ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
229.89 USD
+1.1 (+0.48%)
229.896 USD
0.01 (0%)
ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 530 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV is not valued too expensively and it also shows a decent growth rate. Finally ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ABBV had positive earnings in the past year.
ABBV had a positive operating cash flow in the past year.
Each year in the past 5 years ABBV has been profitable.
Each year in the past 5 years ABBV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.75%, ABBV belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
ABBV has a better Return On Invested Capital (15.64%) than 96.23% of its industry peers.
ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is below the industry average of 18.22%.
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
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 has a better Operating Margin (33.05%) than 96.98% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
The Gross Margin of ABBV (71.16%) is better than 82.08% 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
ABBV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 worse debt/assets ratio than last year.
2.2 Solvency
ABBV has an Altman-Z score of 2.47. 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's Altman-Z score of 2.47 is fine compared to the rest of the industry. ABBV outperforms 66.60% 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.
The Debt to FCF ratio of ABBV (3.49) is better than 92.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.47 |
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 90.00% 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.
With a Quick ratio value of 0.60, ABBV is not doing good in the industry: 90.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased strongly by -12.09% in the last year.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 7.40% in the last 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
The Earnings Per Share is expected to grow by 13.69% on average over the next years. This is quite good.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y7.28%
EPS Next 2Y19.81%
EPS Next 3Y16.75%
EPS Next 5Y13.69%
Revenue Next Year8.73%
Revenue Next 2Y9.07%
Revenue Next 3Y8.57%
Revenue Next 5Y7.42%
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
A Price/Earnings ratio of 24.33 indicates a rather expensive valuation of ABBV.
Based on the Price/Earnings ratio, ABBV is valued cheaply inside the industry as 93.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. ABBV is around the same levels.
The Price/Forward Earnings ratio is 15.83, which indicates a correct valuation of ABBV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 96.04% of the companies listed in the same industry.
ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 15.83 |
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 94.53% of the companies listed 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 95.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.64 | ||
| EV/EBITDA | 16.65 |
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.
ABBV's earnings are expected to grow with 16.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.34
PEG (5Y)9.69
EPS Next 2Y19.81%
EPS Next 3Y16.75%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.02, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, ABBV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
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 2Y19.81%
EPS Next 3Y16.75%
229.89
+1.1 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.96%
Inst Owner Change-0.62%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap406.30B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts77.89
Price Target249.74 (8.63%)
Short Float %1.03%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)2.92%
PT rev (3m)11.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.91%
EPS NY rev (3m)-11.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 15.83 | ||
| P/S | 6.81 | ||
| P/FCF | 20.64 | ||
| P/OCF | 19.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.65 |
EPS(TTM)9.45
EY4.11%
EPS(NY)14.53
Fwd EY6.32%
FCF(TTM)11.14
FCFY4.84%
OCF(TTM)11.8
OCFY5.13%
SpS33.75
BVpS-1.49
TBVpS-52.38
PEG (NY)3.34
PEG (5Y)9.69
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 | 2.47 |
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 Y7.28%
EPS Next 2Y19.81%
EPS Next 3Y16.75%
EPS Next 5Y13.69%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.73%
Revenue Next 2Y9.07%
Revenue Next 3Y8.57%
Revenue Next 5Y7.42%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year9.29%
EBIT Next 3Y15.46%
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.
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 24.33 and the Price/Book (PB) ratio is -153.79.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.