ABBVIE INC (ABBV) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ABBV • US00287Y1091
224.845 USD
+1.84 (+0.82%)
Last: Feb 2, 2026, 01:04 PM
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 524 industry peers in the Biotechnology industry. While ABBV has a great profitability rating, there are quite some concerns on its financial health. ABBV has a decent growth rate and is not valued too expensively. 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
- The Return On Assets of ABBV (1.75%) is better than 88.93% of its industry peers.
- The Return On Invested Capital of ABBV (15.64%) is better than 96.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ABBV is below the industry average of 18.07%.
- 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 89.12% 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 97.14% of the companies in the same industry.
- ABBV's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 71.16%, ABBV belongs to the best of the industry, outperforming 82.06% of the companies in the same industry.
- 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.
- ABBV has about the same amout of shares outstanding than it did 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
- An Altman-Z score of 2.42 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ABBV has a better Altman-Z score (2.42) than 67.94% 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 92.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.84
WACC8.48%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that ABBV may have some problems paying its short term obligations.
- ABBV has a Current ratio of 0.72. This is amonst the worse of the industry: ABBV underperforms 87.98% of its industry peers.
- A Quick Ratio of 0.60 indicates that ABBV may have some problems paying its short term obligations.
- With a Quick ratio value of 0.60, ABBV is not doing good in the industry: 88.74% 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
- 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%.
- The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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 13.67% on average over the next years. This is quite good.
- ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y0.09%
EPS Next 2Y19.77%
EPS Next 3Y17.02%
EPS Next 5Y13.67%
Revenue Next Year8.75%
Revenue Next 2Y9.23%
Revenue Next 3Y8.83%
Revenue Next 5Y7.5%
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 23.79 indicates a rather expensive valuation of ABBV.
- ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.08% of the companies in the same industry.
- ABBV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.49, which indicates a correct valuation of ABBV.
- Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 95.61% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ABBV to the average of the S&P500 Index (25.57), we can say ABBV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 94.66% of the companies in the same industry.
- 95.42% 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 | 20.19 | ||
| EV/EBITDA | 16.21 |
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 17.02% in the coming years.
PEG (NY)275.41
PEG (5Y)9.48
EPS Next 2Y19.77%
EPS Next 3Y17.02%
5. Dividend
5.1 Amount
- ABBV has a Yearly Dividend Yield of 3.14%.
- Compared to an average industry Dividend Yield of 1.12, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.05% 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
- 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 2Y19.77%
EPS Next 3Y17.02%
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 23.79 and the Price/Book (PB) ratio is -150.41.
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 0.09% in the next year.