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 67 industry peers in the Biotechnology industry. 4AB scores excellent on profitability, but there are concerns on its financial health. 4AB is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year 4AB was profitable.
In the past year 4AB had a positive cash flow from operations.
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's Return On Assets of 3.05% is amongst the best of the industry. 4AB outperforms 80.60% of its industry peers.
4AB's Return On Equity of 292.61% is amongst the best of the industry. 4AB outperforms 100.00% of its industry peers.
The Return On Invested Capital of 4AB (13.43%) is better than 89.55% of its industry peers.
4AB had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 12.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROIC | 13.43% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
1.3 Margins
The Profit Margin of 4AB (7.24%) is better than 82.09% of its industry peers.
In the last couple of years the Profit Margin of 4AB has declined.
4AB's Operating Margin of 30.43% is amongst the best of the industry. 4AB outperforms 89.55% of its industry peers.
In the last couple of years the Operating Margin of 4AB has declined.
4AB has a Gross Margin of 70.69%. This is in the better half of the industry: 4AB outperforms 68.66% of its industry peers.
In the last couple of years the Gross Margin of 4AB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% |
OM growth 3Y-5.46%
OM growth 5Y-6.07%
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 just above the Cost of Capital (WACC), so 4AB is still creating some value.
4AB has about the same amout of shares outstanding than it did 1 year ago.
4AB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 4AB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that 4AB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.21, 4AB is doing good in the industry, outperforming 67.16% of the companies in the same industry.
4AB has a debt to FCF ratio of 4.54. This is a neutral value as 4AB would need 4.54 years to pay back of all of its debts.
4AB has a Debt to FCF ratio of 4.54. This is amongst the best in the industry. 4AB outperforms 85.07% of its industry peers.
A Debt/Equity ratio of 46.56 is on the high side and indicates that 4AB has dependencies on debt financing.
4AB has a Debt to Equity ratio of 46.56. This is in the lower half of the industry: 4AB underperforms 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.44
WACC9.34%
2.3 Liquidity
4AB has a Current Ratio of 0.76. This is a bad value and indicates that 4AB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.76, 4AB is not doing good in the industry: 77.61% of the companies in the same industry are doing better.
4AB has a Quick Ratio of 0.76. 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 has a Quick ratio of 0.64. This is in the lower half of the industry: 4AB underperforms 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
4AB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.30%.
4AB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
Looking at the last year, 4AB shows a small growth in Revenue. The Revenue has grown by 5.45% in the last year.
Measured over the past years, 4AB shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
3.2 Future
The Earnings Per Share is expected to grow by 13.01% 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 6.55% on average per year.
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
4AB is valuated rather expensively with a Price/Earnings ratio of 18.75.
4AB's Price/Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 86.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, 4AB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.46, the valuation of 4AB can be described as correct.
4AB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 94.03% of the companies in the same industry.
4AB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
82.09% of the companies in the same industry are more expensive than 4AB, based on the Enterprise Value to EBITDA ratio.
82.09% 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 | 22.1 | ||
| EV/EBITDA | 15.85 |
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.
The decent profitability rating of 4AB may justify a higher PE ratio.
4AB's earnings are expected to grow with 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)7.47
EPS Next 2Y18.9%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
4AB has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 14.28, 4AB pays a better dividend. On top of this 4AB pays more dividend than 97.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 4AB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
269.03% of the earnings are spent on dividend by 4AB. This is not a sustainable payout ratio.
The dividend of 4AB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.03%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
FRA:4AB (7/11/2025, 7:00:00 PM)
164.4
-2.8 (-1.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap290.40B
Analysts78.82
Price Target188.78 (14.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend5.31
Dividend Growth(5Y)7.72%
DP269.03%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.02%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.84%
Min EPS beat(4)0.02%
Max EPS beat(4)1.28%
EPS beat(8)7
Avg EPS beat(8)0.85%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.82%
PT rev (1m)-1.69%
PT rev (3m)-6.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 13.46 | ||
| P/S | 5.93 | ||
| P/FCF | 22.1 | ||
| P/OCF | 20.73 | ||
| P/B | 239.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.85 |
EPS(TTM)8.77
EY5.33%
EPS(NY)12.22
Fwd EY7.43%
FCF(TTM)7.44
FCFY4.52%
OCF(TTM)7.93
OCFY4.82%
SpS27.74
BVpS0.69
TBVpS-44.65
PEG (NY)0.8
PEG (5Y)7.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROCE | 17.5% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 565.94% | ||
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% | ||
| FCFM | 26.82% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
ROICexc(3y)15.06%
ROICexc(5y)13.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.46%
OM growth 3Y-5.46%
OM growth 5Y-6.07%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 12.17% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 370.28% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.21 |
F-Score6
WACC9.34%
ROIC/WACC1.44
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)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.05%
EBIT Next 3Y14.64%
EBIT Next 5Y10.77%
FCF growth 1Y-34.59%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-32.31%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%