ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe - FRA:4AB - US00287Y1091 - Common Stock
187 EUR
+4.2 (+2.3%)
We assign a fundamental rating of 5 out of 10 to 4AB. 4AB was compared to 75 industry peers in the Biotechnology industry. 4AB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 4AB may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years 4AB had a positive operating cash flow.
1.2 Ratios
4AB has a better Return On Assets (2.71%) than 73.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.81%, 4AB belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 4AB is in line with the industry average of 13.78%.
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
With a decent Profit Margin value of 6.38%, 4AB is doing good in the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 4AB has declined.
4AB's Operating Margin of 31.27% is amongst the best of the industry. 4AB outperforms 86.67% of its industry peers.
4AB's Operating Margin has declined in the last couple of years.
The Gross Margin of 4AB (70.93%) is better than 64.00% 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
4AB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 4AB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 4AB has more shares outstanding
4AB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that 4AB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, 4AB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of 4AB is 3.86, which is a good value as it means it would take 4AB, 3.86 years of fcf income to pay off all of its debts.
4AB has a Debt to FCF ratio of 3.86. This is in the better half of the industry: 4AB outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.49
WACC9.26%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 4AB may have some problems paying its short term obligations.
The Current ratio of 4AB (0.74) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.61 indicates that 4AB may have some problems paying its short term obligations.
4AB has a Quick ratio of 0.61. This is amonst the worse of the industry: 4AB underperforms 81.33% 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.
4AB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
4AB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
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
4AB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.02% yearly.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue Next Year8.23%
Revenue Next 2Y8.56%
Revenue Next 3Y8.13%
Revenue Next 5Y7%
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
With a Price/Earnings ratio of 20.85, 4AB is valued on the expensive side.
Based on the Price/Earnings ratio, 4AB is valued cheaper than 82.67% of the companies in the same industry.
4AB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.22, the valuation of 4AB can be described as correct.
Based on the Price/Forward Earnings ratio, 4AB is valued cheaper than 84.00% of the companies in the same industry.
4AB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4AB is valued a bit cheaper than 80.00% of the companies in the same industry.
81.33% of the companies in the same industry are more expensive than 4AB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.38 | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 16.65% in the coming years.
PEG (NY)0.98
PEG (5Y)8.3
EPS Next 2Y19.74%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
4AB has a Yearly Dividend Yield of 2.98%.
4AB's Dividend Yield is rather good when compared to the industry average which is at 17.12. 4AB pays more dividend than 96.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 4AB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of 4AB grows each year by 7.72%, which is quite nice.
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 2Y19.74%
EPS Next 3Y16.65%
FRA:4AB (9/17/2025, 7:00:00 PM)
187
+4.2 (+2.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.78%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap330.35B
Analysts78.92
Price Target190 (1.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend5.33
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)0.84%
PT rev (3m)-0.14%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 15.22 | ||
| P/S | 6.69 | ||
| P/FCF | 21.38 | ||
| P/OCF | 20.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.59 |
EPS(TTM)8.97
EY4.8%
EPS(NY)12.29
Fwd EY6.57%
FCF(TTM)8.74
FCFY4.68%
OCF(TTM)9.24
OCFY4.94%
SpS27.96
BVpS-0.09
TBVpS-44.52
PEG (NY)0.98
PEG (5Y)8.3
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 2.32 |
F-Score6
WACC9.26%
ROIC/WACC1.49
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 Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.23%
Revenue Next 2Y8.56%
Revenue Next 3Y8.13%
Revenue Next 5Y7%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year19.96%
EBIT Next 3Y14.99%
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%