ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
236.28 USD
+6.83 (+2.98%)
236.279 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 535 industry peers in the Biotechnology industry. While ABBV belongs to the best of the industry regarding profitability, there are 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
ABBV had positive earnings in the past year.
In the past year ABBV had a positive cash flow from operations.
In the past 5 years ABBV has always been profitable.
In the past 5 years ABBV always reported a positive cash flow from operatings.
1.2 Ratios
ABBV has a Return On Assets of 1.75%. This is amongst the best in the industry. ABBV outperforms 89.72% of its industry peers.
ABBV has a better Return On Invested Capital (15.64%) than 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 19.19%.
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 89.91% of the companies in the same industry.
ABBV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 33.05%, ABBV belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
In the last couple of years the Operating Margin of ABBV has declined.
ABBV has a Gross Margin of 71.16%. This is amongst the best in the industry. ABBV outperforms 82.06% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABBV is creating value.
The number of shares outstanding for ABBV remains at a similar level compared to 1 year ago.
The number of shares outstanding for ABBV has been increased compared to 5 years ago.
ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, ABBV is in the better half of the industry, outperforming 69.35% 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.
With an excellent Debt to FCF ratio value of 3.49, ABBV belongs to the best of the industry, outperforming 92.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.88
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.72 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Current ratio of 0.72 is on the low side compared to the rest of the industry. ABBV is outperformed by 89.72% of its industry peers.
ABBV has a Quick 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 Quick ratio of 0.60. This is amonst the worse of the industry: ABBV underperforms 91.40% 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
The Earnings Per Share is expected to grow by 13.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.31% on average over the next years.
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
Based on the Price/Earnings ratio of 25.00, the valuation of ABBV can be described as expensive.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 93.08% of the companies in the same industry.
ABBV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 16.28.
94.95% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 94.21% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 94.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.21 | ||
| EV/EBITDA | 17.04 |
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.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 16.76% in the coming years.
PEG (NY)3.96
PEG (5Y)9.96
EPS Next 2Y19.75%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.02%. 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 77.37. ABBV pays more dividend than 99.07% of the companies in the same industry.
ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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 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
ABBV pays out 489.69% of its income as dividend. 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%
236.28
+6.83 (+2.98%)
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 Cap417.40B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts78.92
Price Target248.59 (5.21%)
Short Float %1.07%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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)0.85%
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 | 25 | ||
| Fwd PE | 16.28 | ||
| P/S | 7 | ||
| P/FCF | 21.21 | ||
| P/OCF | 20.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.04 |
EPS(TTM)9.45
EY4%
EPS(NY)14.51
Fwd EY6.14%
FCF(TTM)11.14
FCFY4.72%
OCF(TTM)11.81
OCFY5%
SpS33.76
BVpS-1.5
TBVpS-52.41
PEG (NY)3.96
PEG (5Y)9.96
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 | 2.52 |
F-Score7
WACC8.33%
ROIC/WACC1.88
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 25 and the Price/Book (PB) ratio is -157.99.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.