ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABBV - US00287Y1091 - Common Stock
185.2 EUR
+0.2 (+0.11%)
Overall 1ABBV gets a fundamental rating of 5 out of 10. We evaluated 1ABBV 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 decent growth rate and is not valued too expensively.
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.
- 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 74.12% of the companies in the same industry.
- 1ABBV has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. 1ABBV outperforms 91.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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 better Profit Margin (3.94%) than 76.47% of its industry peers.
- 1ABBV's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1ABBV (33.05%) is better than 87.06% 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 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.
- The number of shares outstanding for 1ABBV has been increased compared to 5 years ago.
- Compared to 1 year ago, 1ABBV has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that 1ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1ABBV has a Altman-Z score of 2.41. This is in the better half of the industry: 1ABBV outperforms 70.59% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 3.49, 1ABBV is doing good in the industry, outperforming 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.41 |
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.
- With a Current ratio value of 0.72, 1ABBV is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
- A Quick Ratio of 0.60 indicates that 1ABBV may have some problems paying 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 77.65% 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%.
- 1ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
- The Revenue has been growing slightly by 7.40% 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)-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.
- Based on estimates for the next years, 1ABBV will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
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
- The Price/Earnings ratio is 23.47, which indicates a rather expensive current valuation of 1ABBV.
- 82.35% of the companies in the same industry are more expensive than 1ABBV, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. 1ABBV is around the same levels.
- A Price/Forward Earnings ratio of 15.28 indicates a correct valuation of 1ABBV.
- 1ABBV's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 90.59% of the companies in the same industry.
- 1ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 15.28 |
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 78.82% of the companies listed in the same industry.
- 85.88% of the companies in the same industry are more expensive than 1ABBV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.91 | ||
| EV/EBITDA | 16.13 |
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.
- A more expensive valuation may be justified as 1ABBV's earnings are expected to grow with 17.02% in the coming years.
PEG (NY)271.7
PEG (5Y)9.35
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- 1ABBV has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.70, 1ABBV pays a better dividend. On top of this 1ABBV pays more dividend than 97.65% 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 1.82.
| 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
- 1ABBV pays out 489.69% of its income as dividend. This is not a sustainable payout ratio.
- 1ABBV's earnings are growing more than its dividend. This makes the dividend growth 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 23.47 and the Price/Book (PB) ratio is -148.35.
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%.