ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABBV - US00287Y1091 - Common Stock
185 EUR
-3 (-1.6%)
We assign a fundamental rating of 5 out of 10 to 1ABBV. 1ABBV was compared to 86 industry peers in the Biotechnology industry. 1ABBV has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1ABBV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1ABBV was profitable.
- 1ABBV had a positive operating cash flow in the past year.
- Each year in the past 5 years 1ABBV has been profitable.
- 1ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ABBV has a Return On Assets of 1.75%. This is in the better half of the industry: 1ABBV outperforms 75.00% of its industry peers.
- 1ABBV has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. 1ABBV outperforms 94.32% of its industry peers.
- 1ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is above the industry average of 11.58%.
- 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
- The Profit Margin of 1ABBV (3.94%) is better than 77.27% of its industry peers.
- 1ABBV's Profit Margin has declined in the last couple of years.
- 1ABBV has a Operating Margin of 33.05%. This is amongst the best in the industry. 1ABBV outperforms 88.64% of its industry peers.
- In the last couple of years the Operating Margin of 1ABBV has declined.
- 1ABBV has a Gross Margin of 71.16%. This is in the better half of the industry: 1ABBV outperforms 61.36% of its industry peers.
- In the last couple of years the Gross Margin of 1ABBV has declined.
| 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.
- 1ABBV has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1ABBV has been increased compared to 5 years ago.
- The debt/assets ratio for 1ABBV is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.37 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 2.37. This is in the better half of the industry: 1ABBV outperforms 68.18% 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.
- 1ABBV has a Debt to FCF ratio of 3.49. This is amongst the best in the industry. 1ABBV outperforms 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
- A Current Ratio of 0.72 indicates that 1ABBV may have some problems paying its short term obligations.
- With a Current ratio value of 0.72, 1ABBV is not doing good in the industry: 77.27% 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 77.27% 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.
- The Revenue has been growing slightly by 7.40% in the past year.
- The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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
- Based on estimates for the next years, 1ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.67% on average per year.
- 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
- 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 22.98, 1ABBV is valued on the expensive side.
- 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.
- 1ABBV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.96 indicates a correct valuation of 1ABBV.
- 1ABBV's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 92.05% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ABBV is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, 1ABBV is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| 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 an expensive 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 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.
- 1ABBV's Dividend Yield is rather good when compared to the industry average which is at 0.71. 1ABBV pays more dividend than 96.59% of the companies in the same industry.
- 1ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 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%.