August 6, 2018

ABC – Market expectations are for declines in Uniform ROA, but management is confident about recent acquisitions, core business outperformance, and customer renewals


  • AmerisourceBergen Corporation (ABC:USA)currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 12.9x Uniform P/E, implying bearish expectations for the firm. However, management is confident about their acquisition of H.D. Smith, strong core business performance, and customer renewals
  • Specifically, management is confident that their acquisition of H.D. Smith is a strong fit with their distribution business. Additionally, they are confident that their core business outperformance will offset headwinds from their temporarily closed Memphis facility. Moreover, they are confident in their Kiosks Take Back initiative with Walgreens and their core customer renewals

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