ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABBV - US00287Y1091 - Common Stock
185 EUR
-3 (-1.6%)
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 has a correct valuation and a medium 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.
- In the past 5 years 1ABBV has always been profitable.
- 1ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ABBV's Return On Assets of 1.75% is fine compared to the rest of the industry. 1ABBV outperforms 75.00% of its industry peers.
- The Return On Invested Capital of 1ABBV (15.64%) is better than 94.32% 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 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 has a Profit Margin of 3.94%. This is in the better half of the industry: 1ABBV outperforms 77.27% 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 88.64% of its industry peers.
- In the last couple of years the Operating Margin of 1ABBV has declined.
- The Gross Margin of 1ABBV (71.16%) is better than 61.36% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ABBV is creating value.
- The number of shares outstanding for 1ABBV remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1ABBV has been increased compared to 5 years ago.
- 1ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
- 1ABBV has an Altman-Z score of 2.37. 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 2.37, 1ABBV is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- 1ABBV has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as 1ABBV would need 3.49 years to pay back of all of its debts.
- The Debt to FCF ratio of 1ABBV (3.49) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.85
WACC8.44%
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.
- Looking at the Current ratio, with a value of 0.72, 1ABBV is doing worse than 77.27% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.60, 1ABBV is doing worse than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The earnings per share for 1ABBV have decreased strongly by -12.09% in the last year.
- 1ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
- 1ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
- 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)-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
- The Earnings Per Share is expected to grow by 13.67% on average over the next years. This is quite good.
- 1ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
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.
- 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 22.98.
- Compared to the rest of the industry, the Price/Earnings ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 82.95% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1ABBV to the average of the S&P500 Index (27.21), we can say 1ABBV is valued inline with the index average.
- The Price/Forward Earnings ratio is 14.96, which indicates a correct valuation of 1ABBV.
- Based on the Price/Forward Earnings ratio, 1ABBV is valued cheaper than 92.05% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1ABBV to the average of the S&P500 Index (25.98), we can say 1ABBV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
- 1ABBV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1ABBV is cheaper than 79.55% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 86.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.5 | ||
| EV/EBITDA | 15.85 |
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.
- The decent profitability rating of 1ABBV 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)266.01
PEG (5Y)9.15
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.17%, 1ABBV has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.70, 1ABBV pays a better dividend. On top of this 1ABBV pays more dividend than 96.59% of the companies listed in the same industry.
- 1ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
- 489.69% 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.
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 22.98 and the Price/Book (PB) ratio is -145.32.
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%.