ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
217.61 USD
-0.73 (-0.33%)
218.982 USD
+1.37 (+0.63%)
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 540 industry peers in the Biotechnology industry. While ABBV belongs to the best of the industry regarding profitability, there are concerns on its financial health. ABBV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ABBV was profitable.
ABBV had a positive operating cash flow in the past year.
In the past 5 years ABBV has always been profitable.
Each year in the past 5 years ABBV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.71%, ABBV belongs to the top of the industry, outperforming 90.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.81%, ABBV belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is below the industry average of 15.95%.
The last Return On Invested Capital (13.81%) for ABBV is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROIC | 13.81% |
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 (6.38%) than 91.48% of its industry peers.
ABBV's Profit Margin has declined in the last couple of years.
ABBV's Operating Margin of 31.27% is amongst the best of the industry. ABBV outperforms 97.04% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a Gross Margin of 70.93%. This is amongst the best in the industry. ABBV outperforms 81.85% of its industry peers.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% |
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 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.
Compared to 1 year ago, ABBV has a worse debt to assets ratio.
2.2 Solvency
ABBV has an Altman-Z score of 2.33. 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 2.33 is fine compared to the rest of the industry. ABBV outperforms 68.89% of its industry peers.
The Debt to FCF ratio of ABBV is 3.86, which is a good value as it means it would take ABBV, 3.86 years of fcf income to pay off all of its debts.
ABBV has a Debt to FCF ratio of 3.86. This is amongst the best in the industry. ABBV outperforms 93.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.48
WACC9.33%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ABBV may have some problems paying its short term obligations.
The Current ratio of ABBV (0.74) is worse than 90.93% of its industry peers.
A Quick Ratio of 0.61 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Quick ratio of 0.61 is on the low side compared to the rest of the industry. ABBV is outperformed by 91.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased by -1.03% 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 2.51% on average per year.
Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
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 13.02% on average per year.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 7.00% on average per year.
EPS Next Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue Next Year8.23%
Revenue Next 2Y8.56%
Revenue Next 3Y8.13%
Revenue Next 5Y7%
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 20.55, the valuation of ABBV can be described as rather expensive.
Based on the Price/Earnings ratio, ABBV is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 15.00, ABBV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, ABBV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 15 |
4.2 Price Multiples
94.44% of the companies in the same industry are more expensive than ABBV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.08 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 16.65% in the coming years.
PEG (NY)0.97
PEG (5Y)8.18
EPS Next 2Y19.74%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 2.98%.
Compared to an average industry Dividend Yield of 178.49, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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 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 304.54% 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.
DP304.54%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
217.61
-0.73 (-0.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.78%
Inst Owner Change-0.55%
Ins Owners0.05%
Ins Owner Change-1.43%
Market Cap384.42B
Analysts78.92
Price Target223.75 (2.82%)
Short Float %0.87%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.04%
Min EPS beat(2)0.95%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.75%
Min EPS beat(4)0.02%
Max EPS beat(4)1.14%
EPS beat(8)7
Avg EPS beat(8)0.76%
EPS beat(12)9
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)0.4%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)2.02%
PT rev (3m)3.25%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.55 | ||
| Fwd PE | 15 | ||
| P/S | 6.59 | ||
| P/FCF | 21.08 | ||
| P/OCF | 19.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)10.59
EY4.87%
EPS(NY)14.51
Fwd EY6.67%
FCF(TTM)10.32
FCFY4.74%
OCF(TTM)10.92
OCFY5.02%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)0.97
PEG (5Y)8.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROCE | 18.72% | ||
| ROIC | 13.81% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 370.81% | ||
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% | ||
| FCFM | 31.27% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 12.62% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.74% | ||
| Profit Quality | 489.9% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.33 |
F-Score6
WACC9.33%
ROIC/WACC1.48
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)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
EPS Next Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.23%
Revenue Next 2Y8.56%
Revenue Next 3Y8.13%
Revenue Next 5Y7%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year19.96%
EBIT Next 3Y14.99%
EBIT Next 5Y11.27%
FCF growth 1Y-26.45%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-24.5%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%