ABB LTD-SPON ADR (ABB) Fundamental Analysis & Valuation

NYSE:ABB • US0003752047

Current stock price

37.13 USD
-0.43 (-1.14%)
At close:
37.15 USD
+0.02 (+0.05%)
After Hours:

This ABB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ABB Profitability Analysis

1.1 Basic Checks

  • ABB had positive earnings in the past year.
  • In the past year ABB had a positive cash flow from operations.
ABB Yearly Net Income VS EBIT VS OCF VS FCFABB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.26%, ABB belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
  • ABB's Return On Equity of 23.78% is amongst the best of the industry. ABB outperforms 91.76% of its industry peers.
  • ABB's Return On Invested Capital of 13.39% is amongst the best of the industry. ABB outperforms 90.59% of its industry peers.
  • ABB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is in line with the industry average of 9.56%.
  • 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 RankSector 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%
ABB Yearly ROA, ROE, ROICABB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 10 20 30

1.3 Margins

  • ABB has a better Profit Margin (9.58%) than 88.24% of its industry peers.
  • ABB's Profit Margin has been stable in the last couple of years.
  • 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.
  • In the last couple of years the Operating Margin of ABB has grown nicely.
  • 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 RankSector 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%
ABB Yearly Profit, Operating, Gross MarginsABB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. ABB Health Analysis

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.
ABB Yearly Shares OutstandingABB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B
ABB Yearly Total Debt VS Total AssetsABB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

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 has a Altman-Z score of 3.33. This is in the better half of the industry: ABB outperforms 65.88% of its industry peers.
  • 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.
  • ABB has a Debt to FCF ratio of 6.17. This is in the better half of the industry: ABB outperforms 78.82% of its industry peers.
  • A Debt/Equity ratio of 0.43 indicates that ABB is not too dependend on debt financing.
  • ABB's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. ABB is outperformed by 65.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 6.17
Altman-Z 3.33
ROIC/WACC2.21
WACC6.05%
ABB Yearly LT Debt VS Equity VS FCFABB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.15 indicates that ABB should not have too much problems paying 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.
  • A Quick Ratio of 0.80 indicates that ABB may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.80, ABB is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 0.8
ABB Yearly Current Assets VS Current LiabilitesABB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ABB Growth Analysis

3.1 Past

  • ABB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.41%, which is quite impressive.
  • The Earnings Per Share has been growing by 9.04% on average over the past years. This is quite good.
  • Looking at the last year, ABB shows a small growth in Revenue. The Revenue has grown by 4.59% in the last year.
  • 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.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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.
ABB Yearly Revenue VS EstimatesABB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
ABB Yearly EPS VS EstimatesABB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

5

4. ABB Valuation Analysis

4.1 Price/Earnings Ratio

  • ABB is valuated rather expensively with a Price/Earnings ratio of 17.51.
  • Based on the Price/Earnings ratio, ABB is valued cheaply inside the industry as 84.71% of the companies are valued more expensively.
  • ABB is valuated rather cheaply when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.27, which indicates a rather expensive current valuation of ABB.
  • 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.
  • When comparing the Price/Forward Earnings ratio of ABB to the average of the S&P500 Index (23.83), we can say ABB is valued inline with the index average.
Industry RankSector Rank
PE 17.51
Fwd PE 20.27
ABB Price Earnings VS Forward Price EarningsABB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
  • 75.29% of the companies in the same industry are more expensive than ABB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 49.22
EV/EBITDA 14.97
ABB Per share dataABB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ABB has a very decent 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ABB Dividend Analysis

5.1 Amount

  • ABB does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

ABB Fundamentals: All Metrics, Ratios and Statistics

ABB LTD-SPON ADR

NYSE:ABB (5/22/2023, 8:15:14 PM)

After market: 37.15 +0.02 (+0.05%)

37.13

-0.43 (-1.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)04-25
Earnings (Next)07-20
Inst Owners0.11%
Inst Owner Change1.01%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for ABB stock?

ChartMill assigns a fundamental rating of 4 / 10 to ABB.


Can you provide the valuation status for ABB LTD-SPON ADR?

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 is the financial health of ABB LTD-SPON ADR (ABB) stock?

The financial health rating of ABB LTD-SPON ADR (ABB) is 4 / 10.


Can you provide the dividend sustainability for ABB stock?

The dividend rating of ABB LTD-SPON ADR (ABB) is 0 / 10 and the dividend payout ratio is 72.34%.