ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
222.99 USD
-0.13 (-0.06%)
222.99 USD
0 (0%)
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 531 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are concerns on its financial health. ABBV has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years ABBV has been profitable.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 1.75%, ABBV belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
ABBV has a better Return On Invested Capital (15.64%) than 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 18.22%.
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 89.08% of the companies in the same industry.
ABBV's Profit Margin has declined in the last couple of years.
ABBV's Operating Margin of 33.05% is amongst the best of the industry. ABBV outperforms 96.99% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
The Gross Margin of ABBV (71.16%) is better than 81.92% 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.
ABBV has more shares outstanding than it did 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 2.42. 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 has a better Altman-Z score (2.42) than 65.91% 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 92.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.87
WACC8.34%
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.
With a Current ratio value of 0.72, ABBV is not doing good in the industry: 90.02% of the companies in the same industry are doing better.
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 90.96% of its industry peers.
| 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.
The Revenue has been growing slightly by 7.40% in the past 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
ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.69% yearly.
The Revenue is expected to grow by 7.42% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 23.60, the valuation of ABBV can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 93.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. ABBV is around the same levels.
A Price/Forward Earnings ratio of 15.35 indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 96.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, ABBV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 94.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 94.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 16.22 |
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.
ABBV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 16.75% in the coming years.
PEG (NY)3.24
PEG (5Y)9.4
EPS Next 2Y19.81%
EPS Next 3Y16.75%
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 66.57, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.06% of the companies listed in the same industry.
ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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 paid a dividend for at least 10 years, which is 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 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 2Y19.81%
EPS Next 3Y16.75%
222.99
-0.13 (-0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.96%
Inst Owner Change-0.63%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap394.11B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts77.89
Price Target248.59 (11.48%)
Short Float %1.06%
Short Ratio3.09
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)2.44%
PT rev (3m)11.92%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.91%
EPS NY rev (3m)-11.53%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 15.35 | ||
| P/S | 6.61 | ||
| P/FCF | 20.02 | ||
| P/OCF | 18.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.22 |
EPS(TTM)9.45
EY4.24%
EPS(NY)14.53
Fwd EY6.51%
FCF(TTM)11.14
FCFY4.99%
OCF(TTM)11.8
OCFY5.29%
SpS33.75
BVpS-1.49
TBVpS-52.38
PEG (NY)3.24
PEG (5Y)9.4
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 | 2.42 |
F-Score7
WACC8.34%
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 Y7.28%
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 23.6 and the Price/Book (PB) ratio is -149.17.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.