ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
BIT:1ABBV - Euronext Milan - US00287Y1091 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1ABBV. 1ABBV was compared to 65 industry peers in the Biotechnology industry. While 1ABBV is still in line with the averages on profitability rating, there are concerns on its financial health. 1ABBV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1ABBV had positive earnings in the past year.
In the past year 1ABBV had a positive cash flow from operations.
1ABBV had positive earnings in each of the past 5 years.
1ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.05%, 1ABBV is doing good in the industry, outperforming 76.00% of the companies in the same industry.
The Return On Equity of 1ABBV (292.61%) is better than 98.67% of its industry peers.
With an excellent Return On Invested Capital value of 13.43%, 1ABBV belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ABBV is in line with the industry average of 12.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROIC | 13.43% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
1.3 Margins
With a decent Profit Margin value of 7.24%, 1ABBV is doing good in the industry, outperforming 77.33% of the companies in the same industry.
1ABBV's Profit Margin has declined in the last couple of years.
1ABBV has a better Operating Margin (30.43%) than 86.67% of its industry peers.
1ABBV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 70.69%, 1ABBV is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
1ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% |
OM growth 3Y-5.46%
OM growth 5Y-6.07%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
2. Health
2.1 Basic Checks
1ABBV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1ABBV has about the same amout of shares outstanding than it did 1 year ago.
1ABBV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ABBV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that 1ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.17, 1ABBV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1ABBV has a debt to FCF ratio of 4.54. This is a neutral value as 1ABBV would need 4.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.54, 1ABBV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
1ABBV has a Debt/Equity ratio of 46.56. This is a high value indicating a heavy dependency on external financing.
1ABBV has a Debt to Equity ratio of 46.56. This is in the lower half of the industry: 1ABBV underperforms 74.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.67
WACC8.03%
2.3 Liquidity
1ABBV has a Current Ratio of 0.76. This is a bad value and indicates that 1ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1ABBV (0.76) is worse than 77.33% of its industry peers.
A Quick Ratio of 0.64 indicates that 1ABBV may have some problems paying its short term obligations.
1ABBV's Quick ratio of 0.64 is on the low side compared to the rest of the industry. 1ABBV is outperformed by 78.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for 1ABBV have decreased by -6.30% in the last year.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 5.45% in the past year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
3.2 Future
Based on estimates for the next years, 1ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.01% on average per year.
The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.61 indicates a rather expensive valuation of 1ABBV.
82.67% of the companies in the same industry are more expensive than 1ABBV, based on the Price/Earnings ratio.
1ABBV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of 1ABBV.
1ABBV's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 86.67% of the companies in the same industry.
1ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ABBV indicates a somewhat cheap valuation: 1ABBV is cheaper than 77.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ABBV indicates a somewhat cheap valuation: 1ABBV is cheaper than 77.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 15.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1ABBV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ABBV's earnings are expected to grow with 16.07% in the coming years.
PEG (NY)0.79
PEG (5Y)7.41
EPS Next 2Y18.9%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
1ABBV has a Yearly Dividend Yield of 3.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 12.03, 1ABBV pays a better dividend. On top of this 1ABBV pays more dividend than 97.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
On average, the dividend of 1ABBV grows each year by 7.72%, which is quite nice.
Dividend Growth(5Y)7.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
269.03% of the earnings are spent on dividend by 1ABBV. This is not a sustainable payout ratio.
The dividend of 1ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.03%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
BIT:1ABBV (6/10/2025, 7:00:00 PM)
166
-0.2 (-0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap293.22B
Analysts78.82
Price Target188.08 (13.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend5.42
Dividend Growth(5Y)7.72%
DP269.03%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.02%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.84%
Min EPS beat(4)0.02%
Max EPS beat(4)1.28%
EPS beat(8)7
Avg EPS beat(8)0.85%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.82%
PT rev (1m)-2.17%
PT rev (3m)-6.43%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)4.33%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 13.36 | ||
| P/S | 5.89 | ||
| P/FCF | 21.95 | ||
| P/OCF | 20.59 | ||
| P/B | 237.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.53 |
EPS(TTM)8.92
EY5.37%
EPS(NY)12.42
Fwd EY7.48%
FCF(TTM)7.56
FCFY4.56%
OCF(TTM)8.06
OCFY4.86%
SpS28.2
BVpS0.7
TBVpS-45.4
PEG (NY)0.79
PEG (5Y)7.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROCE | 17.5% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 565.94% | ||
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% | ||
| FCFM | 26.82% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
ROICexc(3y)15.06%
ROICexc(5y)13.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.46%
OM growth 3Y-5.46%
OM growth 5Y-6.07%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 12.17% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 370.28% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.17 |
F-Score6
WACC8.03%
ROIC/WACC1.67
Cap/Depr(3y)9.59%
Cap/Depr(5y)10.06%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.5%
Profit Quality(3y)361.43%
Profit Quality(5y)328.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.58%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.05%
EBIT Next 3Y14.64%
EBIT Next 5Y10.77%
FCF growth 1Y-34.59%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-32.31%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%