ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
220.77 USD
+1.51 (+0.69%)
220.01 USD
-0.76 (-0.34%)
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 525 industry peers in the Biotechnology industry. While ABBV has a great profitability rating, there are quite some concerns on its financial health. ABBV has a correct valuation and a medium growth rate. ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ABBV was profitable.
- In the past year ABBV had a positive cash flow from operations.
- ABBV had positive earnings in each of the past 5 years.
- Each year in the past 5 years ABBV had a positive operating cash flow.
1.2 Ratios
- ABBV's Return On Assets of 1.75% is amongst the best of the industry. ABBV outperforms 88.95% of its industry peers.
- With an excellent Return On Invested Capital value of 15.64%, ABBV belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ABBV is below the industry average of 18.07%.
- The last Return On Invested Capital (15.64%) for ABBV 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 ABBV (3.94%) is better than 89.14% of its industry peers.
- In the last couple of years the Profit Margin of ABBV has declined.
- ABBV has a better Operating Margin (33.05%) than 97.14% of its industry peers.
- In the last couple of years the Operating Margin of ABBV has declined.
- With an excellent Gross Margin value of 71.16%, ABBV belongs to the best of the industry, outperforming 82.10% of the companies in the same industry.
- ABBV'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
- ABBV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
- The number of shares outstanding for ABBV has been increased compared to 5 years ago.
- Compared to 1 year ago, ABBV has a worse debt to assets ratio.
2.2 Solvency
- ABBV has an Altman-Z score of 2.40. This is not the best score and indicates that ABBV is in the grey zone with still only limited risk for bankruptcy at the moment.
- ABBV has a better Altman-Z score (2.40) than 67.43% of its industry peers.
- The Debt to FCF ratio of ABBV is 3.49, which is a good value as it means it would take ABBV, 3.49 years of fcf income to pay off all of its debts.
- ABBV's Debt to FCF ratio of 3.49 is amongst the best of the industry. ABBV outperforms 92.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.85
WACC8.47%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that ABBV may have some problems paying its short term obligations.
- ABBV has a Current ratio of 0.72. This is amonst the worse of the industry: ABBV underperforms 88.19% of its industry peers.
- A Quick Ratio of 0.60 indicates that ABBV may have some problems paying its short term obligations.
- ABBV's Quick ratio of 0.60 is on the low side compared to the rest of the industry. ABBV is outperformed by 88.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- ABBV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.09%.
- ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
- Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 7.40% in the last 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
- ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.67% yearly.
- ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
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
- Based on the Price/Earnings ratio of 23.36, the valuation of ABBV can be described as rather expensive.
- ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.48% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, ABBV is valued at the same level.
- A Price/Forward Earnings ratio of 15.21 indicates a correct valuation of ABBV.
- Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 96.19% of the companies in the same industry.
- ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 15.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 94.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 95.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABBV does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of ABBV may justify a higher PE ratio.
- ABBV's earnings are expected to grow with 17.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)270.42
PEG (5Y)9.31
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- ABBV has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
- ABBV's Dividend Yield is rather good when compared to the industry average which is at 1.08. ABBV pays more dividend than 99.05% of the companies in the same industry.
- ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
- The dividend of ABBV is nicely growing with an annual growth rate of 7.72%!
- ABBV has paid a dividend for at least 10 years, which is a reliable track record.
- ABBV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- ABBV pays out 489.69% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP489.69%
EPS Next 2Y19.77%
EPS Next 3Y17.02%
ABBVIE INC / ABBV FAQ
Can you provide the ChartMill fundamental rating for ABBVIE INC?
ChartMill assigns a fundamental rating of 5 / 10 to ABBV.
What is the valuation status of ABBVIE INC (ABBV) stock?
ChartMill assigns a valuation rating of 6 / 10 to ABBVIE INC (ABBV). This can be considered as Fairly Valued.
Can you provide the profitability details for ABBVIE INC?
ABBVIE INC (ABBV) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ABBV stock?
The Price/Earnings (PE) ratio for ABBVIE INC (ABBV) is 23.36 and the Price/Book (PB) ratio is -147.69.
What is the expected EPS growth for ABBVIE INC (ABBV) stock?
The Earnings per Share (EPS) of ABBVIE INC (ABBV) is expected to grow by 0.09% in the next year.