio of 2.00x. With Tick up down ratio robust at 3.95, MF saw a boost of $13287.33mn.
End of the day trading on Friday, Dec 15 market cap stood at $19477.19 ML and company has been favourites with Institutional investors. Company value continue to stay above its 200 day MA at 9.03%.
Strong management continue to push for growth and has lead to improving 15.70% equity to growth . Firm with increasing 2017-2022 EPS at 8.14%, currently commands higher price levels sustained by growth potential..
If firms quick ratio stays below one for a longer period of time , it may be a concern ., and low current ratio seems to be short term as management sometimes squeeze out near term cash sources to meet its long term outlook ..
Prices appear to lack any clear direction at the movement , however its important to consider that current beta has no implications on prices future volatility, and hitting higher beta 0.98 the stock has been stuck in a consolidation value range .
Firms Operational metrics are trending in the right directionFirm has received revised rating from Market Perform to Outperform after a series of upgrades , however analysts feel that the market is hopping for upside potential without appropriately evaluating risks to growthAmerisourceBergen Corporation is expected to deliver robust revenue and earnings growth, but this might be hard to come by with PEG at 7.05 .
Further considering price ratios , current stock price might not justifies company’s fundamentals , PB is above Services sector average at 9.86. With low CR of 0.9, firm’s current debt and working capital is below comfortable levels , indicating company has low asset sustainability ratio and low operating surplus ratio.
Current net loss per share of -74.00% point to fall in EPS . Reported firms assets to growth seems to understate the company’s profitability by destorting certain items and with returns from assets performance at 1.10% ROA AmerisourceBergen Corporation growth does not seem to stacks up against Services sector.
Trend indicate company is showing showing resistance as stock remains at 29.58% below its 52 Week High . It appears that with prices nearing 52 week high, stocks are taking cues on the short to medium term guidance .