ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4AB - US00287Y1091 - Common Stock
185.6 EUR
-0.4 (-0.22%)
Taking everything into account, 4AB scores 5 out of 10 in our fundamental rating. 4AB was compared to 86 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.
- Each year in the past 5 years 4AB has been profitable.
- 4AB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.75%, 4AB is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 15.64%, 4AB belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
- 4AB had an Average Return On Invested Capital over the past 3 years of 13.67%. This is above the industry average of 11.58%.
- The last Return On Invested Capital (15.64%) for 4AB is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROIC | 15.64% |
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's Profit Margin of 3.94% is fine compared to the rest of the industry. 4AB outperforms 76.74% of its industry peers.
- 4AB's Profit Margin has declined in the last couple of years.
- 4AB's Operating Margin of 33.05% is amongst the best of the industry. 4AB outperforms 88.37% of its industry peers.
- 4AB's Operating Margin has declined in the last couple of years.
- 4AB has a better Gross Margin (71.16%) than 61.63% of its industry peers.
- 4AB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% |
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 well above the Cost of Capital (WACC), which means it is creating 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
- The debt/assets ratio for 4AB is higher compared to a year ago.
2.2 Solvency
- 4AB has an Altman-Z score of 2.38. 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 Altman-Z score of 2.38. This is in the better half of the industry: 4AB outperforms 70.93% of its industry peers.
- The Debt to FCF ratio of 4AB is 3.49, which is a good value as it means it would take 4AB, 3.49 years of fcf income to pay off all of its debts.
- 4AB's Debt to FCF ratio of 3.49 is amongst the best of the industry. 4AB outperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.85
WACC8.44%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that 4AB may have some problems paying its short term obligations.
- With a Current ratio value of 0.72, 4AB is not doing good in the industry: 77.91% of the companies in the same industry are doing better.
- 4AB has a Quick Ratio of 0.72. 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 worse Quick ratio (0.60) than 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- 4AB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.09%.
- Measured over the past 5 years, 4AB shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
- Looking at the last year, 4AB shows a small growth in Revenue. The Revenue has grown by 7.40% in the last year.
- 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)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
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 13.67% on average per year.
- Based on estimates for the next years, 4AB will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.67%
Revenue Next Year8.74%
Revenue Next 2Y9.15%
Revenue Next 3Y8.74%
Revenue Next 5Y7.5%
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
- The Price/Earnings ratio is 23.00, which indicates a rather expensive current valuation of 4AB.
- 81.40% of the companies in the same industry are more expensive than 4AB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 4AB is valued at the same level.
- The Price/Forward Earnings ratio is 14.95, which indicates a correct valuation of 4AB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 89.53% of the companies listed in the same industry.
- 4AB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
- 77.91% of the companies in the same industry are more expensive than 4AB, based on the Enterprise Value to EBITDA ratio.
- 4AB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 4AB is cheaper than 84.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 15.88 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 4AB does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 4AB may justify a higher PE ratio.
- 4AB's earnings are expected to grow with 16.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.15
PEG (5Y)9.16
EPS Next 2Y19.85%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
- 4AB has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.71, 4AB pays a better dividend. On top of this 4AB pays more dividend than 97.67% of the companies listed in the same industry.
- 4AB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
- 4AB pays out 489.69% of its income as dividend. This is not a sustainable payout ratio.
- 4AB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP489.69%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
ABBVIE INC / 4AB.DE FAQ
What is the ChartMill fundamental rating of ABBVIE INC (4AB.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 4AB.DE.
What is the valuation status for 4AB stock?
ChartMill assigns a valuation rating of 6 / 10 to ABBVIE INC (4AB.DE). This can be considered as Fairly Valued.
How profitable is ABBVIE INC (4AB.DE) stock?
ABBVIE INC (4AB.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for 4AB stock?
The financial health rating of ABBVIE INC (4AB.DE) is 3 / 10.
How sustainable is the dividend of ABBVIE INC (4AB.DE) stock?
The dividend rating of ABBVIE INC (4AB.DE) is 6 / 10 and the dividend payout ratio is 489.69%.