ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABBV - US00287Y1091 - Common Stock
185.2 EUR
+0.2 (+0.11%)
1ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 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
- In the past year 1ABBV was profitable.
- In the past year 1ABBV had a positive cash flow from operations.
- In the past 5 years 1ABBV has always been profitable.
- In the past 5 years 1ABBV always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.75%, 1ABBV is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.64%, 1ABBV belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
- 1ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 11.71%.
- The last Return On Invested Capital (15.64%) for 1ABBV is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROIC | 15.64% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.68%
1.3 Margins
- 1ABBV's Profit Margin of 3.94% is fine compared to the rest of the industry. 1ABBV outperforms 77.65% of its industry peers.
- 1ABBV's Profit Margin has declined in the last couple of years.
- 1ABBV's Operating Margin of 33.05% is amongst the best of the industry. 1ABBV outperforms 88.24% of its industry peers.
- 1ABBV's Operating Margin has declined in the last couple of years.
- The Gross Margin of 1ABBV (71.16%) is comparable to the rest of the industry.
- 1ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% |
OM growth 3Y-5.46%
OM growth 5Y-6.52%
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ABBV is creating value.
- Compared to 1 year ago, 1ABBV has about the same amount of shares outstanding.
- 1ABBV has more shares outstanding than it did 5 years ago.
- 1ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.39 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 2.39, 1ABBV is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- The Debt to FCF ratio of 1ABBV is 3.49, which is a good value as it means it would take 1ABBV, 3.49 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.49, 1ABBV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.85
WACC8.43%
2.3 Liquidity
- 1ABBV has a Current Ratio of 0.72. This is a bad value and indicates that 1ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1ABBV's Current ratio of 0.72 is on the low side compared to the rest of the industry. 1ABBV is outperformed by 76.47% of its industry peers.
- 1ABBV has a Quick Ratio of 0.72. This is a bad value and indicates that 1ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1ABBV's Quick ratio of 0.60 is on the low side compared to the rest of the industry. 1ABBV is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- 1ABBV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.09%.
- The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
- 1ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
- Measured over the past years, 1ABBV shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
3.2 Future
- 1ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.67% yearly.
- The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y0.09%
EPS Next 2Y19.77%
EPS Next 3Y17.02%
EPS Next 5Y13.67%
Revenue Next Year8.75%
Revenue Next 2Y9.23%
Revenue Next 3Y8.83%
Revenue Next 5Y7.5%
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
- 1ABBV is valuated rather expensively with a Price/Earnings ratio of 23.21.
- 1ABBV's Price/Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 83.53% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1ABBV is valued at the same level.
- Based on the Price/Forward Earnings ratio of 15.10, the valuation of 1ABBV can be described as correct.
- Based on the Price/Forward Earnings ratio, 1ABBV is valued cheaply inside the industry as 91.76% of the companies are valued more expensively.
- 1ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 15.1 |
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 80.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1ABBV is valued cheaper than 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.68 | ||
| EV/EBITDA | 15.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ABBV does not grow enough to justify the current Price/Earnings ratio.
- 1ABBV has a very decent profitability rating, which may justify a higher PE ratio.
- 1ABBV's earnings are expected to grow with 17.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)268.64
PEG (5Y)9.24
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- 1ABBV has a Yearly Dividend Yield of 3.17%.
- 1ABBV's Dividend Yield is rather good when compared to the industry average which is at 0.70. 1ABBV pays more dividend than 97.65% of the companies in the same industry.
- 1ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
- 1ABBV pays out 489.69% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP489.69%
EPS Next 2Y19.77%
EPS Next 3Y17.02%
ABBVIE INC / 1ABBV.MI FAQ
Can you provide the ChartMill fundamental rating for ABBVIE INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1ABBV.MI.
What is the valuation status of ABBVIE INC (1ABBV.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to ABBVIE INC (1ABBV.MI). This can be considered as Fairly Valued.
What is the profitability of 1ABBV stock?
ABBVIE INC (1ABBV.MI) has a profitability rating of 6 / 10.
What is the valuation of ABBVIE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ABBVIE INC (1ABBV.MI) is 23.21 and the Price/Book (PB) ratio is -146.64.
Can you provide the dividend sustainability for 1ABBV stock?
The dividend rating of ABBVIE INC (1ABBV.MI) is 6 / 10 and the dividend payout ratio is 489.69%.