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 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 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.
- 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 73.86% of its industry peers.
- 4AB's Return On Invested Capital of 15.64% is amongst the best of the industry. 4AB outperforms 93.18% 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 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 76.14% of its industry peers.
- 4AB's Profit Margin has declined in the last couple of years.
- The Operating Margin of 4AB (33.05%) is better than 87.50% of its industry peers.
- 4AB's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 71.16%, 4AB is doing good in the industry, outperforming 60.23% of the companies in the same industry.
- 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.
- 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.
- 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's Altman-Z score of 2.38 is fine compared to the rest of the industry. 4AB outperforms 69.32% of its industry peers.
- 4AB has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as 4AB would need 3.49 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 3.49, 4AB belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
| 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: 78.41% of the companies in the same industry are doing better.
- A Quick Ratio of 0.60 indicates that 4AB may have some problems paying its short term obligations.
- 4AB has a Quick ratio of 0.60. This is in the lower half of the industry: 4AB underperforms 78.41% of its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
- The Revenue has been growing slightly by 7.40% in the past year.
- The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 13.67% 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 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.
- 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 23.06, the valuation of 4AB can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 81.82% of the companies listed 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 15.01, 4AB is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 90.91% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 4AB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 15.01 |
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 78.41% of the companies listed in the same industry.
- 85.23% 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 | 19.57 | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.02% in the coming years.
PEG (NY)266.88
PEG (5Y)9.18
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.17%, 4AB has a reasonable but not impressive dividend return.
- 4AB's Dividend Yield is rather good when compared to the industry average which is at 0.70. 4AB pays more dividend than 97.73% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 4AB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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
- 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%.