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ABBVIE INC (ABBV) Stock Fundamental Analysis

NYSE:ABBV - New York Stock Exchange, Inc. - US00287Y1091 - Common Stock - Currency: USD

202.08  +1.2 (+0.6%)

After market: 201.11 -0.97 (-0.48%)

Fundamental Rating

5

Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 571 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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7

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.
Of the past 5 years ABBV 4 years were profitable.
ABBV had a positive operating cash flow in 4 of the past 5 years.
ABBV Yearly Net Income VS EBIT VS OCF VS FCFABBV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

1.2 Ratios

With an excellent Return On Assets value of 3.54%, ABBV belongs to the best of the industry, outperforming 94.32% of the companies in the same industry.
ABBV has a better Return On Equity (84.23%) than 99.64% of its industry peers.
ABBV's Return On Invested Capital of 12.75% is amongst the best of the industry. ABBV outperforms 96.45% 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 14.04%.
Industry RankSector 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%
ABBV Yearly ROA, ROE, ROICABBV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100

1.3 Margins

ABBV has a Profit Margin of 9.15%. This is amongst the best in the industry. ABBV outperforms 94.85% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
ABBV has a Operating Margin of 27.79%. This is amongst the best in the industry. ABBV outperforms 97.69% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
ABBV has a Gross Margin of 67.25%. This is amongst the best in the industry. ABBV outperforms 81.71% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
Industry RankSector 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%
ABBV Yearly Profit, Operating, Gross MarginsABBV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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3

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.
ABBV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ABBV Yearly Shares OutstandingABBV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
ABBV Yearly Total Debt VS Total AssetsABBV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

2.2 Solvency

ABBV has an Altman-Z score of 2.12. 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 (2.12) than 71.40% 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.
ABBV has a better Debt to FCF ratio (4.55) than 93.96% of its industry peers.
A Debt/Equity ratio of 9.70 is on the high side and indicates that ABBV has dependencies on debt financing.
ABBV has a worse Debt to Equity ratio (9.70) than 85.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.7
Debt/FCF 4.55
Altman-Z 2.12
ROIC/WACC1.39
WACC9.16%
ABBV Yearly LT Debt VS Equity VS FCFABBV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B

2.3 Liquidity

A Current Ratio of 0.65 indicates that ABBV may have some problems paying its short term obligations.
With a Current ratio value of 0.65, ABBV is not doing good in the industry: 92.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that ABBV may have some problems paying its short term obligations.
The Quick ratio of ABBV (0.54) is worse than 92.54% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.54
ABBV Yearly Current Assets VS Current LiabilitesABBV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

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3

3. Growth

3.1 Past

ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.91%.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
EPS 1Y (TTM)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.6%

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 12.19% yearly.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y23.75%
EPS Next 2Y18.58%
EPS Next 3Y16.17%
EPS Next 5Y12.19%
Revenue Next Year6.04%
Revenue Next 2Y6.9%
Revenue Next 3Y6.9%
Revenue Next 5Y5.94%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
ABBV Yearly Revenue VS EstimatesABBV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
ABBV Yearly EPS VS EstimatesABBV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.97, which indicates a rather expensive current valuation of ABBV.
Based on the Price/Earnings ratio, ABBV is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (29.63), we can say ABBV is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.14, which indicates a correct valuation of ABBV.
95.56% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.97
Fwd PE 16.14
ABBV Price Earnings VS Forward Price EarningsABBV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 96.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 95.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.86
EV/EBITDA 17.6
ABBV Per share dataABBV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

4.3 Compensation for Growth

ABBV's 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.
ABBV's earnings are expected to grow with 16.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)7.95
EPS Next 2Y18.58%
EPS Next 3Y16.17%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.39%, 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 9.08. ABBV pays more dividend than 99.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, ABBV pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.39%

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
ABBV Yearly Dividends per shareABBV Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

214.51% of the earnings are spent on dividend by ABBV. This is not a sustainable payout ratio.
ABBV's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP214.51%
EPS Next 2Y18.58%
EPS Next 3Y16.17%
ABBV Yearly Income VS Free CF VS DividendABBV Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B
ABBV Dividend Payout.ABBV Dividend Payout, showing the Payout Ratio.ABBV Dividend Payout.PayoutRetained Earnings

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ABBVIE INC

NYSE:ABBV (2/21/2025, 8:04:00 PM)

After market: 201.11 -0.97 (-0.48%)

202.08

+1.2 (+0.6%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)01-31 2025-01-31/bmo
Earnings (Next)04-24 2025-04-24/bmo
Inst Owners73.38%
Inst Owner Change1.19%
Ins Owners0.07%
Ins Owner Change-3.67%
Market Cap357.10B
Analysts79.43
Price Target207.9 (2.88%)
Short Float %1.07%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 3.39%
Yearly Dividend5.96
Dividend Growth(5Y)10.41%
DP214.51%
Div Incr Years11
Div Non Decr Years11
Ex-Date04-15 2025-04-15 (1.64)
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)-0.6%
PT rev (3m)0.93%
EPS NQ rev (1m)-28.97%
EPS NQ rev (3m)-28.97%
EPS NY rev (1m)-7.8%
EPS NY rev (3m)-7.81%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 19.97
Fwd PE 16.14
P/S 6.43
P/FCF 22.86
P/OCF 21.63
P/B 59.2
P/tB N/A
EV/EBITDA 17.6
EPS(TTM)10.12
EY5.01%
EPS(NY)12.52
Fwd EY6.2%
FCF(TTM)8.84
FCFY4.37%
OCF(TTM)9.34
OCFY4.62%
SpS31.43
BVpS3.41
TBVpS-54.27
PEG (NY)0.84
PEG (5Y)7.95
Profitability
Industry RankSector 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 RankSector 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 2.12
F-Score5
WACC9.16%
ROIC/WACC1.39
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)-8.91%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-22.58%
EPS Next Y23.75%
EPS Next 2Y18.58%
EPS Next 3Y16.17%
EPS Next 5Y12.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.6%
Revenue Next Year6.04%
Revenue Next 2Y6.9%
Revenue Next 3Y6.9%
Revenue Next 5Y5.94%
EBIT growth 1Y-18.54%
EBIT growth 3Y8.2%
EBIT growth 5Y6.52%
EBIT Next Year2.48%
EBIT Next 3Y10.11%
EBIT Next 5Y9.2%
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%