ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
124.54 USD
-0.66 (-0.53%)
124.54 USD
0 (0%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 184 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 correct valuation and a medium 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.
In the past 5 years ABT has always been profitable.
ABT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABT's Return On Assets of 16.60% is amongst the best of the industry. ABT outperforms 97.28% of its industry peers.
The Return On Equity of ABT (27.43%) is better than 98.37% of its industry peers.
The Return On Invested Capital of ABT (9.90%) is better than 89.13% of its industry peers.
ABT had an Average Return On Invested Capital over the past 3 years of 10.45%. This is in line with the industry average of 8.82%.
| 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
The Profit Margin of ABT (31.88%) is better than 97.83% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
With an excellent Operating Margin value of 18.29%, ABT belongs to the best of the industry, outperforming 89.67% of the companies in the same industry.
ABT's Operating Margin has improved in the last couple of years.
The Gross Margin of ABT (56.19%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ABT has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some value.
The number of shares outstanding for ABT remains at a similar level compared to 1 year ago.
ABT has less shares outstanding than it did 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 5.71. 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 5.71, ABT belongs to the top of the industry, outperforming 80.43% 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.
ABT has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. ABT outperforms 88.04% of its industry peers.
ABT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
ABT has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: ABT outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.17
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
ABT's Current ratio of 1.70 is on the low side compared to the rest of the industry. ABT is outperformed by 70.11% of its industry peers.
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's Quick ratio of 1.24 is on the low side compared to the rest of the industry. ABT is outperformed by 67.93% of its industry peers.
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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.40%, which is quite good.
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.
The Revenue has been growing slightly by 5.63% on average over the past years.
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
Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 7.22% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
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
ABT is valuated rather expensively with a Price/Earnings ratio of 24.96.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 77.17% of the companies listed in the same industry.
ABT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.50.
Based on the Price/Forward Earnings ratio of 21.72, the valuation of ABT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than the industry average as 77.72% of the companies are valued more expensively.
ABT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 75.54% of the companies in the same industry.
78.26% of the companies in the same industry are more expensive than ABT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.31 | ||
| EV/EBITDA | 19.87 |
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.
The excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)3.29
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.20, ABT pays a better dividend. On top of this ABT pays more dividend than 96.20% of the companies listed in the same industry.
ABT's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of ABT grows each year by 11.40%, which is quite nice.
ABT has paid a dividend for at least 10 years, which is a reliable track record.
ABT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
124.54
-0.66 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.25%
Ins Owners0.45%
Ins Owner Change-0.04%
Market Cap216.56B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.81 (17.88%)
Short Float %1.07%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.93%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-0.03%
PT rev (3m)1.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.72 | ||
| P/S | 4.94 | ||
| P/FCF | 31.31 | ||
| P/OCF | 23.75 | ||
| P/B | 4.25 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 19.87 |
EPS(TTM)4.99
EY4.01%
EPS(NY)5.73
Fwd EY4.6%
FCF(TTM)3.98
FCFY3.19%
OCF(TTM)5.24
OCFY4.21%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.18
PEG (5Y)3.29
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 | 5.71 |
F-Score7
WACC8.49%
ROIC/WACC1.17
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 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
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 6 / 10 to ABT.
Can you provide the valuation status for ABBOTT LABORATORIES?
ChartMill assigns a valuation rating of 4 / 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.
How financially healthy is ABBOTT LABORATORIES?
The financial health rating of ABBOTT LABORATORIES (ABT) is 7 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 7 / 10 and the dividend payout ratio is 28.93%.