ABB LTD-SPON ADR (ABB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABB - US0003752047 - ADR
37.13 USD
-0.43 (-1.14%)
37.15 USD
+0.02 (+0.05%)
We assign a fundamental rating of 5 out of 10 to ABB. ABB was compared to 90 industry peers in the Electrical Equipment industry. While ABB has a great profitability rating, there are some minor concerns on its financial health. ABB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABB was profitable.
ABB had a positive operating cash flow in the past year.
ABB had positive earnings in each of the past 5 years.
ABB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABB's Return On Assets of 7.26% is amongst the best of the industry. ABB outperforms 84.71% of its industry peers.
ABB's Return On Equity of 23.78% is amongst the best of the industry. ABB outperforms 91.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.39%, ABB belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABB is in line with the industry average of 9.86%.
The 3 year average ROIC (10.12%) for ABB is below the current ROIC(13.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.78% | ||
| ROIC | 13.39% |
ROA(3y)10.05%
ROA(5y)7.63%
ROE(3y)27.12%
ROE(5y)21.51%
ROIC(3y)10.12%
ROIC(5y)8.59%
1.3 Margins
With an excellent Profit Margin value of 9.58%, ABB belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ABB has remained more or less at the same level.
With an excellent Operating Margin value of 12.81%, ABB belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
ABB's Operating Margin has improved in the last couple of years.
ABB has a better Gross Margin (33.50%) than 77.65% of its industry peers.
ABB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 9.58% | ||
| GM | 33.5% |
OM growth 3Y19.92%
OM growth 5Y6.22%
PM growth 3Y17.79%
PM growth 5Y-0.88%
GM growth 3Y1.06%
GM growth 5Y0.78%
2. Health
2.1 Basic Checks
ABB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ABB has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, ABB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.33 indicates that ABB is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.33, ABB is doing good in the industry, outperforming 65.88% of the companies in the same industry.
ABB has a debt to FCF ratio of 6.17. This is a slightly negative value and a sign of low solvency as ABB would need 6.17 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.17, ABB is doing good in the industry, outperforming 78.82% of the companies in the same industry.
ABB has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, ABB is doing worse than 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 3.33 |
ROIC/WACC2.21
WACC6.05%
2.3 Liquidity
ABB has a Current Ratio of 1.15. This is a normal value and indicates that ABB is financially healthy and should not expect problems in meeting its short term obligations.
ABB has a Current ratio of 1.15. This is amonst the worse of the industry: ABB underperforms 85.88% of its industry peers.
ABB has a Quick Ratio of 1.15. This is a bad value and indicates that ABB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.80, ABB is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.41% over the past year.
ABB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
ABB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.59%.
Measured over the past years, ABB shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y9.04%
EPS Q2Q%47.37%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y3.17%
Sales Q2Q%12.84%
3.2 Future
The Earnings Per Share is expected to grow by 9.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.34% on average over the next years.
EPS Next Y-13.26%
EPS Next 2Y-2.88%
EPS Next 3Y1.22%
EPS Next 5Y9.03%
Revenue Next Year5.71%
Revenue Next 2Y4.82%
Revenue Next 3Y4.75%
Revenue Next 5Y5.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of ABB.
84.71% of the companies in the same industry are more expensive than ABB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.55. ABB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.27, ABB is valued on the expensive side.
70.59% of the companies in the same industry are more expensive than ABB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.78. ABB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABB is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
ABB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABB is cheaper than 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.22 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
ABB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-2.88%
EPS Next 3Y1.22%
5. Dividend
5.1 Amount
ABB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.13
-0.43 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.11%
Inst Owner Change22.72%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap69.05B
Revenue(TTM)30.34B
Net Income(TTM)2.91B
Analysts72.12
Price Target38.91 (4.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP72.34%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.5%
Min EPS beat(2)1.02%
Max EPS beat(2)53.99%
EPS beat(4)4
Avg EPS beat(4)23.33%
Min EPS beat(4)1.02%
Max EPS beat(4)53.99%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.18%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-5.98%
Max Revenue beat(4)1.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.75%
PT rev (3m)10.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 | ||
| P/S | 2.28 | ||
| P/FCF | 49.22 | ||
| P/OCF | 32.43 | ||
| P/B | 5.65 | ||
| P/tB | 123.09 | ||
| EV/EBITDA | 14.97 |
EPS(TTM)2.12
EY5.71%
EPS(NY)1.83
Fwd EY4.93%
FCF(TTM)0.75
FCFY2.03%
OCF(TTM)1.14
OCFY3.08%
SpS16.31
BVpS6.57
TBVpS0.3
PEG (NY)N/A
PEG (5Y)1.94
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.78% | ||
| ROCE | N/A | ||
| ROIC | 13.39% | ||
| ROICexc | 17.08% | ||
| ROICexgc | 47.91% | ||
| OM | 12.81% | ||
| PM (TTM) | 9.58% | ||
| GM | 33.5% | ||
| FCFM | N/A |
ROA(3y)10.05%
ROA(5y)7.63%
ROE(3y)27.12%
ROE(5y)21.51%
ROIC(3y)10.12%
ROIC(5y)8.59%
ROICexc(3y)12.91%
ROICexc(5y)10.74%
ROICexgc(3y)34.82%
ROICexgc(5y)28.24%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y33.86%
ROICexgc growth 5Y16.29%
ROICexc growth 3Y28.94%
ROICexc growth 5Y12.32%
OM growth 3Y19.92%
OM growth 5Y6.22%
PM growth 3Y17.79%
PM growth 5Y-0.88%
GM growth 3Y1.06%
GM growth 5Y0.78%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.17 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 91.32% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 48.26% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.33 |
F-Score7
WACC6.05%
ROIC/WACC2.21
Cap/Depr(3y)87.09%
Cap/Depr(5y)84.97%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)31.95%
Profit Quality(5y)60.7%
High Growth Momentum
Growth
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y9.04%
EPS Q2Q%47.37%
EPS Next Y-13.26%
EPS Next 2Y-2.88%
EPS Next 3Y1.22%
EPS Next 5Y9.03%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y3.17%
Sales Q2Q%12.84%
Revenue Next Year5.71%
Revenue Next 2Y4.82%
Revenue Next 3Y4.75%
Revenue Next 5Y5.34%
EBIT growth 1Y-34.08%
EBIT growth 3Y21.98%
EBIT growth 5Y9.58%
EBIT Next Year45.33%
EBIT Next 3Y17.05%
EBIT Next 5YN/A
FCF growth 1Y-34.44%
FCF growth 3Y-30.49%
FCF growth 5Y-29.65%
OCF growth 1Y-24.32%
OCF growth 3Y-17.89%
OCF growth 5Y-19.47%
ABB LTD-SPON ADR / ABB FAQ
What is the fundamental rating for ABB stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABB.
What is the valuation status for ABB stock?
ChartMill assigns a valuation rating of 2 / 10 to ABB LTD-SPON ADR (ABB). This can be considered as Overvalued.
What is the profitability of ABB stock?
ABB LTD-SPON ADR (ABB) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ABB LTD-SPON ADR (ABB) stock?
The Price/Earnings (PE) ratio for ABB LTD-SPON ADR (ABB) is 17.51 and the Price/Book (PB) ratio is 5.65.
Can you provide the expected EPS growth for ABB stock?
The Earnings per Share (EPS) of ABB LTD-SPON ADR (ABB) is expected to decline by -13.26% in the next year.