ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
121.76 USD
-1.77 (-1.43%)
121.8 USD
+0.04 (+0.03%)
Taking everything into account, ABT scores 7 out of 10 in our fundamental rating. ABT was compared to 186 industry peers in the Health Care Equipment & Supplies industry. ABT gets an excellent profitability rating and is at the same time showing great financial health properties. ABT is not valued too expensively and it also shows a decent growth rate. Finally ABT also has an excellent dividend rating. These ratings could make ABT a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
- ABT had positive earnings in the past year.
- In the past year ABT had a positive cash flow from operations.
- ABT had positive earnings in each of the past 5 years.
- Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
- ABT's Return On Assets of 16.60% is amongst the best of the industry. ABT outperforms 97.31% of its industry peers.
- Looking at the Return On Equity, with a value of 27.43%, ABT belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
- ABT's Return On Invested Capital of 9.90% is amongst the best of the industry. ABT outperforms 89.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ABT is in line with the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROIC | 9.9% |
ROA(3y)11.2%
ROA(5y)9.84%
ROE(3y)20.61%
ROE(5y)19.06%
ROIC(3y)10.45%
ROIC(5y)10.18%
1.3 Margins
- Looking at the Profit Margin, with a value of 31.88%, ABT belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABT has grown nicely.
- ABT has a Operating Margin of 18.29%. This is amongst the best in the industry. ABT outperforms 89.78% of its industry peers.
- In the last couple of years the Operating Margin of ABT has grown nicely.
- ABT's Gross Margin of 56.19% is in line compared to the rest of the industry. ABT outperforms 54.84% of its industry peers.
- ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.29% | ||
| PM (TTM) | 31.88% | ||
| GM | 56.19% |
OM growth 3Y-5.79%
OM growth 5Y2.63%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.89%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABT is creating some value.
- ABT has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for ABT has been reduced compared to 5 years ago.
- Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
- ABT has an Altman-Z score of 5.62. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.62, ABT is in the better half of the industry, outperforming 79.57% of the companies in the same industry.
- The Debt to FCF ratio of ABT is 1.87, which is an excellent value as it means it would take ABT, only 1.87 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.87, ABT belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
- The Debt to Equity ratio of ABT (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.62 |
ROIC/WACC1
WACC9.9%
2.3 Liquidity
- ABT has a Current Ratio of 1.70. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.70, ABT is not doing good in the industry: 68.28% of the companies in the same industry are doing better.
- ABT has a Quick Ratio of 1.24. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
- ABT has a Quick ratio of 1.24. This is in the lower half of the industry: ABT underperforms 65.59% of its industry peers.
- ABT does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.40% over the past year.
- ABT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
- Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
- Measured over the past years, ABT shows a small growth in Revenue. The Revenue has been growing by 5.63% on average per year.
EPS 1Y (TTM)10.4%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%7.44%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
3.2 Future
- ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.68% yearly.
- The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.68%
Revenue Next Year6.44%
Revenue Next 2Y7.21%
Revenue Next 3Y7.35%
Revenue Next 5Y7.22%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.40, the valuation of ABT can be described as rather expensive.
- Based on the Price/Earnings ratio, ABT is valued cheaper than 80.11% of the companies in the same industry.
- ABT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- ABT is valuated rather expensively with a Price/Forward Earnings ratio of 21.24.
- 80.65% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ABT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than the industry average as 77.96% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 79.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.61 | ||
| EV/EBITDA | 19.43 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABT does not grow enough to justify the current Price/Earnings ratio.
- ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)3.22
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
- ABT has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.19, ABT pays a better dividend. On top of this ABT pays more dividend than 96.77% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
- The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
- ABT has paid a dividend for at least 10 years, which is a reliable track record.
- ABT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 28.93% of the earnings are spent on dividend by ABT. This is a low number and sustainable payout ratio.
- The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
121.76
-1.77 (-1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-15 2025-10-15/bmo
Earnings (Next)01-22 2026-01-22/amc
Inst Owners81.33%
Inst Owner Change0.16%
Ins Owners0.45%
Ins Owner Change-0.06%
Market Cap211.72B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.96 (20.7%)
Short Float %1.01%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.93%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-15 2026-01-15 (0.63)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.82%
Min EPS beat(2)-1.06%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-0.52%
Min EPS beat(4)-1.16%
Max EPS beat(4)0.73%
EPS beat(8)3
Avg EPS beat(8)0.07%
EPS beat(12)7
Avg EPS beat(12)1.63%
EPS beat(16)11
Avg EPS beat(16)5.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-0.75%
Revenue beat(12)4
Avg Revenue beat(12)0.15%
Revenue beat(16)8
Avg Revenue beat(16)1.85%
PT rev (1m)0.1%
PT rev (3m)1.65%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.24 | ||
| P/S | 4.83 | ||
| P/FCF | 30.61 | ||
| P/OCF | 23.22 | ||
| P/B | 4.16 | ||
| P/tB | 9.9 | ||
| EV/EBITDA | 19.43 |
EPS(TTM)4.99
EY4.1%
EPS(NY)5.73
Fwd EY4.71%
FCF(TTM)3.98
FCFY3.27%
OCF(TTM)5.24
OCFY4.31%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.13
PEG (5Y)3.22
Graham Number57.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROCE | 11.52% | ||
| ROIC | 9.9% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 21.33% | ||
| OM | 18.29% | ||
| PM (TTM) | 31.88% | ||
| GM | 56.19% | ||
| FCFM | 15.78% |
ROA(3y)11.2%
ROA(5y)9.84%
ROE(3y)20.61%
ROE(5y)19.06%
ROIC(3y)10.45%
ROIC(5y)10.18%
ROICexc(3y)12.18%
ROICexc(5y)11.89%
ROICexgc(3y)32.65%
ROICexgc(5y)35.03%
ROCE(3y)12.16%
ROCE(5y)11.86%
ROICexgc growth 3Y-24.08%
ROICexgc growth 5Y-8.19%
ROICexc growth 3Y-10.71%
ROICexc growth 5Y6.04%
OM growth 3Y-5.79%
OM growth 5Y2.63%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.89%
GM growth 5Y-1.07%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 70.33% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.77% | ||
| Profit Quality | 49.49% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.62 |
F-Score7
WACC9.9%
ROIC/WACC1
Cap/Depr(3y)63.63%
Cap/Depr(5y)61.92%
Cap/Sales(3y)4.94%
Cap/Sales(5y)5.1%
Profit Quality(3y)82.78%
Profit Quality(5y)99.6%
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%7.44%
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.68%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.21%
Revenue Next 3Y7.35%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.08%
EBIT Next 3Y15.42%
EBIT Next 5Y13.66%
FCF growth 1Y53.98%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y39.24%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%
ABBOTT LABORATORIES / ABT FAQ
What is the fundamental rating for ABT stock?
ChartMill assigns a fundamental rating of 7 / 10 to ABT.
What is the valuation status of ABBOTT LABORATORIES (ABT) stock?
ChartMill assigns a valuation rating of 5 / 10 to ABBOTT LABORATORIES (ABT). This can be considered as Fairly Valued.
What is the profitability of ABT stock?
ABBOTT LABORATORIES (ABT) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ABBOTT LABORATORIES (ABT) stock?
The Price/Earnings (PE) ratio for ABBOTT LABORATORIES (ABT) is 24.4 and the Price/Book (PB) ratio is 4.16.
Can you provide the expected EPS growth for ABT stock?
The Earnings per Share (EPS) of ABBOTT LABORATORIES (ABT) is expected to grow by 11.44% in the next year.