ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
BIT:1ABBV - Euronext Milan - US00287Y1091 - Common Stock - Currency: EUR
1ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Biotechnology industry. 1ABBV scores excellent on profitability, but there are concerns on its financial health. 1ABBV may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
1ABBV had positive earnings in the past year.
1ABBV had a positive operating cash flow in the past year.
Each year in the past 5 years 1ABBV has been profitable.
Each year in the past 5 years 1ABBV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.14%, 1ABBV belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 127.46%, 1ABBV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1ABBV has a Return On Invested Capital of 13.34%. This is amongst the best in the industry. 1ABBV outperforms 93.06% of its industry peers.
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 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROIC | 13.34% |
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
1ABBV has a Profit Margin of 7.52%. This is amongst the best in the industry. 1ABBV outperforms 83.33% of its industry peers.
1ABBV's Profit Margin has declined in the last couple of years.
The Operating Margin of 1ABBV (29.28%) is better than 95.83% 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 69.99%, 1ABBV is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% |
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.
The number of shares outstanding for 1ABBV remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1ABBV has more shares outstanding
The debt/assets ratio for 1ABBV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.31 indicates that 1ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
1ABBV's Altman-Z score of 2.31 is fine compared to the rest of the industry. 1ABBV outperforms 70.83% of its industry peers.
The Debt to FCF ratio of 1ABBV is 3.77, which is a good value as it means it would take 1ABBV, 3.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ABBV (3.77) is better than 87.50% of its industry peers.
1ABBV has a Debt/Equity ratio of 18.15. This is a high value indicating a heavy dependency on external financing.
1ABBV has a worse Debt to Equity ratio (18.15) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.49
WACC8.95%
2.3 Liquidity
1ABBV has a Current Ratio of 0.66. 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 has a Current ratio of 0.66. This is in the lower half of the industry: 1ABBV underperforms 76.39% of its industry peers.
1ABBV has a Quick Ratio of 0.66. 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 Quick ratio of 1ABBV (0.55) is worse than 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
1ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.91%.
Measured over the past 5 years, 1ABBV shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
The Revenue has been growing slightly by 3.71% in the past year.
1ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
EPS 1Y (TTM)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%5.6%
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 12.19% yearly.
The Revenue is expected to grow by 5.94% on average over the next years.
EPS Next Y23.75%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
EPS Next 5Y12.19%
Revenue Next Year6.13%
Revenue Next 2Y7.07%
Revenue Next 3Y7.02%
Revenue Next 5Y5.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.82, 1ABBV is valued on the expensive side.
88.89% of the companies in the same industry are more expensive than 1ABBV, based on the Price/Earnings ratio.
1ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 16.82 indicates a correct valuation of 1ABBV.
Based on the Price/Forward Earnings ratio, 1ABBV is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 80.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1ABBV is valued cheaper than 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.85 | ||
| EV/EBITDA | 17.42 |
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.
The decent profitability rating of 1ABBV may justify a higher PE ratio.
1ABBV's earnings are expected to grow with 16.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)8.29
EPS Next 2Y18.56%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.11%, 1ABBV has a reasonable but not impressive dividend return.
1ABBV's Dividend Yield is rather good when compared to the industry average which is at 3.73. 1ABBV pays more dividend than 97.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of 1ABBV is nicely growing with an annual growth rate of 7.72%!
Dividend Growth(5Y)7.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
260.15% of the earnings are spent on dividend by 1ABBV. This is not a sustainable payout ratio.
1ABBV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP260.15%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
BIT:1ABBV (3/5/2025, 7:00:00 PM)
194
-7.25 (-3.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap342.48B
Analysts80
Price Target201 (3.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend5.75
Dividend Growth(5Y)7.72%
DP260.15%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.46%
Min EPS beat(2)0.02%
Max EPS beat(2)0.9%
EPS beat(4)4
Avg EPS beat(4)0.98%
Min EPS beat(4)0.02%
Max EPS beat(4)1.73%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.2%
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)3
Avg Revenue beat(8)0.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)5.15%
PT rev (3m)2.05%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)0.9%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 16.82 | ||
| P/S | 6.6 | ||
| P/FCF | 20.85 | ||
| P/OCF | 19.77 | ||
| P/B | 111.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.42 |
EPS(TTM)9.32
EY4.8%
EPS(NY)11.54
Fwd EY5.95%
FCF(TTM)9.3
FCFY4.8%
OCF(TTM)9.81
OCFY5.06%
SpS29.39
BVpS1.73
TBVpS-47.84
PEG (NY)0.88
PEG (5Y)8.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROCE | 17.11% | ||
| ROIC | 13.34% | ||
| ROICexc | 14.16% | ||
| ROICexgc | N/A | ||
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% | ||
| FCFM | 31.65% |
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 | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 11.61% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 5.87 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 420.77% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.31 |
F-Score6
WACC8.95%
ROIC/WACC1.49
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)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
EPS Next Y23.75%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
EPS Next 5Y12.19%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%5.6%
Revenue Next Year6.13%
Revenue Next 2Y7.07%
Revenue Next 3Y7.02%
Revenue Next 5Y5.94%
EBIT growth 1Y-0.34%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.95%
EBIT Next 3Y14.72%
EBIT Next 5Y12.86%
FCF growth 1Y-19.17%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-17.66%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%