ABB LTD-REG (1ABB.MI) Stock Fundamental Analysis
BIT:1ABB - Euronext Milan - CH0012221716 - Common Stock - Currency: EUR
Overall 1ABB gets a fundamental rating of 7 out of 10. We evaluated 1ABB against 53 industry peers in the Electrical Equipment industry. 1ABB gets an excellent profitability rating and is at the same time showing great financial health properties. 1ABB is not valued too expensively and it also shows a decent growth rate. These ratings would make 1ABB suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1ABB was profitable.
1ABB had a positive operating cash flow in the past year.
Each year in the past 5 years 1ABB has been profitable.
Each year in the past 5 years 1ABB had a positive operating cash flow.
1.2 Ratios
1ABB's Return On Assets of 9.75% is amongst the best of the industry. 1ABB outperforms 92.45% of its industry peers.
1ABB's Return On Equity of 27.16% is amongst the best of the industry. 1ABB outperforms 92.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.84%, 1ABB belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ABB is significantly above the industry average of 8.14%.
The 3 year average ROIC (14.75%) for 1ABB is below the current ROIC(15.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.75% | ||
| ROE | 27.16% | ||
| ROIC | 15.84% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
1.3 Margins
1ABB has a Profit Margin of 11.98%. This is amongst the best in the industry. 1ABB outperforms 92.45% of its industry peers.
1ABB's Profit Margin has improved in the last couple of years.
The Operating Margin of 1ABB (15.58%) is better than 88.68% of its industry peers.
1ABB's Operating Margin has improved in the last couple of years.
1ABB's Gross Margin of 37.49% is in line compared to the rest of the industry. 1ABB outperforms 54.72% of its industry peers.
1ABB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 11.98% | ||
| GM | 37.49% |
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ABB is creating value.
The number of shares outstanding for 1ABB remains at a similar level compared to 1 year ago.
1ABB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ABB has been reduced compared to a year ago.
2.2 Solvency
1ABB has an Altman-Z score of 4.31. This indicates that 1ABB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.31, 1ABB belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
The Debt to FCF ratio of 1ABB is 1.81, which is an excellent value as it means it would take 1ABB, only 1.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ABB (1.81) is better than 88.68% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that 1ABB is not too dependend on debt financing.
The Debt to Equity ratio of 1ABB (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 4.31 |
ROIC/WACC3.19
WACC4.96%
2.3 Liquidity
1ABB has a Current Ratio of 1.37. This is a normal value and indicates that 1ABB is financially healthy and should not expect problems in meeting its short term obligations.
1ABB has a Current ratio (1.37) which is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that 1ABB may have some problems paying its short term obligations.
1ABB has a Quick ratio of 0.99. This is comparable to the rest of the industry: 1ABB outperforms 56.60% of its industry peers.
The current and quick ratio evaluation for 1ABB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
1ABB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.46%, which is quite good.
The Earnings Per Share has been growing by 11.16% on average over the past years. This is quite good.
Looking at the last year, 1ABB shows a small growth in Revenue. The Revenue has grown by 1.91% in the last year.
1ABB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)14.46%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%22.45%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%0.83%
3.2 Future
1ABB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.88% yearly.
1ABB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y11.88%
Revenue Next Year4.47%
Revenue Next 2Y4.89%
Revenue Next 3Y5.18%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.81, which indicates a rather expensive current valuation of 1ABB.
67.92% of the companies in the same industry are more expensive than 1ABB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1ABB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.76, 1ABB is valued on the expensive side.
1ABB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1ABB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ABB is on the same level as its industry peers.
62.26% of the companies in the same industry are more expensive than 1ABB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.69 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1ABB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)2.04
EPS Next 2Y13.02%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
1ABB has a Yearly Dividend Yield of 2.13%.
1ABB's Dividend Yield is a higher than the industry average which is at 2.98.
1ABB's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of 1ABB has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ABB pays out 44.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1ABB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.96%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
BIT:1ABB (4/24/2025, 7:00:00 PM)
44.7
+0.59 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.64%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap83.13B
Analysts65.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.85
Dividend Growth(5Y)4.13%
DP44.96%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.13%
Min EPS beat(2)-21.59%
Max EPS beat(2)-0.67%
EPS beat(4)1
Avg EPS beat(4)-5.49%
Min EPS beat(4)-21.59%
Max EPS beat(4)0.59%
EPS beat(8)3
Avg EPS beat(8)1.64%
EPS beat(12)7
Avg EPS beat(12)9.73%
EPS beat(16)10
Avg EPS beat(16)5.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-4.05%
Max Revenue beat(2)0.51%
Revenue beat(4)1
Avg Revenue beat(4)-3.08%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)-1.93%
Revenue beat(12)4
Avg Revenue beat(12)-2.27%
Revenue beat(16)7
Avg Revenue beat(16)-1.91%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 18.76 | ||
| P/S | 2.88 | ||
| P/FCF | 24.69 | ||
| P/OCF | 20.23 | ||
| P/B | 6.53 | ||
| P/tB | 32.78 | ||
| EV/EBITDA | 15.9 |
EPS(TTM)1.96
EY4.38%
EPS(NY)2.38
Fwd EY5.33%
FCF(TTM)1.81
FCFY4.05%
OCF(TTM)2.21
OCFY4.94%
SpS15.53
BVpS6.85
TBVpS1.36
PEG (NY)1.39
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.75% | ||
| ROE | 27.16% | ||
| ROCE | 20.36% | ||
| ROIC | 15.84% | ||
| ROICexc | 20.59% | ||
| ROICexgc | 51.22% | ||
| OM | 15.58% | ||
| PM (TTM) | 11.98% | ||
| GM | 37.49% | ||
| FCFM | 11.66% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
ROICexc(3y)19.32%
ROICexc(5y)16.24%
ROICexgc(3y)54.6%
ROICexgc(5y)45.35%
ROCE(3y)19.26%
ROCE(5y)16.22%
ROICexcg growth 3Y10.23%
ROICexcg growth 5Y26.05%
ROICexc growth 3Y12.7%
ROICexc growth 5Y25.08%
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
F-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.81 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 105.36% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 21.24 | ||
| Cash Conversion | 78.97% | ||
| Profit Quality | 97.33% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 4.31 |
F-Score8
WACC4.96%
ROIC/WACC3.19
Cap/Depr(3y)99.23%
Cap/Depr(5y)93.07%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.61%
Profit Quality(3y)70.85%
Profit Quality(5y)57.43%
High Growth Momentum
Growth
EPS 1Y (TTM)14.46%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%22.45%
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y11.88%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%0.83%
Revenue Next Year4.47%
Revenue Next 2Y4.89%
Revenue Next 3Y5.18%
Revenue Next 5Y3.4%
EBIT growth 1Y2.18%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year25.72%
EBIT Next 3Y13.33%
EBIT Next 5Y12.52%
FCF growth 1Y8.81%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y8.97%
OCF growth 3Y11.97%
OCF growth 5Y14.99%