ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
229.57 USD
+2.7 (+1.19%)
229.57 USD
0 (0%)
ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 536 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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 2.71%, ABBV belongs to the top of the industry, outperforming 90.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.81%, ABBV belongs to the top of the industry, outperforming 95.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABBV is in line with the industry average of 15.49%.
The 3 year average ROIC (13.67%) for ABBV is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROIC | 13.81% |
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 6.38%, ABBV belongs to the top of the industry, outperforming 91.59% of the companies in the same industry.
In the last couple of years the Profit Margin of ABBV has declined.
Looking at the Operating Margin, with a value of 31.27%, ABBV belongs to the top 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 70.93%. This is amongst the best in the industry. ABBV outperforms 82.24% of its industry peers.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
ABBV has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABBV has more shares outstanding
The debt/assets ratio for ABBV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 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 2.43, ABBV is in the better half of the industry, outperforming 66.17% of the companies in the same industry.
ABBV has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as ABBV would need 3.86 years to pay back of all of its debts.
The Debt to FCF ratio of ABBV (3.86) is better than 93.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.51
WACC9.12%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a worse Current ratio (0.74) than 89.91% of its industry peers.
ABBV has a Quick Ratio of 0.74. 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 0.61. This is amonst the worse of the industry: ABBV underperforms 91.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 6.05% 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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
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 13.59% on average per year.
ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.22% yearly.
EPS Next Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 21.68, which indicates a rather expensive current 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 94.95% of the companies listed in the same industry.
ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 15.78, ABBV is valued correctly.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 94.58% of the companies in the same industry.
ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
ABBV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 94.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 17.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.82% in the coming years.
PEG (NY)1.02
PEG (5Y)8.63
EPS Next 2Y19.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 96.51, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
ABBV pays out 304.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP304.54%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
229.57
+2.7 (+1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.27%
Ins Owners0.05%
Ins Owner Change0.1%
Market Cap405.55B
Analysts79.46
Price Target232.38 (1.22%)
Short Float %0.94%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.04%
Min EPS beat(2)0.95%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.75%
Min EPS beat(4)0.02%
Max EPS beat(4)1.14%
EPS beat(8)7
Avg EPS beat(8)0.76%
EPS beat(12)9
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)0.4%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)3.86%
PT rev (3m)7.64%
EPS NQ rev (1m)-15.29%
EPS NQ rev (3m)-13.85%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 15.78 | ||
| P/S | 6.95 | ||
| P/FCF | 22.24 | ||
| P/OCF | 21.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.5 |
EPS(TTM)10.59
EY4.61%
EPS(NY)14.55
Fwd EY6.34%
FCF(TTM)10.32
FCFY4.5%
OCF(TTM)10.92
OCFY4.75%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)1.02
PEG (5Y)8.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROCE | 18.72% | ||
| ROIC | 13.81% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 370.81% | ||
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% | ||
| FCFM | 31.27% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 12.62% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.74% | ||
| Profit Quality | 489.9% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.43 |
F-Score6
WACC9.12%
ROIC/WACC1.51
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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
EPS Next Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.27%
FCF growth 1Y-26.45%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-24.5%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%