ABBVIE INC (ABBV)
US00287Y1091 - Common Stock
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 565 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are concerns on its financial health. ABBV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ABBV was profitable.
ABBV had a positive operating cash flow in the past year.
In the past 5 years ABBV has always been profitable.
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 3.54%, ABBV belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
ABBV has a better Return On Equity (84.23%) than 99.47% of its industry peers.
The Return On Invested Capital of ABBV (12.75%) is better than 96.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABBV is in line with the industry average of 15.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROIC | 12.75% |
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%
1.3 Margins
The Profit Margin of ABBV (9.15%) is better than 94.83% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
Looking at the Operating Margin, with a value of 27.79%, ABBV belongs to the top of the industry, outperforming 97.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ABBV has declined.
Looking at the Gross Margin, with a value of 67.25%, ABBV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% |
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABBV is still creating some 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.
ABBV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ABBV (1.86) is better than 71.66% of its industry peers.
The Debt to FCF ratio of ABBV is 4.55, which is a neutral value as it means it would take ABBV, 4.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.55, ABBV belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
A Debt/Equity ratio of 9.70 is on the high side and indicates that ABBV has dependencies on debt financing.
ABBV has a worse Debt to Equity ratio (9.70) than 83.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.27
WACC10.04%
2.3 Liquidity
A Current Ratio of 0.65 indicates that ABBV may have some problems paying its short term obligations.
The Current ratio of ABBV (0.65) is worse than 91.80% of its industry peers.
A Quick Ratio of 0.54 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a Quick ratio of 0.54. This is amonst the worse of the industry: ABBV underperforms 92.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased by -9.82% in the last year.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.72%.
ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.65% yearly.
EPS 1Y (TTM)-9.82%
EPS 3Y1.87%
EPS 5Y7.03%
EPS Q2Q%1.69%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Sales Q2Q%3.83%
3.2 Future
ABBV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y0.47%
EPS Next 2Y5.54%
EPS Next 3Y7.92%
EPS Next 5Y7.98%
Revenue Next Year3.71%
Revenue Next 2Y4.68%
Revenue Next 3Y5.62%
Revenue Next 5Y5.43%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 16.01, which indicates a correct valuation of ABBV.
Compared to the rest of the industry, the Price/Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 96.97% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.65, ABBV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.91, the valuation of ABBV can be described as correct.
96.79% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 13.91 |
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 96.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 96.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.47 | ||
| EV/EBITDA | 15.14 |
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.
ABBV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)34.42
PEG (5Y)2.28
EPS Next 2Y5.54%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.87%. 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 9.65. ABBV pays more dividend than 99.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ABBV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 10.41%!
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)10.41%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ABBV pays out 214.51% of its income as dividend. This is not a sustainable payout ratio.
ABBV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP214.51%
EPS Next 2Y5.54%
EPS Next 3Y7.92%
ABBVIE INC
NYSE:ABBV (11/21/2024, 2:37:09 PM)
172.128
+4.37 (+2.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap304.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 13.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)34.42
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y1.87%
EPS 5Y
EPS Q2Q%
EPS Next Y0.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.72%
Revenue growth 3Y5.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y