ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4AB - US00287Y1091 - Common Stock
185.8 EUR
-0.2 (-0.11%)
Overall 4AB gets a fundamental rating of 5 out of 10. We evaluated 4AB against 86 industry peers in the Biotechnology industry. There are concerns on the financial health of 4AB while its profitability can be described as average. 4AB has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years 4AB has been profitable.
- In the past 5 years 4AB always reported a positive cash flow from operatings.
1.2 Ratios
- 4AB has a better Return On Assets (1.75%) than 74.42% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.64%, 4AB belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 4AB is above the industry average of 11.58%.
- The 3 year average ROIC (13.67%) for 4AB is below the current ROIC(15.64%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 3.94%. This is in the better half of the industry: 4AB outperforms 76.74% of its industry peers.
- In the last couple of years the Profit Margin of 4AB has declined.
- The Operating Margin of 4AB (33.05%) is better than 88.37% of its industry peers.
- In the last couple of years the Operating Margin of 4AB has declined.
- The Gross Margin of 4AB (71.16%) is better 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.
- 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
- An Altman-Z score of 2.38 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 2.38, 4AB is doing good in the industry, outperforming 70.93% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of 4AB (3.49) is better than 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
WACC8.46%
2.3 Liquidity
- 4AB has a Current 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.
- Looking at the Current ratio, with a value of 0.72, 4AB is doing worse than 77.91% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.60, 4AB is not doing good in the industry: 77.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The earnings per share for 4AB have decreased strongly by -12.09% in the last year.
- 4AB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
- The Revenue has been growing slightly by 7.40% in the past 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)-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
- Based on the Price/Earnings ratio of 23.02, the valuation of 4AB can be described as rather expensive.
- 4AB's Price/Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 81.40% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 4AB is valued at the same level.
- With a Price/Forward Earnings ratio of 14.96, 4AB is valued correctly.
- 89.53% of the companies in the same industry are more expensive than 4AB, based on the Price/Forward Earnings ratio.
- 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 | 23.02 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4AB is valued a bit cheaper than the industry average as 77.91% of the companies are valued more expensively.
- 84.88% 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 | 19.53 | ||
| 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)9.17
EPS Next 2Y19.85%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
- 4AB has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
- 4AB's Dividend Yield is rather good when compared to the industry average which is at 0.75. 4AB pays more dividend than 97.67% of the companies in the same industry.
- 4AB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
- 489.69% 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.
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%.