ABBVIE INC (4AB.DE) Stock Fundamental Analysis
FRA:4AB - Deutsche Boerse Ag - US00287Y1091 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 4AB. 4AB was compared to 72 industry peers in the Biotechnology industry. 4AB has an excellent profitability rating, but there are concerns on its financial health. 4AB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year 4AB was profitable.
4AB had a positive operating cash flow in the past year.
Of the past 5 years 4AB 4 years were profitable.
Of the past 5 years 4AB 4 years had a positive operating cash flow.
1.2 Ratios
4AB has a Return On Assets of 3.54%. This is amongst the best in the industry. 4AB outperforms 85.94% of its industry peers.
The Return On Equity of 4AB (84.23%) is better than 100.00% of its industry peers.
4AB's Return On Invested Capital of 12.75% is amongst the best of the industry. 4AB outperforms 96.88% of its industry peers.
4AB had an Average Return On Invested Capital over the past 3 years of 14.65%. This is above the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROIC | 12.75% |
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%
1.3 Margins
4AB's Profit Margin of 9.15% is amongst the best of the industry. 4AB outperforms 87.50% of its industry peers.
4AB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.79%, 4AB belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
In the last couple of years the Operating Margin of 4AB has declined.
4AB has a Gross Margin of 67.25%. This is in the better half of the industry: 4AB outperforms 65.63% of its industry peers.
In the last couple of years the Gross Margin of 4AB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% |
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 4AB is still creating some value.
There is no outstanding debt for 4AB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.03 indicates that 4AB is not a great score, but indicates only limited risk for bankruptcy at the moment.
4AB's Altman-Z score of 2.03 is fine compared to the rest of the industry. 4AB outperforms 65.63% of its industry peers.
The Debt to FCF ratio of 4AB is 4.55, which is a neutral value as it means it would take 4AB, 4.55 years of fcf income to pay off all of its debts.
4AB's Debt to FCF ratio of 4.55 is amongst the best of the industry. 4AB outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 9.70 is on the high side and indicates that 4AB has dependencies on debt financing.
4AB's Debt to Equity ratio of 9.70 is on the low side compared to the rest of the industry. 4AB is outperformed by 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.23
WACC10.37%
2.3 Liquidity
A Current Ratio of 0.65 indicates that 4AB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.65, 4AB is doing worse than 85.94% of the companies in the same industry.
4AB has a Quick Ratio of 0.65. This is a bad value and indicates that 4AB is not financially healthy enough and could expect problems in meeting its short term obligations.
4AB's Quick ratio of 0.54 is on the low side compared to the rest of the industry. 4AB is outperformed by 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for 4AB have decreased by -8.91% in the last year.
4AB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
EPS 1Y (TTM)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.6%
3.2 Future
The Earnings Per Share is expected to grow by 12.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.94% on average over the next years.
EPS Next Y22.65%
EPS Next 2Y17.74%
EPS Next 3Y14.84%
EPS Next 5Y12.19%
Revenue Next Year5.63%
Revenue Next 2Y6.56%
Revenue Next 3Y6.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.69 indicates a rather expensive valuation of 4AB.
Compared to the rest of the industry, the Price/Earnings ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. 4AB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.23, 4AB is valued correctly.
85.94% of the companies in the same industry are more expensive than 4AB, based on the Price/Forward Earnings ratio.
4AB is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4AB is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 4AB is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.39 | ||
| EV/EBITDA | 16.72 |
4.3 Compensation for Growth
4AB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
4AB has a very decent profitability rating, which may justify a higher PE ratio.
4AB's earnings are expected to grow with 14.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)7.44
EPS Next 2Y17.74%
EPS Next 3Y14.84%
5. Dividend
5.1 Amount
4AB has a Yearly Dividend Yield of 3.73%.
4AB's Dividend Yield is rather good when compared to the industry average which is at 4.52. 4AB pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 4AB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
On average, the dividend of 4AB grows each year by 10.41%, which is quite nice.
Dividend Growth(5Y)10.41%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
214.51% of the earnings are spent on dividend by 4AB. This is not a sustainable payout ratio.
The dividend of 4AB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP214.51%
EPS Next 2Y17.74%
EPS Next 3Y14.84%
ABBVIE INC
FRA:4AB (2/4/2025, 7:00:00 PM)
182.96
-0.24 (-0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.38%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap323.32B
Analysts79.44
Price Target196.73 (7.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend5.96
Dividend Growth(5Y)10.41%
DP214.51%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.9%
Max EPS beat(2)1.28%
EPS beat(4)3
Avg EPS beat(4)0.69%
Min EPS beat(4)-1.14%
Max EPS beat(4)1.73%
EPS beat(8)5
Avg EPS beat(8)0.37%
EPS beat(12)7
Avg EPS beat(12)0.25%
EPS beat(16)10
Avg EPS beat(16)0.31%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)1.08%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-0.94%
PT rev (1m)-1.73%
PT rev (3m)3.84%
EPS NQ rev (1m)-29.44%
EPS NQ rev (3m)-29.32%
EPS NY rev (1m)-7.86%
EPS NY rev (3m)-7.39%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 15.23 | ||
| P/S | 6.02 | ||
| P/FCF | 21.39 | ||
| P/OCF | 20.24 | ||
| P/B | 55.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.72 |
EPS(TTM)9.79
EY5.35%
EPS(NY)12.01
Fwd EY6.56%
FCF(TTM)8.55
FCFY4.68%
OCF(TTM)9.04
OCFY4.94%
SpS30.41
BVpS3.3
TBVpS-52.51
PEG (NY)0.83
PEG (5Y)7.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROCE | 15.38% | ||
| ROIC | 12.75% | ||
| ROICexc | 13.75% | ||
| ROICexgc | N/A | ||
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% | ||
| FCFM | 28.13% |
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%
ROICexc(3y)16.31%
ROICexc(5y)18.27%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.66%
ROCE(5y)16.37%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y19.58%
ROICexc growth 5Y-9.23%
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 10.62% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.4% | ||
| Profit Quality | 307.48% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.03 |
F-Score5
WACC10.37%
ROIC/WACC1.23
Cap/Depr(3y)8.79%
Cap/Depr(5y)13.22%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.49%
Profit Quality(3y)285.09%
Profit Quality(5y)277.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
EPS Next Y22.65%
EPS Next 2Y17.74%
EPS Next 3Y14.84%
EPS Next 5Y12.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.6%
Revenue Next Year5.63%
Revenue Next 2Y6.56%
Revenue Next 3Y6.22%
Revenue Next 5Y5.94%
EBIT growth 1Y-18.54%
EBIT growth 3Y8.2%
EBIT growth 5Y6.52%
EBIT Next Year7.33%
EBIT Next 3Y9.53%
EBIT Next 5Y9.2%
FCF growth 1Y-28.73%
FCF growth 3Y9.53%
FCF growth 5Y11.52%
OCF growth 1Y-26.91%
OCF growth 3Y9.1%
OCF growth 5Y11.21%