ABBVIE INC (ABBV) Stock Fundamental Analysis
NYSE:ABBV - New York Stock Exchange, Inc. - US00287Y1091 - Common Stock - Currency: USD
ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 557 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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
ABBV's Return On Assets of 3.05% is amongst the best of the industry. ABBV outperforms 91.74% of its industry peers.
Looking at the Return On Equity, with a value of 292.61%, ABBV belongs to the top of the industry, outperforming 99.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.43%, ABBV belongs to the top of the industry, outperforming 96.23% 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 14.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROIC | 13.43% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
1.3 Margins
The Profit Margin of ABBV (7.24%) is better than 92.28% of its industry peers.
ABBV's Profit Margin has declined in the last couple of years.
ABBV's Operating Margin of 30.43% is amongst the best of the industry. ABBV outperforms 97.67% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
ABBV has a better Gross Margin (70.69%) than 82.05% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% |
OM growth 3Y-5.46%
OM growth 5Y-6.07%
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.
The number of shares outstanding for ABBV remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 2.16 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 2.16, ABBV is in the better half of the industry, outperforming 70.56% of the companies in the same industry.
The Debt to FCF ratio of ABBV is 4.54, which is a neutral value as it means it would take ABBV, 4.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABBV (4.54) is better than 93.36% of its industry peers.
A Debt/Equity ratio of 46.56 is on the high side and indicates that ABBV has dependencies on debt financing.
With a Debt to Equity ratio value of 46.56, ABBV is not doing good in the industry: 84.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.43
WACC9.39%
2.3 Liquidity
ABBV has a Current Ratio of 0.76. 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 Current ratio of 0.76. This is amonst the worse of the industry: ABBV underperforms 89.59% of its industry peers.
A Quick Ratio of 0.64 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a Quick ratio of 0.64. This is amonst the worse of the industry: ABBV underperforms 90.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.30%.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
3.2 Future
ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.01% yearly.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
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.
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
With a Price/Earnings ratio of 18.48, ABBV is valued on the expensive side.
Based on the Price/Earnings ratio, ABBV is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 13.26 indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaply inside the industry as 94.97% of the companies are valued more expensively.
ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 95.33% of the companies in the same industry.
94.25% of the companies in the same industry are more expensive than ABBV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 15.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ABBV has a very decent profitability rating, which may justify a higher PE ratio.
ABBV's earnings are expected to grow with 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)7.36
EPS Next 2Y18.9%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 80.15, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
269.03% 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.
DP269.03%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
189.77
+2.14 (+1.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change2.84%
Market Cap335.21B
Analysts78.82
Price Target215.89 (13.76%)
Short Float %0.83%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP269.03%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.02%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.84%
Min EPS beat(4)0.02%
Max EPS beat(4)1.28%
EPS beat(8)7
Avg EPS beat(8)0.85%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.82%
PT rev (1m)-0.92%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 13.26 | ||
| P/S | 5.84 | ||
| P/FCF | 21.79 | ||
| P/OCF | 20.44 | ||
| P/B | 236.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.43 |
EPS(TTM)10.27
EY5.41%
EPS(NY)14.31
Fwd EY7.54%
FCF(TTM)8.71
FCFY4.59%
OCF(TTM)9.28
OCFY4.89%
SpS32.48
BVpS0.8
TBVpS-52.28
PEG (NY)0.79
PEG (5Y)7.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROCE | 17.5% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 565.94% | ||
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% | ||
| FCFM | 26.82% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
ROICexc(3y)15.06%
ROICexc(5y)13.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.46%
OM growth 3Y-5.46%
OM growth 5Y-6.07%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 12.17% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 370.28% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.16 |
F-Score6
WACC9.39%
ROIC/WACC1.43
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)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.05%
EBIT Next 3Y14.64%
EBIT Next 5Y10.77%
FCF growth 1Y-34.59%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-32.31%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%