ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe - FRA:4AB - US00287Y1091 - Common Stock
196 EUR
-2.6 (-1.31%)
Overall 4AB gets a fundamental rating of 5 out of 10. We evaluated 4AB against 76 industry peers in the Biotechnology industry. 4AB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 4AB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 4AB was profitable.
4AB had a positive operating cash flow in the past year.
In the past 5 years 4AB has always been profitable.
In the past 5 years 4AB always reported a positive cash flow from operatings.
1.2 Ratios
4AB has a Return On Assets of 2.71%. This is in the better half of the industry: 4AB outperforms 73.68% of its industry peers.
4AB has a better Return On Invested Capital (13.81%) than 88.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 4AB is in line with the industry average of 13.32%.
The 3 year average ROIC (13.67%) for 4AB is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROIC | 13.81% |
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
4AB has a Profit Margin of 6.38%. This is in the better half of the industry: 4AB outperforms 77.63% of its industry peers.
4AB's Profit Margin has declined in the last couple of years.
4AB has a Operating Margin of 31.27%. This is amongst the best in the industry. 4AB outperforms 88.16% of its industry peers.
In the last couple of years the Operating Margin of 4AB has declined.
The Gross Margin of 4AB (70.93%) is better than 63.16% of its industry peers.
4AB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% |
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) just above the Cost of Capital (WACC), 4AB is creating some value.
The number of shares outstanding for 4AB remains at a similar level compared to 1 year ago.
4AB has more shares outstanding than it did 5 years ago.
4AB has a worse debt/assets ratio than last year.
2.2 Solvency
4AB has an Altman-Z score of 2.41. This is not the best score and indicates that 4AB is in the grey zone with still only limited risk for bankruptcy at the moment.
4AB's Altman-Z score of 2.41 is fine compared to the rest of the industry. 4AB outperforms 63.16% of its industry peers.
4AB has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as 4AB would need 3.86 years to pay back of all of its debts.
4AB's Debt to FCF ratio of 3.86 is fine compared to the rest of the industry. 4AB outperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.53
WACC9.05%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 4AB may have some problems paying its short term obligations.
With a Current ratio value of 0.74, 4AB is not doing good in the industry: 77.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that 4AB may have some problems paying its short term obligations.
The Quick ratio of 4AB (0.61) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
4AB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 6.05% 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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
3.2 Future
The Earnings Per Share is expected to grow by 13.59% on average over the next years. This is quite good.
Based on estimates for the next years, 4AB will show a small growth in Revenue. The Revenue will grow by 7.22% on average per year.
EPS Next Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
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
Based on the Price/Earnings ratio of 21.47, the valuation of 4AB can be described as rather expensive.
77.63% of the companies in the same industry are more expensive than 4AB, based on the Price/Earnings ratio.
4AB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
4AB is valuated correctly with a Price/Forward Earnings ratio of 15.62.
84.21% of the companies in the same industry are more expensive than 4AB, based on the Price/Forward Earnings ratio.
4AB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
4AB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 4AB is cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 4AB is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 4AB may justify a higher PE ratio.
A more expensive valuation may be justified as 4AB's earnings are expected to grow with 16.82% in the coming years.
PEG (NY)1.01
PEG (5Y)8.55
EPS Next 2Y19.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, 4AB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.16, 4AB pays a better dividend. On top of this 4AB pays more dividend than 96.05% of the companies listed in the same industry.
4AB's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of 4AB is nicely growing with an annual growth rate of 7.72%!
Dividend Growth(5Y)7.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
304.54% of the earnings are spent on dividend by 4AB. This is not a sustainable payout ratio.
4AB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP304.54%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
FRA:4AB (10/23/2025, 7:00:00 PM)
196
-2.6 (-1.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap346.25B
Revenue(TTM)58.33B
Net Income(TTM)3.72B
Analysts79.46
Price Target196.55 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend5.35
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.04%
Min EPS beat(2)0.95%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.75%
Min EPS beat(4)0.02%
Max EPS beat(4)1.14%
EPS beat(8)7
Avg EPS beat(8)0.76%
EPS beat(12)9
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)0.4%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)3.45%
PT rev (3m)4.12%
EPS NQ rev (1m)-15.29%
EPS NQ rev (3m)-13.85%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 15.62 | ||
| P/S | 6.88 | ||
| P/FCF | 22.01 | ||
| P/OCF | 20.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.35 |
EPS(TTM)9.13
EY4.66%
EPS(NY)12.55
Fwd EY6.4%
FCF(TTM)8.91
FCFY4.54%
OCF(TTM)9.42
OCFY4.8%
SpS28.48
BVpS-0.09
TBVpS-45.34
PEG (NY)1.01
PEG (5Y)8.55
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROCE | 18.72% | ||
| ROIC | 13.81% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 370.81% | ||
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% | ||
| FCFM | 31.27% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.68%
ROICexc(3y)15.06%
ROICexc(5y)13.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.27%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.87%
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%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 12.62% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.74% | ||
| Profit Quality | 489.9% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.41 |
F-Score6
WACC9.05%
ROIC/WACC1.53
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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
EPS Next Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.27%
FCF growth 1Y-26.45%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-24.5%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%