ABBVIE INC (4AB.DE) Stock Fundamental Analysis
FRA:4AB - Deutsche Boerse Ag - US00287Y1091 - Common Stock - Currency: EUR
Overall 4AB gets a fundamental rating of 5 out of 10. We evaluated 4AB against 72 industry peers in the Biotechnology industry. 4AB has an excellent profitability rating, but there are concerns on its financial health. 4AB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
4AB had positive earnings in the past year.
In the past year 4AB had a positive cash flow from operations.
4AB had positive earnings in each of the past 5 years.
In the past 5 years 4AB always reported a positive cash flow from operatings.
1.2 Ratios
4AB has a better Return On Assets (3.14%) than 81.94% of its industry peers.
With an excellent Return On Equity value of 127.46%, 4AB belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.34%, 4AB belongs to the best of the industry, outperforming 91.67% 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 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROIC | 13.34% |
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
4AB's Profit Margin of 7.52% is amongst the best of the industry. 4AB outperforms 81.94% 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 29.28%, 4AB belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Operating Margin of 4AB has declined.
Looking at the Gross Margin, with a value of 69.99%, 4AB is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
In the last couple of years the Gross Margin of 4AB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% |
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
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.
The number of shares outstanding for 4AB has been increased compared to 5 years ago.
The debt/assets ratio for 4AB is higher compared to a year ago.
2.2 Solvency
4AB has an Altman-Z score of 2.33. 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 has a better Altman-Z score (2.33) than 72.22% of its industry peers.
The Debt to FCF ratio of 4AB is 3.77, which is a good value as it means it would take 4AB, 3.77 years of fcf income to pay off all of its debts.
4AB has a better Debt to FCF ratio (3.77) than 86.11% of its industry peers.
A Debt/Equity ratio of 18.15 is on the high side and indicates that 4AB has dependencies on debt financing.
The Debt to Equity ratio of 4AB (18.15) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.49
WACC8.93%
2.3 Liquidity
4AB has a Current Ratio of 0.66. 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 Current ratio of 0.66. This is in the lower half of the industry: 4AB underperforms 77.78% of its industry peers.
4AB has a Quick Ratio of 0.66. 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 0.55 is on the low side compared to the rest of the industry. 4AB is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
4AB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.91%.
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 3.71% in the last year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%5.6%
3.2 Future
Based on estimates for the next years, 4AB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.19% on average per year.
Based on estimates for the next years, 4AB will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y23.75%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
EPS Next 5Y12.19%
Revenue Next Year6.13%
Revenue Next 2Y7.07%
Revenue Next 3Y7.02%
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.
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
4AB is valuated rather expensively with a Price/Earnings ratio of 21.07.
Based on the Price/Earnings ratio, 4AB is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 4AB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.02, the valuation of 4AB can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 86.11% of the companies listed in the same industry.
4AB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 4AB indicates a somewhat cheap valuation: 4AB is cheaper than 79.17% of the companies listed in the same industry.
4AB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 4AB is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.11 | ||
| EV/EBITDA | 17.6 |
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.
A more expensive valuation may be justified as 4AB's earnings are expected to grow with 16.15% in the coming years.
PEG (NY)0.89
PEG (5Y)8.39
EPS Next 2Y18.56%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
4AB has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 3.73, 4AB pays a better dividend. On top of this 4AB pays more dividend than 98.61% of the companies listed in the same industry.
4AB's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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
260.15% 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.
DP260.15%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
FRA:4AB (3/7/2025, 7:00:00 PM)
196.38
+2.18 (+1.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap346.68B
Analysts80
Price Target200.78 (2.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend5.75
Dividend Growth(5Y)7.72%
DP260.15%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.46%
Min EPS beat(2)0.02%
Max EPS beat(2)0.9%
EPS beat(4)4
Avg EPS beat(4)0.98%
Min EPS beat(4)0.02%
Max EPS beat(4)1.73%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.2%
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)3
Avg Revenue beat(8)0.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)2.06%
PT rev (3m)0.89%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)0.9%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 17.02 | ||
| P/S | 6.68 | ||
| P/FCF | 21.11 | ||
| P/OCF | 20.01 | ||
| P/B | 113.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.6 |
EPS(TTM)9.32
EY4.75%
EPS(NY)11.54
Fwd EY5.87%
FCF(TTM)9.3
FCFY4.74%
OCF(TTM)9.81
OCFY5%
SpS29.39
BVpS1.73
TBVpS-47.84
PEG (NY)0.89
PEG (5Y)8.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROCE | 17.11% | ||
| ROIC | 13.34% | ||
| ROICexc | 14.16% | ||
| ROICexgc | N/A | ||
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% | ||
| FCFM | 31.65% |
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 | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 11.61% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 5.87 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 420.77% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.33 |
F-Score6
WACC8.93%
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)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
EPS Next Y23.75%
EPS Next 2Y18.56%
EPS Next 3Y16.15%
EPS Next 5Y12.19%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%5.6%
Revenue Next Year6.13%
Revenue Next 2Y7.07%
Revenue Next 3Y7.02%
Revenue Next 5Y5.94%
EBIT growth 1Y-0.34%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.95%
EBIT Next 3Y14.72%
EBIT Next 5Y12.86%
FCF growth 1Y-19.17%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-17.66%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%