AmerisourceBergen Corp. (NYSE:ABC)

The analysis of the financial ratios over the observed periods reveals several notable trends and fluctuations.

Price to Earnings (P/E) Ratio

The P/E ratio data commences from December 31, 2016, with missing values initially. Beginning at 47.54, the ratio experiences a substantial decline to low double digits by December 31, 2017, decreasing to 11.36. Subsequently, there is a gradual recovery and moderate fluctuations between approximately 14.79 and 21.14 until year-end 2019. The ratio spikes sharply to 28.18 at this point but then drops again, hitting a trough of 11.41 in the first quarter of 2020. From mid-2020 onward, the ratio stabilizes mostly between 15 and 22, indicating relative market consistency in earnings valuation.

Price to Operating Profit (P/OP) Ratio

Starting measurements appear from December 31, 2016, with intermediate missing data. Initially, the ratio rises from 16.34 to a peak of 21.65 by mid-2017, then declines to a low near 11.71 by early 2018. It then rebounds somewhat, oscillating between 15 and 20 for roughly two years before a downward trend emerges around 2021. The P/OP decreases to around 10.93 by early 2022, indicating potentially increased operating profits relative to price or market adjustments, followed by mild recovery through mid-2023, ending near 16.69.

Price to Sales (P/S) Ratio

The P/S ratio shows limited data before December 31, 2016, but thereafter maintains a relatively narrow range between 0.09 and 0.15 across all periods. Early fluctuations hover between 0.10 and 0.13, demonstrating stability in sales valuation relative to market price. A slight upward trend is noticeable post-2020, with values reaching 0.15 by June 2023, possibly reflecting improved sales expectations or valuation adjustment by investors.

Price to Book Value (P/BV) Ratio

The P/BV ratio starts at 8.96 at the end of 2016 and generally declines to around 5.03 by March 2020, indicating either a rise in book value or a decreasing market price relative to book. However, post-March 2020 data reflects highly irregular and extreme values, such as 687.20 and 128.44, which are atypical and suggest either a reporting anomaly or extraordinary market conditions. Towards mid and late 2022, data is inconsistent or missing, with some more moderate values appearing in 2023 around 56.42 to 121.59, which remain elevated compared to early data. This volatility suggests significant distortion or one-off factors impacting book value or price measurements during this timeframe.

Overall, the financial ratios indicate some market volatility especially around the 2019-2020 period, likely influenced by broader economic or industry-specific events. The P/E and P/OP ratios show recovery and stabilization after initial sharp movements. The P/S ratio maintains relative stability with a modest upward drift. The P/BV ratio's erratic behavior warrants further investigation to clarify the causes behind the extreme fluctuations observed in the recent periods.

Share Price Trend

The share price exhibited fluctuation over the observed periods, starting at $87.28 at the end of 2016 and experiencing a decline throughout early 2017 to a low near $79.46 in September 2017. A recovery phase followed with values varying between roughly $83 and $92 through late 2017 and most of 2018. The share price then showed a gradual upward trend from 2019 into 2020, surpassing $100 by mid-2020. After a notable increase from late 2020 into 2021, the share price reached a peak of approximately $136.08 at the end of 2021. The price then experienced additional volatility, going as high as $191.43 in mid-2023 with intermittent declines, but generally maintaining a higher valuation compared to earlier years.

Earnings per Share (EPS) Variation

EPS data was unavailable prior to late 2017 when values began at 1.67 and rose to a peak of 7.83 by the end of 2017. The EPS remained within a range of approximately 4 to 7.8 during 2018 and early 2019, before a severe downturn occurred in late 2019 through 2021, with EPS turning negative and reaching lows around -18.24. This negative trend reversed starting in late 2021, with EPS recovering to positive territory again by 2022 and maintaining values between 7.4 and 8.89 through mid-2023, suggesting a significant recovery in profitability after the prior financial distress.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio fluctuated considerably over the available periods. Early readings in 2017 showed elevated P/E ratios exceeding 20, peaking at about 47.54, indicating relatively high valuation compared to earnings at that time. The ratio generally trended downward through late 2017 into 2018, reaching a low near 11.36, reflective of improved earnings or adjusted market price. However, the P/E increased again through 2019 and early 2020, reaching around 28.18. Missing data in 2020 and 2021 coincides with the period of negative earnings, when P/E ratios are typically not meaningful. P/E ratios resumed publication in 2022, stabilizing between roughly 15.6 and 22.9, consistent with normalized positive earnings and a market price that generally supports those earnings.

Overall Insights

The company experienced a period of considerable volatility in both earnings and market valuation. The strong performance in share price post-2020, despite the earlier negative earnings period, indicates investor confidence in the recovery. The negative EPS from 2019 to 2021 suggests operational or market challenges during that interval, but the subsequent return to positive earnings and stable P/E ratios reflects improved financial health. The share price trends, combined with EPS and P/E data, imply recovery and growth phases interspersed with volatility, emphasizing the importance of monitoring ongoing performance metrics closely.

The analysis of the quarterly financial data reveals notable trends in share price, operating profit per share, and the price-to-operating profit ratio (P/OP) for the observed periods.

Share Price (US$)

The share price demonstrated considerable variability throughout the periods, initially ranging between approximately $79 and $92 from December 2016 through December 2018. A decline was observed towards early 2019, dropping to the mid-$70s and subsequently recovering to near $89 by the end of 2019. Starting in 2020, the share price displayed a marked upward trend, despite some fluctuations amidst the pandemic-related period, rising from about $88 at the beginning of 2020 to a peak exceeding $191 in June 2023. This represents a significant appreciation over the span analyzed, indicating strong market confidence or improved business prospects over the latter years.

Operating Profit Per Share (US$)

Data for operating profit per share begins in the first quarter of 2017 with values around $4.86, showing moderate variation with peaks reaching approximately $7.12 in early 2019. However, a sharp decline occurred starting from the last quarter of 2019 through the end of 2020, with values becoming negative and reaching lows near -$25. This indicates a period of substantial operating losses, likely reflecting extraordinary challenges or restructuring impacts during that time. Following this decline, the period from early 2021 onward reveals a recovery trend where operating profit per share returned to positive territory, stabilizing between about $10.55 and $12.45. The recovery and stabilization suggest the company succeeded in overcoming the prior negative operating environment.

Price to Operating Profit Ratio (P/OP, ratio)

The P/OP ratio, available from the first quarter of 2017, displayed fluctuation consistent with the respective trends in share price and operating profit per share. Initially, the ratio ranged approximately from 11.7 to 21.6, reflecting variable market valuation relative to earnings. During the negative operating profit period (late 2019 through 2020), data is missing, indicative of difficulties in calculating a meaningful ratio during losses. Post-recovery (from 2021 onward), the ratio stabilized between roughly 10.9 and 16.7, suggesting a normalized valuation consistent with renewed profitability. The observed increase in share price relative to operating profit in recent years resulted in moderately higher valuation multiples.

Overall, the data indicates a period of operational and financial challenges leading to significant losses around 2019–2020, followed by a strong recovery in operating profitability and share price appreciation. The company’s market valuation, as measured by the P/OP ratio, has returned to more typical levels after a hiatus during the loss period, implying restored investor confidence and operational stability.

Share Price Trend

The share price exhibited fluctuations throughout the analyzed periods. Initially, values hovered in the mid-80s to low 90s US dollars from late 2016 through 2017, with some moderate decreases seen in mid-2017. Entering 2018 and 2019, share prices mostly remained within the 77 to 91 US$ range, showing modest variability but no clear growth trajectory. Starting from early 2020, there was a noticeable upward trend, with the price rising from approximately 88.74 US$ in March 2020 to a peak exceeding 191 US$ by June 2023. This significant increase suggests strengthened market confidence or improved company performance in recent years.

Sales Per Share

Sales per share data is available from December 2017 onward and indicates a consistent upward trajectory. Starting near 702 US$ at the end of 2017, sales per share increased steadily each quarter. By June 2023, the figure reached approximately 1,258 US$, reflecting sustained revenue growth relative to the number of outstanding shares. The steady quarterly increments suggest persistent operational expansion or strengthening in sales capability over the period.

Price-to-Sales (P/S) Ratio

The P/S ratio, based on available data from late 2017 forward, shows general stability with minor fluctuations across quarters. Initially around 0.11 to 0.13, the ratio underwent occasional slight decreases but remained within the 0.09 to 0.11 range until 2019. From 2020 onward, there was a gradual increase, rising up to approximately 0.15 by mid-2023. This increase, coupled with both share price and sales growth, suggests that share prices are rising somewhat faster relative to sales per share, potentially indicating improved market valuation or investor expectations for future growth.

Summary of Observations

Overall, the data portrays a company experiencing steady sales growth per share and a share price that remained relatively stable for several years before entering a period of significant appreciation in value starting in 2020. The gradual increase in the P/S ratio during the recent years supports the view that the market has begun valuing the stock more richly relative to its sales. This combination points to strengthening financial health or increased investor optimism regarding the company's future prospects.

Share Price Trend

The share price exhibited fluctuations over the observed periods, beginning at $87.28 at the end of 2016 and generally oscillating within the $79 to $92 range through 2017 and 2018. A noticeable upward trend commenced in early 2020, with the share price rising from approximately $88.74 in December 2019 to a peak of $191.43 by June 2023. This represents more than a twofold increase over roughly three and a half years, indicating substantial market appreciation during this recent interval.

Book Value Per Share (BVPS) Pattern

Book value per share showed an initial gradual increase from $9.74 at the end of 2016 up to a high of $18.89 in March 2020. However, following this peak, BVPS declined sharply into negative territory during 2020 and 2021, reaching lows near -$4.99 and -$3.41, suggesting significant balance sheet challenges or write-downs during this period. From late 2021 through mid-2023, the BVPS demonstrated signs of recovery, moving back into positive figures, reaching $3.39 by June 2023.

Price-to-Book Value (P/BV) Ratio Observations

The P/BV ratio reflected the interplay between share price and book value fluctuations. Initially, the ratio decreased from a high around 8.96 at the end of 2016 to approximately 5.03 by early 2020, consistent with the rising BVPS and relatively stable share price. However, from 2020 onward, the ratio became highly volatile and inconsistent, with some extremely elevated values such as 687.2 and 128.44 during 2021 and 2022. This volatility coincides with the negative BVPS values, which cause distortions in the ratio’s calculation. The elevated ratios during the recovery phase post-2021 suggest that the market price remained substantially higher than the book value, reflecting possibly strong investor confidence or intangible factors not captured in book value.

Overall Insights

The company’s market valuation strengthened considerably starting around 2020, as reflected in the rising share price despite disruptions in accounting book value. The negative trend and subsequent recovery in BVPS imply significant balance sheet adjustments possibly related to extraordinary events or accounting revaluations. The extreme volatility in P/BV ratios during periods of negative book value highlights the limitations of this metric under such conditions. Overall, the financial metrics suggest a period of financial stress followed by market optimism and partial balance sheet recovery.