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 71 industry peers in the Biotechnology industry. While 1ABBV belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1ABBV is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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 3.14%, 1ABBV belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
1ABBV has a better Return On Equity (127.46%) than 100.00% of its industry peers.
The Return On Invested Capital of 1ABBV (13.34%) is better than 90.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ABBV is in line with the industry average of 14.15%.
| 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
Looking at the Profit Margin, with a value of 7.52%, 1ABBV belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ABBV has declined.
Looking at the Operating Margin, with a value of 29.28%, 1ABBV belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ABBV has declined.
1ABBV has a Gross Margin of 69.99%. This is in the better half of the industry: 1ABBV outperforms 69.01% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1ABBV is creating some value.
The number of shares outstanding for 1ABBV remains at a similar level compared to 1 year ago.
1ABBV has more shares outstanding than it did 5 years ago.
1ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
1ABBV has an Altman-Z score of 2.14. This is not the best score and indicates that 1ABBV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.14, 1ABBV is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
1ABBV has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as 1ABBV would need 3.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.77, 1ABBV belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
A Debt/Equity ratio of 18.15 is on the high side and indicates that 1ABBV has dependencies on debt financing.
1ABBV has a Debt to Equity ratio of 18.15. This is in the lower half of the industry: 1ABBV underperforms 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.38
WACC9.66%
2.3 Liquidity
A Current Ratio of 0.66 indicates that 1ABBV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, 1ABBV is doing worse than 76.06% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.55, 1ABBV is doing worse than 74.65% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
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
Based on estimates for the next years, 1ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
1ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue Next Year6.23%
Revenue Next 2Y7.12%
Revenue Next 3Y7.02%
Revenue Next 5Y6.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
1ABBV is valuated rather expensively with a Price/Earnings ratio of 18.65.
Based on the Price/Earnings ratio, 1ABBV is valued cheaper than 87.32% of the companies in the same industry.
1ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
The Price/Forward Earnings ratio is 15.15, which indicates a correct valuation of 1ABBV.
Based on the Price/Forward Earnings ratio, 1ABBV is valued cheaper than 87.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ABBV is valued cheaper than 80.28% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1ABBV is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 15.89 |
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.
1ABBV's earnings are expected to grow with 15.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)7.43
EPS Next 2Y18.35%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
1ABBV has a Yearly Dividend Yield of 3.79%. Purely for dividend investing, there may be better candidates out there.
1ABBV's Dividend Yield is rather good when compared to the industry average which is at 9.62. 1ABBV pays more dividend than 97.18% of the companies in the same industry.
1ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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 260.15% 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.
DP260.15%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
BIT:1ABBV (4/28/2025, 7:00:00 PM)
166.2
+15.4 (+10.21%)
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 Cap294.00B
Analysts80.61
Price Target198.76 (19.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend5.5
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)-1.11%
PT rev (3m)0.92%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-9.06%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 15.15 | ||
| P/S | 5.93 | ||
| P/FCF | 18.73 | ||
| P/OCF | 17.76 | ||
| P/B | 100.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)8.91
EY5.36%
EPS(NY)10.97
Fwd EY6.6%
FCF(TTM)8.88
FCFY5.34%
OCF(TTM)9.36
OCFY5.63%
SpS28.04
BVpS1.65
TBVpS-45.64
PEG (NY)0.81
PEG (5Y)7.43
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 | 2.14 |
F-Score6
WACC9.66%
ROIC/WACC1.38
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 Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%5.6%
Revenue Next Year6.23%
Revenue Next 2Y7.12%
Revenue Next 3Y7.02%
Revenue Next 5Y6.41%
EBIT growth 1Y-0.34%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year26.56%
EBIT Next 3Y15.91%
EBIT Next 5Y10.36%
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%