ABB LTD-SPON ADR (ABB) Stock Fundamental Analysis
NYSE:ABB - New York Stock Exchange, Inc. - US0003752047 - ADR - Currency: USD
Taking everything into account, ABB scores 5 out of 10 in our fundamental rating. ABB was compared to 94 industry peers in the Electrical Equipment industry. While ABB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ABB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ABB was profitable.
In the past year ABB had a positive cash flow from operations.
ABB had positive earnings in each of the past 5 years.
Each year in the past 5 years ABB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABB (7.26%) is better than 84.71% of its industry peers.
ABB has a better Return On Equity (23.78%) than 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.
Measured over the past 3 years, the Average Return On Invested Capital for ABB is in line with the industry average of 9.89%.
The last Return On Invested Capital (13.39%) for ABB is above the 3 year average (10.12%), which is a sign of increasing profitability.
| 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
ABB's Profit Margin of 9.58% is amongst the best of the industry. ABB outperforms 88.24% of its industry peers.
ABB's Profit Margin has been stable in the last couple of years.
ABB's Operating Margin of 12.81% is amongst the best of the industry. ABB outperforms 84.71% of its industry peers.
ABB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.50%, ABB is doing good in the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Gross Margin of ABB has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ABB is creating value.
Compared to 1 year ago, ABB has less shares outstanding
The debt/assets ratio for ABB is higher compared to a year ago.
2.2 Solvency
ABB has an Altman-Z score of 3.33. This indicates that ABB is financially healthy and has little risk of bankruptcy at the moment.
ABB's Altman-Z score of 3.33 is fine compared to the rest of the industry. ABB outperforms 65.88% of its industry peers.
The Debt to FCF ratio of ABB is 6.17, which is on the high side as it means it would take ABB, 6.17 years of fcf income to pay off all of its debts.
ABB has a better Debt to FCF ratio (6.17) than 78.82% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ABB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, ABB is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 3.33 |
ROIC/WACC2.21
WACC6.05%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ABB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, ABB is doing worse than 85.88% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that ABB may have some problems paying its short term obligations.
ABB has a worse Quick ratio (0.80) than 80.00% of its industry peers.
| 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%.
The Revenue has been growing slightly by 3.17% on average over the past years.
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
ABB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.03% yearly.
Based on estimates for the next years, ABB will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
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
ABB is valuated rather expensively with a Price/Earnings ratio of 17.51.
Compared to the rest of the industry, the Price/Earnings ratio of ABB indicates a rather cheap valuation: ABB is cheaper than 84.71% of the companies listed in the same industry.
ABB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
ABB is valuated rather expensively with a Price/Forward Earnings ratio of 20.27.
Based on the Price/Forward Earnings ratio, ABB is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ABB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
81.18% of the companies in the same industry are more expensive than ABB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABB indicates a somewhat cheap valuation: ABB is cheaper than 75.29% of the companies listed 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
No dividends for ABB!.
| 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 Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap69.05B
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
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
ROICexcg growth 3Y33.86%
ROICexcg 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%