ABBOTT LABORATORIES (ABL.DE) Stock Fundamental Analysis
FRA:ABL - Deutsche Boerse Ag - US0028241000 - Common Stock - Currency: EUR
Overall ABL gets a fundamental rating of 6 out of 10. We evaluated ABL against 55 industry peers in the Health Care Equipment & Supplies industry. ABL gets an excellent profitability rating and is at the same time showing great financial health properties. ABL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABL was profitable.
ABL had a positive operating cash flow in the past year.
Each year in the past 5 years ABL has been profitable.
Each year in the past 5 years ABL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.76%, ABL belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.49%, ABL belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.92%, ABL belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABL is above the industry average of 8.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROIC | 9.92% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
1.3 Margins
The Profit Margin of ABL (13.99%) is better than 86.27% of its industry peers.
ABL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.90%, ABL belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
ABL's Operating Margin has improved in the last couple of years.
ABL's Gross Margin of 55.81% is in line compared to the rest of the industry. ABL outperforms 50.98% of its industry peers.
In the last couple of years the Gross Margin of ABL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% |
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABL is still creating some value.
ABL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABL has less shares outstanding
The debt/assets ratio for ABL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.34 indicates that ABL is not in any danger for bankruptcy at the moment.
ABL has a Altman-Z score of 5.34. This is amongst the best in the industry. ABL outperforms 86.27% of its industry peers.
The Debt to FCF ratio of ABL is 2.31, which is a good value as it means it would take ABL, 2.31 years of fcf income to pay off all of its debts.
ABL has a better Debt to FCF ratio (2.31) than 82.35% of its industry peers.
ABL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ABL has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.12
WACC8.84%
2.3 Liquidity
ABL has a Current Ratio of 1.60. This is a normal value and indicates that ABL is financially healthy and should not expect problems in meeting its short term obligations.
ABL has a Current ratio of 1.60. This is comparable to the rest of the industry: ABL outperforms 41.18% of its industry peers.
ABL has a Quick Ratio of 1.14. This is a normal value and indicates that ABL is financially healthy and should not expect problems in meeting its short term obligations.
ABL has a Quick ratio of 1.14. This is comparable to the rest of the industry: ABL outperforms 52.94% of its industry peers.
The current and quick ratio evaluation for ABL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.61% over the past year.
Measured over the past years, ABL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
ABL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
ABL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.58% yearly.
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y9.04%
EPS Q2Q%6.14%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Sales Q2Q%4.85%
3.2 Future
The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
Based on estimates for the next years, ABL will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y6.36%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
EPS Next 5Y8.56%
Revenue Next Year4.76%
Revenue Next 2Y5.92%
Revenue Next 3Y6.39%
Revenue Next 5Y6.43%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.41, ABL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ABL is valued a bit cheaper than 68.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABL to the average of the S&P500 Index (28.19), we can say ABL is valued inline with the index average.
The Price/Forward Earnings ratio is 22.91, which indicates a rather expensive current valuation of ABL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABL is on the same level as its industry peers.
ABL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.41 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
ABL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABL indicates a somewhat cheap valuation: ABL is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.93 | ||
| EV/EBITDA | 21.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ABL may justify a higher PE ratio.
PEG (NY)4.15
PEG (5Y)2.92
EPS Next 2Y8.35%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
ABL has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.50, ABL pays a better dividend. On top of this ABL pays more dividend than 80.39% of the companies listed in the same industry.
ABL's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
On average, the dividend of ABL grows each year by 12.67%, which is quite nice.
Dividend Growth(5Y)12.67%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
65.30% of the earnings are spent on dividend by ABL. This is not a sustainable payout ratio.
ABL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.3%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
ABBOTT LABORATORIES
FRA:ABL (1/22/2025, 7:00:00 PM)
114.34
+2.86 (+2.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners77.54%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap198.32B
Analysts80.63
Price Target128.15 (12.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend2.05
Dividend Growth(5Y)12.67%
DP65.3%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.94%
Min EPS beat(2)-0.34%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-0.89%
Max EPS beat(4)2.22%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)10
Avg EPS beat(12)7.76%
EPS beat(16)14
Avg EPS beat(16)10.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)-0.15%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)2.82%
Revenue beat(16)11
Avg Revenue beat(16)3.44%
PT rev (1m)1.6%
PT rev (3m)12.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.41 | ||
| Fwd PE | 22.91 | ||
| P/S | 5.02 | ||
| P/FCF | 31.93 | ||
| P/OCF | 23.73 | ||
| P/B | 5.2 | ||
| P/tB | 23.57 | ||
| EV/EBITDA | 21.01 |
EPS(TTM)4.33
EY3.79%
EPS(NY)4.99
Fwd EY4.37%
FCF(TTM)3.58
FCFY3.13%
OCF(TTM)4.82
OCFY4.21%
SpS22.76
BVpS21.97
TBVpS4.85
PEG (NY)4.15
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROCE | 11.71% | ||
| ROIC | 9.92% | ||
| ROICexc | 11.41% | ||
| ROICexgc | 28.55% | ||
| OM | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% | ||
| FCFM | 15.74% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
ROICexc(3y)13.36%
ROICexc(5y)11.22%
ROICexgc(3y)40.78%
ROICexgc(5y)36.67%
ROCE(3y)13.31%
ROCE(5y)11.41%
ROICexcg growth 3Y-1.4%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y8.47%
ROICexc growth 5Y13.43%
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 69.54% | ||
| Cap/Sales | 5.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.67% | ||
| Profit Quality | 112.47% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.34 |
F-Score8
WACC8.84%
ROIC/WACC1.12
Cap/Depr(3y)58.52%
Cap/Depr(5y)59.07%
Cap/Sales(3y)4.65%
Cap/Sales(5y)5.07%
Profit Quality(3y)107.75%
Profit Quality(5y)114.52%
High Growth Momentum
Growth
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y9.04%
EPS Q2Q%6.14%
EPS Next Y6.36%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
EPS Next 5Y8.56%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Sales Q2Q%4.85%
Revenue Next Year4.76%
Revenue Next 2Y5.92%
Revenue Next 3Y6.39%
Revenue Next 5Y6.43%
EBIT growth 1Y14.09%
EBIT growth 3Y7.37%
EBIT growth 5Y12.5%
EBIT Next Year20.74%
EBIT Next 3Y13.51%
EBIT Next 5Y8.99%
FCF growth 1Y-24.06%
FCF growth 3Y-4.03%
FCF growth 5Y0.62%
OCF growth 1Y-15.44%
OCF growth 3Y-2.78%
OCF growth 5Y2.88%