ABBVIE INC (4AB.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:4AB • US00287Y1091
177 EUR
-9.6 (-5.14%)
Last: Jan 30, 2026, 09:04 AM
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 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.
- In the past year 4AB had a positive cash flow from operations.
- 4AB had positive earnings in each of the past 5 years.
- Each year in the past 5 years 4AB had a positive operating cash flow.
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 75.29% of the companies in the same industry.
- 4AB has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. 4AB outperforms 92.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 4AB 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
- The Profit Margin of 4AB (3.94%) is better than 77.65% of its industry peers.
- In the last couple of years the Profit Margin of 4AB has declined.
- Looking at the Operating Margin, with a value of 33.05%, 4AB belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- 4AB's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 71.16%, 4AB is in line with its industry, outperforming 58.82% 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 | 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 4AB 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.
- Compared to 1 year ago, 4AB has a worse debt to assets ratio.
2.2 Solvency
- 4AB has an Altman-Z score of 2.32. 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.
- Looking at the Altman-Z score, with a value of 2.32, 4AB is in the better half of the industry, outperforming 68.24% of the companies in the same industry.
- 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 a decent Debt to FCF ratio value of 3.49, 4AB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.85
WACC8.43%
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: 76.47% 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 Quick ratio of 0.60. This is in the lower half of the industry: 4AB underperforms 76.47% 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.
- 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
- The Earnings Per Share is expected to grow by 13.67% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.50% on average over the next years.
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
- With a Price/Earnings ratio of 22.32, 4AB is valued on the expensive side.
- Based on the Price/Earnings ratio, 4AB is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
- 4AB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.53 indicates a correct valuation of 4AB.
- 92.94% of the companies in the same industry are more expensive than 4AB, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 4AB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4AB is valued a bit cheaper than 80.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 4AB indicates a rather cheap valuation: 4AB is cheaper than 88.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 15.45 |
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.
- 4AB has a very decent profitability rating, which 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)258.36
PEG (5Y)8.89
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.14%, 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 0.62. 4AB pays more dividend than 96.47% of the companies in the same industry.
- 4AB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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%.