ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
233.87 USD
-0.13 (-0.06%)
234.085 USD
+0.22 (+0.09%)
Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 533 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV has a correct valuation and a medium growth rate. Finally 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.
Each year in the past 5 years ABBV has been profitable.
In the past 5 years ABBV always reported a positive cash flow from operatings.
1.2 Ratios
ABBV has a better Return On Assets (1.75%) than 89.87% of its industry peers.
The Return On Invested Capital of ABBV (15.64%) is better than 96.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABBV is below the industry average of 15.88%.
The 3 year average ROIC (13.67%) for ABBV is below the current ROIC(15.64%), indicating increased profibility in the last year.
| 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
ABBV has a better Profit Margin (3.94%) than 90.24% of its industry peers.
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 97.19% of the companies in the same industry.
ABBV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 71.16%, ABBV belongs to the top of the industry, outperforming 82.18% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABBV 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.
ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
ABBV has an Altman-Z score of 2.50. 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 Altman-Z score of 2.50. This is in the better half of the industry: ABBV outperforms 69.23% of its industry peers.
ABBV has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as ABBV would need 3.49 years to pay back of all of its debts.
ABBV has a Debt to FCF ratio of 3.49. This is amongst the best in the industry. ABBV outperforms 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.87
WACC8.38%
2.3 Liquidity
ABBV has a Current Ratio of 0.72. This is a bad value and indicates that ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
ABBV has a worse Current ratio (0.72) than 90.43% 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 91.74% 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%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 7.40% in the past year.
ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
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 13.65% yearly.
ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.31% yearly.
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.65%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.31%
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
ABBV is valuated rather expensively with a Price/Earnings ratio of 24.75.
Compared to the rest of the industry, the Price/Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 93.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. ABBV is around the same levels.
A Price/Forward Earnings ratio of 16.11 indicates a correct valuation of ABBV.
94.37% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 93.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 94.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.99 | ||
| EV/EBITDA | 16.9 |
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.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 16.76% in the coming years.
PEG (NY)3.92
PEG (5Y)9.86
EPS Next 2Y19.75%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 70.88, 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 2.44, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 7.72%!
ABBV has been paying a dividend for at least 10 years, so it has 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
489.69% of the earnings are spent on dividend by ABBV. This is not a sustainable payout ratio.
ABBV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP489.69%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
233.87
-0.13 (-0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.68%
Ins Owners0.05%
Ins Owner Change-0.69%
Market Cap413.15B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts78.92
Price Target242.66 (3.76%)
Short Float %1.07%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)4.42%
PT rev (3m)10.64%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)-12.28%
EPS NY rev (3m)-13.15%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 16.11 | ||
| P/S | 6.93 | ||
| P/FCF | 20.99 | ||
| P/OCF | 19.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.9 |
EPS(TTM)9.45
EY4.04%
EPS(NY)14.51
Fwd EY6.21%
FCF(TTM)11.14
FCFY4.76%
OCF(TTM)11.81
OCFY5.05%
SpS33.76
BVpS-1.5
TBVpS-52.41
PEG (NY)3.92
PEG (5Y)9.86
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 | 2.5 |
F-Score7
WACC8.38%
ROIC/WACC1.87
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 5Y13.65%
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 5Y7.31%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.09%
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 24.75 and the Price/Book (PB) ratio is -156.38.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.