ABBVIE INC (ABBV)
US00287Y1091 - Common Stock
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 565 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are 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.
ABBV had a positive operating cash flow in the past year.
ABBV had positive earnings in each of the past 5 years.
In the past 5 years ABBV always reported a positive cash flow from operatings.
1.2 Ratios
ABBV has a better Return On Assets (3.54%) than 93.95% of its industry peers.
ABBV's Return On Equity of 84.23% is amongst the best of the industry. ABBV outperforms 99.47% of its industry peers.
The Return On Invested Capital of ABBV (12.75%) is better than 96.62% 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 13.59%.
| 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
ABBV's Profit Margin of 9.15% is amongst the best of the industry. ABBV outperforms 94.66% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
The Operating Margin of ABBV (27.79%) is better than 97.86% 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 81.49% 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
ABBV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
ABBV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ABBV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.92 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 (1.92) than 70.64% of its industry peers.
ABBV has a debt to FCF ratio of 4.55. This is a neutral value as ABBV would need 4.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.55, ABBV belongs to the top of the industry, outperforming 93.95% of the companies in the same industry.
ABBV has a Debt/Equity ratio of 9.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.70, ABBV is not doing good in the industry: 84.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.7 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.21
WACC10.54%
2.3 Liquidity
A Current Ratio of 0.65 indicates that ABBV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.65, ABBV is doing worse than 91.99% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that ABBV may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, ABBV is not doing good in the industry: 92.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.82%.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.72%.
The Revenue has been growing by 10.65% on average over the past years. This is quite good.
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
Based on estimates for the next years, ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
EPS Next Y0.46%
EPS Next 2Y5.78%
EPS Next 3Y7.97%
EPS Next 5Y8.61%
Revenue Next Year3.72%
Revenue Next 2Y4.72%
Revenue Next 3Y5.6%
Revenue Next 5Y5.74%
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
The Price/Earnings ratio is 16.45, which indicates a correct valuation of ABBV.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 96.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (27.17), we can say ABBV is valued slightly cheaper.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 14.23.
96.80% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.68. ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 96.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 96.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 15.72 |
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.
PEG (NY)35.98
PEG (5Y)2.34
EPS Next 2Y5.78%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.82%.
ABBV's Dividend Yield is rather good when compared to the industry average which is at 8.71. ABBV pays more dividend than 99.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ABBV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 10.41%!
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)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.
The dividend of ABBV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP214.51%
EPS Next 2Y5.78%
EPS Next 3Y7.97%
ABBVIE INC
NYSE:ABBV (12/23/2024, 12:58:57 PM)
176.864
+1.28 (+0.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.38%
Inst Owner Change0.67%
Ins Owners0.07%
Ins Owner Change-6.86%
Market Cap312.54B
Analysts80
Price Target210.06 (18.77%)
Short Float %1.09%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)1.98%
PT rev (3m)4.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-0.01%
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)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 14.23 | ||
| P/S | 5.63 | ||
| P/FCF | 20.01 | ||
| P/OCF | 18.93 | ||
| P/B | 51.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)10.75
EY6.08%
EPS(NY)12.43
Fwd EY7.03%
FCF(TTM)8.84
FCFY5%
OCF(TTM)9.34
OCFY5.28%
SpS31.43
BVpS3.41
TBVpS-54.27
PEG (NY)35.98
PEG (5Y)2.34
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 | 1.92 |
F-Score5
WACC10.54%
ROIC/WACC1.21
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 5Y8.61%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Sales Q2Q%3.83%
Revenue Next Year3.72%
Revenue Next 2Y4.72%
Revenue Next 3Y5.6%
Revenue Next 5Y5.74%
EBIT growth 1Y-18.54%
EBIT growth 3Y8.2%
EBIT growth 5Y6.52%
EBIT Next Year11.37%
EBIT Next 3Y9.58%
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%