ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
106.28 USD
+0.23 (+0.22%)
Overall ABT gets a fundamental rating of 6 out of 10. We evaluated ABT against 184 industry peers in the Health Care Equipment & Supplies industry. While ABT has a great profitability rating, there are some minor concerns on its financial health. ABT is not valued too expensively and it also shows a decent growth rate. ABT also has an excellent dividend rating. These ratings could make ABT a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year ABT was profitable.
- 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 4 of the past 5 years.
1.2 Ratios
- ABT has a Return On Assets of 16.60%. This is amongst the best in the industry. ABT outperforms 97.28% of its industry peers.
- ABT has a Return On Equity of 27.43%. This is amongst the best in the industry. ABT outperforms 98.37% of its industry peers.
- ABT has a better Return On Invested Capital (8.88%) than 88.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROIC | 8.88% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- ABT's Profit Margin of 31.88% is amongst the best of the industry. ABT outperforms 98.37% of its industry peers.
- ABT's Profit Margin has improved in the last couple of years.
- ABT has a better Operating Margin (18.29%) than 89.67% of its industry peers.
- ABT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 56.19%, ABT perfoms like the industry average, outperforming 54.89% of the companies in the same 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-0.87%
OM growth 5Y4.37%
PM growth 3Y-2.51%
PM growth 5Y2.53%
GM growth 3Y0.26%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABT is destroying value.
- There is no outstanding debt for ABT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 5.13 indicates that ABT is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.13, ABT is doing good in the industry, outperforming 77.72% 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's Debt to FCF ratio of 1.87 is amongst the best of the industry. ABT outperforms 87.50% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.23, ABT is in line with its industry, outperforming 55.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.13 |
ROIC/WACC0.89
WACC9.93%
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.
- The Current ratio of ABT (1.70) is worse than 67.93% 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.
- With a Quick ratio value of 1.24, ABT is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
| 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 10.28% over the past year.
- Measured over the past 5 years, ABT shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
- ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.67%.
- The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)10.28%
EPS 3Y-1.2%
EPS 5Y7.13%
EPS Q2Q%11.94%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y0.51%
Revenue growth 5Y5.08%
Sales Q2Q%4.42%
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 10.18% yearly.
- ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.15% yearly.
EPS Next Y11.35%
EPS Next 2Y10.76%
EPS Next 3Y9.84%
EPS Next 5Y10.18%
Revenue Next Year7.19%
Revenue Next 2Y7.26%
Revenue Next 3Y7.21%
Revenue Next 5Y7.15%
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 accelerating.
- 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 20.64.
- Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 82.07% of the companies listed in the same industry.
- ABT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- ABT is valuated rather expensively with a Price/Forward Earnings ratio of 18.53.
- Based on the Price/Forward Earnings ratio, ABT is valued cheaper than 83.70% of the companies in the same industry.
- ABT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
- 80.43% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ABT is valued cheaper than 82.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.72 | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)2.9
EPS Next 2Y10.76%
EPS Next 3Y9.84%
5. Dividend
5.1 Amount
- ABT has a Yearly Dividend Yield of 2.33%. 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 0.20. ABT pays more dividend than 97.83% of the companies in the same industry.
- ABT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 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
- ABT pays out 28.93% 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.
DP28.93%
EPS Next 2Y10.76%
EPS Next 3Y9.84%
ABBOTT LABORATORIES / ABT FAQ
What is the fundamental rating for ABT stock?
ChartMill assigns a fundamental rating of 6 / 10 to ABT.
What is the valuation status of ABBOTT LABORATORIES (ABT) stock?
ChartMill assigns a valuation rating of 6 / 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 7 / 10.
What are the PE and PB ratios of ABBOTT LABORATORIES (ABT) stock?
The Price/Earnings (PE) ratio for ABBOTT LABORATORIES (ABT) is 20.64 and the Price/Book (PB) ratio is 3.63.
Can you provide the expected EPS growth for ABT stock?
The Earnings per Share (EPS) of ABBOTT LABORATORIES (ABT) is expected to grow by 11.35% in the next year.