ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
227.7 USD
+0.04 (+0.02%)
226.9 USD
-0.8 (-0.35%)
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 533 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 decent growth rate and is not valued too expensively. ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ABBV had positive earnings in the past year.
In the past year ABBV had a positive cash flow from operations.
ABBV had positive earnings in each of the past 5 years.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABBV has a Return On Assets of 1.75%. This is amongst the best in the industry. ABBV outperforms 89.70% of its industry peers.
ABBV's Return On Invested Capital of 15.64% is amongst the best of the industry. ABBV outperforms 96.07% of its industry peers.
ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is significantly below the industry average of 18.83%.
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
Looking at the Profit Margin, with a value of 3.94%, ABBV belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
In the last couple of years the Profit Margin of ABBV has declined.
With an excellent Operating Margin value of 33.05%, ABBV belongs to the best of the industry, outperforming 97.00% of the companies in the same industry.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a better Gross Margin (71.16%) than 82.02% of its industry peers.
In the last couple of years the Gross Margin of ABBV 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
ABBV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ABBV has about the same amout of shares outstanding than it did 1 year ago.
ABBV has more shares outstanding than it did 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 2.45. 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.
The Altman-Z score of ABBV (2.45) is better than 67.98% 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.
The Debt to FCF ratio of ABBV (3.49) is better than 92.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.89
WACC8.29%
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 89.70% of its industry peers.
A Quick Ratio of 0.60 indicates that ABBV may have some problems paying its short term obligations.
The Quick ratio of ABBV (0.60) is worse than 91.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased strongly by -12.09% in the last year.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
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 13.69% yearly.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.69%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.42%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ABBV is valuated rather expensively with a Price/Earnings ratio of 24.10.
Based on the Price/Earnings ratio, ABBV is valued cheaply inside the industry as 93.45% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (26.31), we can say ABBV is valued inline with the index average.
The Price/Forward Earnings ratio is 15.69, which indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 95.69% of the companies in the same industry.
ABBV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
ABBV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.57% of the companies in the same industry.
94.57% of the companies in the same industry are more expensive than ABBV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.44 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ABBV may justify a higher PE ratio.
ABBV's earnings are expected to grow with 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.82
PEG (5Y)9.6
EPS Next 2Y19.75%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 74.39, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
ABBV has paid a dividend for at least 10 years, which is a reliable track record.
ABBV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
489.69% of the earnings are spent on dividend by ABBV. 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 2Y19.75%
EPS Next 3Y16.76%
227.7
+0.04 (+0.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.71%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap402.43B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts78.92
Price Target248.59 (9.17%)
Short Float %1.07%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP489.69%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.85%
Min EPS beat(2)0.95%
Max EPS beat(2)2.75%
EPS beat(4)4
Avg EPS beat(4)1.21%
Min EPS beat(4)0.02%
Max EPS beat(4)2.75%
EPS beat(8)7
Avg EPS beat(8)0.95%
EPS beat(12)9
Avg EPS beat(12)0.65%
EPS beat(16)11
Avg EPS beat(16)0.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.31%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)5
Avg Revenue beat(16)-0.74%
PT rev (1m)6.98%
PT rev (3m)12.34%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-12.33%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 15.69 | ||
| P/S | 6.75 | ||
| P/FCF | 20.44 | ||
| P/OCF | 19.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.51 |
EPS(TTM)9.45
EY4.15%
EPS(NY)14.51
Fwd EY6.37%
FCF(TTM)11.14
FCFY4.89%
OCF(TTM)11.8
OCFY5.18%
SpS33.75
BVpS-1.49
TBVpS-52.38
PEG (NY)3.82
PEG (5Y)9.6
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROCE | 20.86% | ||
| ROIC | 15.64% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 572.43% | ||
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% | ||
| FCFM | 33% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.68%
ROICexc(3y)15.06%
ROICexc(5y)13.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.27%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.87%
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%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 14.25% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.59% | ||
| Profit Quality | 838.33% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.45 |
F-Score7
WACC8.29%
ROIC/WACC1.89
Cap/Depr(3y)9.59%
Cap/Depr(5y)10.06%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.5%
Profit Quality(3y)361.43%
Profit Quality(5y)328.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.69%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.42%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.36%
FCF growth 1Y-20.4%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-18.24%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%
ABBVIE INC / ABBV FAQ
Can you provide the ChartMill fundamental rating for ABBVIE INC?
ChartMill assigns a fundamental rating of 5 / 10 to ABBV.
Can you provide the valuation status for ABBVIE INC?
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.
What are the PE and PB ratios of ABBVIE INC (ABBV) stock?
The Price/Earnings (PE) ratio for ABBVIE INC (ABBV) is 24.1 and the Price/Book (PB) ratio is -152.32.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.