ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
ABT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. ABT has an excellent profitability rating, but there are some minor concerns on its financial health. ABT is not valued too expensively and it also shows a decent growth rate.
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.
ABT had positive earnings in each of the past 5 years.
ABT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ABT has a better Return On Assets (7.76%) than 89.30% of its industry peers.
The Return On Equity of ABT (14.49%) is better than 89.84% of its industry peers.
With an excellent Return On Invested Capital value of 10.06%, ABT belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROIC | 10.06% |
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
With an excellent Profit Margin value of 13.99%, ABT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
ABT's Profit Margin has improved in the last couple of years.
ABT's Operating Margin of 16.90% is amongst the best of the industry. ABT outperforms 88.77% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin (55.81%) which 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 | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% |
OM growth 3Y-5.39%
OM growth 5Y2.89%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.98%
GM growth 5Y-1.13%
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.
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 5.83 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT has a better Altman-Z score (5.83) than 82.89% of its industry peers.
ABT has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as ABT would need 2.31 years to pay back of all of its debts.
ABT has a better Debt to FCF ratio (2.31) than 87.17% of its industry peers.
ABT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ABT has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 5.83 |
ROIC/WACC1.16
WACC8.68%
2.3 Liquidity
ABT has a Current Ratio of 1.60. 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 1.60, ABT is not doing good in the industry: 74.87% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that ABT should not have too much problems paying its short term obligations.
ABT has a worse Quick ratio (1.14) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.18% 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.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.59%.
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)5.18%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%12.61%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.45% on average over the next years. This is quite good.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y11.5%
EPS Next 2Y11.05%
EPS Next 3Y10.99%
EPS Next 5Y10.45%
Revenue Next Year5.59%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.86%
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.
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
A Price/Earnings ratio of 29.55 indicates a quite expensive valuation of ABT.
ABT's Price/Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 74.87% of the companies in the same industry.
ABT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.43.
A Price/Forward Earnings ratio of 26.50 indicates a quite expensive valuation of ABT.
75.94% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (22.67), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 26.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 72.73% of the companies listed in the same industry.
ABT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABT is cheaper than 80.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.91 | ||
| EV/EBITDA | 23.81 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)3.9
EPS Next 2Y11.05%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, ABT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.63, ABT pays a better dividend. On top of this ABT pays more dividend than 95.72% of the companies listed in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 12.67%!
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)12.67%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
65.30% of the earnings are spent on dividend by ABT. This is not a sustainable payout ratio.
The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.3%
EPS Next 2Y11.05%
EPS Next 3Y10.99%
138.01
+2.14 (+1.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.14%
Inst Owner Change3.07%
Ins Owners0.45%
Ins Owner Change0%
Market Cap239.37B
Analysts80.63
Price Target136.85 (-0.84%)
Short Float %1.06%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.05
Dividend Growth(5Y)12.67%
DP65.3%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.94%
Min EPS beat(2)-0.34%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-0.89%
Max EPS beat(4)2.22%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)10
Avg EPS beat(12)7.76%
EPS beat(16)14
Avg EPS beat(16)10.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)-0.15%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)2.82%
Revenue beat(16)11
Avg Revenue beat(16)3.44%
PT rev (1m)2.52%
PT rev (3m)2.84%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.55 | ||
| Fwd PE | 26.5 | ||
| P/S | 5.81 | ||
| P/FCF | 36.91 | ||
| P/OCF | 27.43 | ||
| P/B | 6.01 | ||
| P/tB | 27.24 | ||
| EV/EBITDA | 23.81 |
EPS(TTM)4.67
EY3.38%
EPS(NY)5.21
Fwd EY3.77%
FCF(TTM)3.74
FCFY2.71%
OCF(TTM)5.03
OCFY3.65%
SpS23.76
BVpS22.94
TBVpS5.07
PEG (NY)2.57
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROCE | 11.71% | ||
| ROIC | 10.06% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 28.95% | ||
| OM | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% | ||
| FCFM | 15.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.39%
OM growth 5Y2.89%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.98%
GM growth 5Y-1.13%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 69.54% | ||
| Cap/Sales | 5.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.67% | ||
| Profit Quality | 112.47% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.83 |
F-Score8
WACC8.68%
ROIC/WACC1.16
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.18%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%12.61%
EPS Next Y11.5%
EPS Next 2Y11.05%
EPS Next 3Y10.99%
EPS Next 5Y10.45%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.16%
Revenue Next Year5.59%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.86%
EBIT growth 1Y14.09%
EBIT growth 3Y-6.22%
EBIT growth 5Y8.68%
EBIT Next Year27.83%
EBIT Next 3Y15.14%
EBIT Next 5Y10.88%
FCF growth 1Y44.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.27%
OCF growth 3YN/A
OCF growth 5YN/A