ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - NYSE:ABT - US0028241000 - Common Stock
136.04 USD
+1.47 (+1.09%)
136 USD
-0.04 (-0.03%)
Overall ABT gets a fundamental rating of 7 out of 10. We evaluated ABT against 191 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 has a decent growth rate and is not valued too expensively. This makes ABT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ABT had positive earnings in the past year.
ABT had a positive operating cash flow in the past year.
Each year in the past 5 years ABT has been profitable.
In the past 5 years ABT always reported a positive cash flow from operatings.
1.2 Ratios
ABT's Return On Assets of 16.64% is amongst the best of the industry. ABT outperforms 96.86% of its industry peers.
With an excellent Return On Equity value of 27.65%, ABT belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
The Return On Invested Capital of ABT (9.37%) is better than 89.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABT is in line with the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROIC | 9.37% |
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
ABT has a better Profit Margin (32.43%) than 96.86% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
The Operating Margin of ABT (17.85%) is better than 88.48% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
The Gross Margin of ABT (56.20%) is comparable to the rest of the industry.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.85% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.2% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some value.
ABT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABT has less shares outstanding
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.98 indicates that ABT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.98, ABT belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
ABT has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
ABT has a better Debt to FCF ratio (1.98) than 89.53% of its industry peers.
ABT has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
ABT has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.11
WACC8.45%
2.3 Liquidity
ABT has a Current Ratio of 1.82. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.82, ABT is doing worse than 67.54% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, ABT is doing worse than 64.40% of the companies in the same industry.
The current and quick ratio evaluation for ABT 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 | 1.82 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.11%, which is quite good.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.85%.
The Revenue has been growing slightly by 5.63% on average over the past years.
EPS 1Y (TTM)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
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 9.87% yearly.
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y11.28%
EPS Next 2Y10.75%
EPS Next 3Y10.76%
EPS Next 5Y9.87%
Revenue Next Year6.48%
Revenue Next 2Y7.16%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
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
With a Price/Earnings ratio of 27.76, ABT can be considered very expensive at the moment.
75.92% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. ABT is around the same levels.
Based on the Price/Forward Earnings ratio of 23.75, the valuation of ABT can be described as rather expensive.
76.44% 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 22.86, ABT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.75 |
4.2 Price Multiples
ABT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABT is cheaper than 74.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 80.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.95 | ||
| EV/EBITDA | 22.15 |
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)2.46
PEG (5Y)3.66
EPS Next 2Y10.75%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.69. ABT pays more dividend than 95.81% of the companies in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
ABT has been paying a dividend for at least 10 years, so it has 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
ABT pays out 28.42% of its income as dividend. This is a sustainable payout ratio.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.42%
EPS Next 2Y10.75%
EPS Next 3Y10.76%
136.04
+1.47 (+1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.67%
Inst Owner Change-0.46%
Ins Owners0.45%
Ins Owner Change0.07%
Market Cap236.77B
Analysts78.86
Price Target144.34 (6.1%)
Short Float %1.03%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.08%
Min EPS beat(2)-0.58%
Max EPS beat(2)0.73%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-1.16%
Max EPS beat(4)0.73%
EPS beat(8)4
Avg EPS beat(8)0.55%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-0.29%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)2.75%
PT rev (1m)0.06%
PT rev (3m)0.11%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.75 | ||
| P/S | 5.49 | ||
| P/FCF | 34.95 | ||
| P/OCF | 26.2 | ||
| P/B | 4.68 | ||
| P/tB | 11.44 | ||
| EV/EBITDA | 22.15 |
EPS(TTM)4.9
EY3.6%
EPS(NY)5.73
Fwd EY4.21%
FCF(TTM)3.89
FCFY2.86%
OCF(TTM)5.19
OCFY3.82%
SpS24.77
BVpS29.05
TBVpS11.89
PEG (NY)2.46
PEG (5Y)3.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROCE | 10.91% | ||
| ROIC | 9.37% | ||
| ROICexc | 10.45% | ||
| ROICexgc | 19.79% | ||
| OM | 17.85% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.2% | ||
| FCFM | 15.72% |
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%
ROICexcg growth 3Y-24.08%
ROICexcg 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 72.02% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.38% | ||
| Profit Quality | 48.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.98 |
F-Score7
WACC8.45%
ROIC/WACC1.11
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)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
EPS Next Y11.28%
EPS Next 2Y10.75%
EPS Next 3Y10.76%
EPS Next 5Y9.87%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
Revenue Next Year6.48%
Revenue Next 2Y7.16%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
EBIT growth 1Y13.84%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.75%
EBIT Next 3Y15.65%
EBIT Next 5Y12.28%
FCF growth 1Y23.45%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y21.27%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%