ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4AB - US00287Y1091 - Common Stock
184.4 EUR
-3.6 (-1.91%)
We assign a fundamental rating of 5 out of 10 to 4AB. 4AB was compared to 85 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
- 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
- The Return On Assets of 4AB (1.75%) is better than 74.12% of its industry peers.
- 4AB has a better Return On Invested Capital (15.64%) than 91.76% 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 11.71%.
- 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
- Looking at the Profit Margin, with a value of 3.94%, 4AB is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of 4AB has declined.
- 4AB has a Operating Margin of 33.05%. This is amongst the best in the industry. 4AB outperforms 87.06% of its industry peers.
- In the last couple of years the Operating Margin of 4AB has declined.
- 4AB has a Gross Margin (71.16%) which is in line with 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 4AB is creating value.
- 4AB has about the same amout of shares outstanding than it did 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 2.43. 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.
- With a decent Altman-Z score value of 2.43, 4AB is doing good in the industry, outperforming 70.59% 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.
- With a decent Debt to FCF ratio value of 3.49, 4AB is doing good in the industry, outperforming 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.86
WACC8.42%
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.
- 4AB has a Current ratio of 0.72. This is in the lower half of the industry: 4AB underperforms 77.65% of its industry peers.
- 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 77.65% 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%.
- 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 Y0.09%
EPS Next 2Y19.77%
EPS Next 3Y17.02%
EPS Next 5Y13.67%
Revenue Next Year8.75%
Revenue Next 2Y9.23%
Revenue Next 3Y8.83%
Revenue Next 5Y7.5%
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
- Based on the Price/Earnings ratio of 23.28, the valuation of 4AB can be described as rather expensive.
- Based on the Price/Earnings ratio, 4AB is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, 4AB is valued at the same level.
- A Price/Forward Earnings ratio of 15.15 indicates a correct valuation of 4AB.
- 4AB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 90.59% 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 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4AB is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, 4AB is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 16.29 |
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 17.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)269.5
PEG (5Y)9.27
EPS Next 2Y19.77%
EPS Next 3Y17.02%
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.
- 4AB's Dividend Yield is rather good when compared to the industry average which is at 0.70. 4AB pays more dividend than 97.65% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 4AB pays a better dividend.
| 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 2Y19.77%
EPS Next 3Y17.02%
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%.