ABBVIE INC (ABBV) Stock Fundamental Analysis
NYSE:ABBV - New York Stock Exchange, Inc. - US00287Y1091 - Common Stock
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 572 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ABBV had positive earnings in the past year.
In the past year ABBV had a positive cash flow from operations.
In the past 5 years ABBV has always been profitable.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABBV has a Return On Assets of 3.54%. This is amongst the best in the industry. ABBV outperforms 94.16% of its industry peers.
With an excellent Return On Equity value of 84.23%, ABBV belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
The Return On Invested Capital of ABBV (12.75%) is better than 96.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABBV is in line with the industry average of 13.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROIC | 12.75% |
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%
1.3 Margins
The Profit Margin of ABBV (9.15%) is better than 94.69% of its industry peers.
ABBV's Profit Margin has declined in the last couple of years.
ABBV has a Operating Margin of 27.79%. This is amongst the best in the industry. ABBV outperforms 97.70% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a Gross Margin of 67.25%. This is amongst the best in the industry. ABBV outperforms 81.59% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% |
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABBV is creating some 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 an improved debt to assets ratio.
2.2 Solvency
ABBV has an Altman-Z score of 1.90. 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 (1.90) than 70.62% of its industry peers.
The Debt to FCF ratio of ABBV is 4.55, which is a neutral value as it means it would take ABBV, 4.55 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.55, ABBV belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
A Debt/Equity ratio of 9.70 is on the high side and indicates that ABBV has dependencies on debt financing.
ABBV has a Debt to Equity ratio of 9.70. This is amonst the worse of the industry: ABBV underperforms 85.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.2
WACC10.67%
2.3 Liquidity
A Current Ratio of 0.65 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a Current ratio of 0.65. This is amonst the worse of the industry: ABBV underperforms 92.39% of its industry peers.
A Quick Ratio of 0.54 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Quick ratio of 0.54 is on the low side compared to the rest of the industry. ABBV is outperformed by 92.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased by -9.82% in the last year.
Measured over the past 5 years, ABBV shows a small growth in Earnings Per Share. The EPS has been growing by 7.03% on average per year.
Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 0.72% in the last year.
Measured over the past years, ABBV shows a quite strong growth in Revenue. The Revenue has been growing by 10.65% on average per year.
EPS 1Y (TTM)-9.82%
EPS 3Y1.87%
EPS 5Y7.03%
EPS Q2Q%1.69%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Sales Q2Q%3.83%
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 8.66% yearly.
ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.78% yearly.
EPS Next Y0.46%
EPS Next 2Y5.78%
EPS Next 3Y7.97%
EPS Next 5Y8.66%
Revenue Next Year3.72%
Revenue Next 2Y4.75%
Revenue Next 3Y5.64%
Revenue Next 5Y5.78%
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
With a Price/Earnings ratio of 15.74, ABBV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 96.46% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (28.19), we can say ABBV is valued slightly cheaper.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 13.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 96.46% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ABBV to the average of the S&P500 Index (24.37), we can say ABBV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.61 |
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 96.28% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 96.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 15.5 |
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.
PEG (NY)34.42
PEG (5Y)2.24
EPS Next 2Y5.78%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, ABBV has a reasonable but not impressive dividend return.
ABBV's Dividend Yield is rather good when compared to the industry average which is at 9.83. ABBV pays more dividend than 99.11% of the companies in the same industry.
ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 10.41%!
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)10.41%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ABBV pays out 214.51% of its income as dividend. This is not a sustainable payout ratio.
ABBV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP214.51%
EPS Next 2Y5.78%
EPS Next 3Y7.97%
ABBVIE INC
NYSE:ABBV (1/22/2025, 8:04:00 PM)
After market: 169.2 0 (0%)169.2
-3.41 (-1.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.38%
Inst Owner Change-0.27%
Ins Owners0.07%
Ins Owner Change-6.6%
Market Cap299.00B
Analysts79.44
Price Target209.15 (23.61%)
Short Float %0.96%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend5.96
Dividend Growth(5Y)10.41%
DP214.51%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.9%
Max EPS beat(2)1.28%
EPS beat(4)3
Avg EPS beat(4)0.69%
Min EPS beat(4)-1.14%
Max EPS beat(4)1.73%
EPS beat(8)5
Avg EPS beat(8)0.37%
EPS beat(12)7
Avg EPS beat(12)0.25%
EPS beat(16)10
Avg EPS beat(16)0.31%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)1.08%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-0.94%
PT rev (1m)-0.43%
PT rev (3m)3.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.61 | ||
| P/S | 5.38 | ||
| P/FCF | 19.14 | ||
| P/OCF | 18.11 | ||
| P/B | 49.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.5 |
EPS(TTM)10.75
EY6.35%
EPS(NY)12.43
Fwd EY7.35%
FCF(TTM)8.84
FCFY5.23%
OCF(TTM)9.34
OCFY5.52%
SpS31.43
BVpS3.41
TBVpS-54.27
PEG (NY)34.42
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 84.23% | ||
| ROCE | 15.38% | ||
| ROIC | 12.75% | ||
| ROICexc | 13.75% | ||
| ROICexgc | N/A | ||
| OM | 27.79% | ||
| PM (TTM) | 9.15% | ||
| GM | 67.25% | ||
| FCFM | 28.13% |
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%
ROICexc(3y)16.31%
ROICexc(5y)18.27%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.66%
ROCE(5y)16.37%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y19.58%
ROICexc growth 5Y-9.23%
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 10.62% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.4% | ||
| Profit Quality | 307.48% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.9 |
F-Score5
WACC10.67%
ROIC/WACC1.2
Cap/Depr(3y)8.79%
Cap/Depr(5y)13.22%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.49%
Profit Quality(3y)285.09%
Profit Quality(5y)277.33%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y1.87%
EPS 5Y7.03%
EPS Q2Q%1.69%
EPS Next Y0.46%
EPS Next 2Y5.78%
EPS Next 3Y7.97%
EPS Next 5Y8.66%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Sales Q2Q%3.83%
Revenue Next Year3.72%
Revenue Next 2Y4.75%
Revenue Next 3Y5.64%
Revenue Next 5Y5.78%
EBIT growth 1Y-18.54%
EBIT growth 3Y8.2%
EBIT growth 5Y6.52%
EBIT Next Year7.33%
EBIT Next 3Y9.53%
EBIT Next 5Y9.44%
FCF growth 1Y-28.73%
FCF growth 3Y9.53%
FCF growth 5Y11.52%
OCF growth 1Y-26.91%
OCF growth 3Y9.1%
OCF growth 5Y11.21%