ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
220.08 USD
-4.05 (-1.81%)
220.914 USD
+0.83 (+0.38%)
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 530 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, 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
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
Looking at the Return On Assets, with a value of 1.75%, ABBV belongs to the top of the industry, outperforming 88.87% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.64%, ABBV belongs to the best of the industry, outperforming 96.23% 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 18.28%.
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
With an excellent Profit Margin value of 3.94%, ABBV belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
ABBV's Profit Margin has declined in the last couple of years.
ABBV's Operating Margin of 33.05% is amongst the best of the industry. ABBV outperforms 96.98% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
The Gross Margin of ABBV (71.16%) is better than 82.08% of its industry peers.
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.
Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
ABBV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ABBV is higher compared to a year ago.
2.2 Solvency
ABBV has an Altman-Z score of 2.43. 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.
With a decent Altman-Z score value of 2.43, ABBV is doing good in the industry, outperforming 67.17% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.49, ABBV belongs to the top of the industry, outperforming 92.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.87
WACC8.36%
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.
The Current ratio of ABBV (0.72) is worse than 88.11% 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 88.87% 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%.
Measured over the past 5 years, ABBV shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
The Revenue has been growing slightly by 7.40% in the past year.
Measured over the past years, ABBV shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
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
Based on estimates for the next years, ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.69% on average per year.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.69%
Revenue Next Year8.74%
Revenue Next 2Y9.13%
Revenue Next 3Y8.7%
Revenue Next 5Y7.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 23.29 indicates a rather expensive valuation of ABBV.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 93.96% of the companies in the same industry.
ABBV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 15.14.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ABBV to the average of the S&P500 Index (23.88), we can say ABBV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
94.53% of the companies in the same industry are more expensive than ABBV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 95.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 16.28 |
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 16.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.19
PEG (5Y)9.28
EPS Next 2Y19.85%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 1.20, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.87% of the companies listed in the same industry.
ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
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.
The dividend of ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP489.69%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
220.08
-4.05 (-1.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners75.04%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap388.96B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts77.89
Price Target249.74 (13.48%)
Short Float %1.02%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)0.46%
PT rev (3m)7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 15.14 | ||
| P/S | 6.52 | ||
| P/FCF | 19.76 | ||
| P/OCF | 18.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.28 |
EPS(TTM)9.45
EY4.29%
EPS(NY)14.54
Fwd EY6.6%
FCF(TTM)11.14
FCFY5.06%
OCF(TTM)11.8
OCFY5.36%
SpS33.75
BVpS-1.49
TBVpS-52.38
PEG (NY)3.19
PEG (5Y)9.28
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 | 2.43 |
F-Score7
WACC8.36%
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 Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.69%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.74%
Revenue Next 2Y9.13%
Revenue Next 3Y8.7%
Revenue Next 5Y7.42%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year9.3%
EBIT Next 3Y15.61%
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.
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 23.29 and the Price/Book (PB) ratio is -147.22.
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 7.3% in the next year.