ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
125.45 USD
+0.33 (+0.26%)
125.257 USD
-0.19 (-0.15%)
Taking everything into account, ABT scores 7 out of 10 in our fundamental rating. ABT was compared to 184 industry peers in the Health Care Equipment & Supplies industry. ABT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABT has a decent growth rate and is not valued too expensively. 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
In the past year ABT was profitable.
ABT had a positive operating cash flow in the past year.
Each year in the past 5 years ABT has been profitable.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
ABT has a better Return On Assets (16.60%) than 97.33% of its industry peers.
The Return On Equity of ABT (27.43%) is better than 98.40% of its industry peers.
The Return On Invested Capital of ABT (9.90%) is better than 89.30% 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
ABT has a better Profit Margin (31.88%) than 97.86% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
ABT's Operating Margin of 18.29% is amongst the best of the industry. ABT outperforms 89.84% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin (56.19%) which 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 | 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
ABT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ABT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABT has less shares outstanding
ABT has a better debt/assets ratio than last year.
2.2 Solvency
ABT has an Altman-Z score of 5.74. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a better Altman-Z score (5.74) than 80.21% of its industry peers.
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 88.24% of the companies in the same industry.
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 (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.17
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
The Current ratio of ABT (1.70) is worse than 69.52% of its industry peers.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
The Quick ratio of ABT (1.24) is worse than 67.38% 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
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.
Measured over the past 5 years, ABT shows a small growth in Earnings Per Share. The EPS has been growing by 7.59% on average per year.
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
The Earnings Per Share is expected to grow by 9.89% on average over the next years. This is quite good.
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 5Y9.89%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for ABT.
Based on the Price/Earnings ratio, ABT is valued a bit cheaper than 77.01% of the companies in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.88 indicates a rather expensive valuation of ABT.
ABT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 78.07% of the companies in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 21.88 |
4.2 Price Multiples
75.94% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
78.07% 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 | 31.54 | ||
| EV/EBITDA | 20.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)3.31
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 0.20, ABT pays a better dividend. On top of this ABT pays more dividend than 96.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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
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%
125.45
+0.33 (+0.26%)
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 Cap218.14B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.81 (17.03%)
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 | 25.14 | ||
| Fwd PE | 21.88 | ||
| P/S | 4.98 | ||
| P/FCF | 31.54 | ||
| P/OCF | 23.92 | ||
| P/B | 4.28 | ||
| P/tB | 10.2 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)4.99
EY3.98%
EPS(NY)5.73
Fwd EY4.57%
FCF(TTM)3.98
FCFY3.17%
OCF(TTM)5.24
OCFY4.18%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.2
PEG (5Y)3.31
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 | 5.74 |
F-Score7
WACC8.48%
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 7 / 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 8 / 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%.