ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
219.16 USD
+0.12 (+0.05%)
219.5 USD
+0.34 (+0.16%)
ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 531 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are concerns on its financial health. ABBV is not valued too expensively and it also shows a decent growth rate. 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.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.71%, ABBV belongs to the top of the industry, outperforming 90.67% of the companies in the same industry.
ABBV has a better Return On Invested Capital (13.81%) than 95.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABBV is in line with the industry average of 15.48%.
The 3 year average ROIC (13.67%) for ABBV is below the current ROIC(13.81%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 6.38%, ABBV belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
In the last couple of years the Profit Margin of ABBV has declined.
Looking at the Operating Margin, with a value of 31.27%, ABBV belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
In the last couple of years the Operating Margin of ABBV has declined.
ABBV's Gross Margin of 70.93% is amongst the best of the industry. ABBV outperforms 82.09% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABBV 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
An Altman-Z score of 2.35 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABBV has a Altman-Z score of 2.35. This is in the better half of the industry: ABBV outperforms 67.54% of its industry peers.
ABBV has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as ABBV would need 3.86 years to pay back of all of its debts.
ABBV has a Debt to FCF ratio of 3.86. This is amongst the best in the industry. ABBV outperforms 93.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.68
WACC8.21%
2.3 Liquidity
ABBV has a Current Ratio of 0.74. 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 0.74, ABBV is not doing good in the industry: 89.93% of the companies in the same industry are doing better.
ABBV has a Quick Ratio of 0.74. 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 worse Quick ratio (0.61) than 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
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.
The Revenue has been growing slightly by 3.71% in the past 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)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
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 13.65% on average per year.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 7.31% on average per year.
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.65%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.31%
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 23.19 indicates a rather expensive valuation of ABBV.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.22% 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 26.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.10, ABBV is valued correctly.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
ABBV is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
ABBV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.22% of the companies in the same industry.
ABBV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.23 | ||
| EV/EBITDA | 16.81 |
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 16.76% in the coming years.
PEG (NY)3.67
PEG (5Y)9.24
EPS Next 2Y19.75%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, 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 95.53. ABBV pays more dividend than 99.07% of the companies in the same industry.
ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 2Y19.75%
EPS Next 3Y16.76%
219.16
+0.12 (+0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.81%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap387.16B
Revenue(TTM)56.33B
Net Income(TTM)3.72B
Analysts78.92
Price Target242.66 (10.72%)
Short Float %1.02%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)4.42%
PT rev (3m)10.64%
EPS NQ rev (1m)-45.74%
EPS NQ rev (3m)-45.69%
EPS NY rev (1m)-12.28%
EPS NY rev (3m)-13.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 15.1 | ||
| P/S | 6.64 | ||
| P/FCF | 21.23 | ||
| P/OCF | 20.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.81 |
EPS(TTM)9.45
EY4.31%
EPS(NY)14.51
Fwd EY6.62%
FCF(TTM)10.32
FCFY4.71%
OCF(TTM)10.92
OCFY4.98%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)3.67
PEG (5Y)9.24
Graham NumberN/A
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%
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-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 | 2.35 |
F-Score6
WACC8.21%
ROIC/WACC1.68
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 Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.65%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.31%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.09%
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%
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 23.19 and the Price/Book (PB) ratio is -2115.62.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.