ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
220.08 USD
-4.05 (-1.81%)
220.914 USD
+0.83 (+0.38%)
Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 530 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV has a correct valuation and a medium growth rate. Finally 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.
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 88.87% of its industry peers.
ABBV has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. ABBV outperforms 96.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABBV is below the industry average of 18.28%.
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
ABBV has a better Profit Margin (3.94%) than 89.06% of its industry peers.
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 96.98% of the companies in the same industry.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a better Gross Margin (71.16%) than 82.08% of its industry peers.
ABBV's Gross Margin has declined in the last couple of years.
| 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.
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.
Compared to 1 year ago, ABBV has a worse debt to assets ratio.
2.2 Solvency
ABBV has an Altman-Z score of 2.43. 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 2.43 is fine compared to the rest of the industry. ABBV outperforms 67.17% of its industry peers.
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.
The Debt to FCF ratio of ABBV (3.49) is better than 92.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.87
WACC8.37%
2.3 Liquidity
ABBV has a Current 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 Current ratio of 0.72. This is amonst the worse of the industry: ABBV underperforms 88.11% 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.
The Quick ratio of ABBV (0.60) is worse than 88.87% 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.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
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)-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
Based on estimates for the next years, ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.69% on average per year.
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 Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.69%
Revenue Next Year8.74%
Revenue Next 2Y9.13%
Revenue Next 3Y8.7%
Revenue Next 5Y7.42%
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
With a Price/Earnings ratio of 23.29, ABBV is valued on the expensive side.
93.96% of the companies in the same industry are more expensive than ABBV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ABBV is valued at the same level.
A Price/Forward Earnings ratio of 15.14 indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 95.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 94.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 95.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 16.28 |
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.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 16.87% in the coming years.
PEG (NY)3.19
PEG (5Y)9.28
EPS Next 2Y19.85%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, ABBV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.20, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.87% of the companies listed in the same industry.
ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
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.
The dividend of ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP489.69%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
220.08
-4.05 (-1.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners75.04%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap388.96B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts77.89
Price Target249.74 (13.48%)
Short Float %1.02%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)0.46%
PT rev (3m)7.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 15.14 | ||
| P/S | 6.52 | ||
| P/FCF | 19.76 | ||
| P/OCF | 18.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.28 |
EPS(TTM)9.45
EY4.29%
EPS(NY)14.54
Fwd EY6.6%
FCF(TTM)11.14
FCFY5.06%
OCF(TTM)11.8
OCFY5.36%
SpS33.75
BVpS-1.49
TBVpS-52.38
PEG (NY)3.19
PEG (5Y)9.28
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 | 2.43 |
F-Score7
WACC8.37%
ROIC/WACC1.87
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 Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.69%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.74%
Revenue Next 2Y9.13%
Revenue Next 3Y8.7%
Revenue Next 5Y7.42%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year9.3%
EBIT Next 3Y15.61%
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.
What is the valuation status of ABBVIE INC (ABBV) stock?
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.
Can you provide the PE and PB ratios for ABBV stock?
The Price/Earnings (PE) ratio for ABBVIE INC (ABBV) is 23.29 and the Price/Book (PB) ratio is -147.22.
What is the expected EPS growth for ABBVIE INC (ABBV) stock?
The Earnings per Share (EPS) of ABBVIE INC (ABBV) is expected to grow by 7.3% in the next year.