ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ABT • US0028241000
109.3 USD
+3.21 (+3.03%)
At close: Jan 30, 2026
109.01 USD
-0.29 (-0.27%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to ABT. ABT was compared to 184 industry peers in the Health Care Equipment & Supplies industry. ABT scores excellent on profitability, but there are some minor concerns on its financial health. ABT has a decent growth rate and is not valued too expensively. Finally ABT also has an excellent dividend rating. These ratings would make ABT suitable for dividend 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.
- In the past 5 years ABT has always been profitable.
- Of the past 5 years ABT 4 years had a positive operating cash flow.
1.2 Ratios
- ABT has a better Return On Assets (16.60%) than 97.28% of its industry peers.
- ABT's Return On Equity of 27.43% is amongst the best of 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
- The Profit Margin of ABT (31.88%) is better than 98.37% 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 89.67% of its industry peers.
- In the last couple of years the Operating Margin of ABT has grown nicely.
- 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.
- ABT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 5.13 indicates that ABT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ABT (5.13) is better than 77.72% 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.
- Looking at the Debt to FCF ratio, with a value of 1.87, ABT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
- ABT has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.13 |
ROIC/WACC0.89
WACC9.98%
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.
- With a Current ratio value of 1.70, ABT is not doing good in the industry: 67.93% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 1.24, ABT is doing worse than 65.22% of the companies in the same industry.
| 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 10.28%, which is quite good.
- The Earnings Per Share has been growing slightly by 7.13% on average over the past years.
- Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 5.67% in the last year.
- Measured over the past years, ABT shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
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
- Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.18% on average per year.
- Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
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
- 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
- Based on the Price/Earnings ratio of 21.22, the valuation of ABT can be described as rather expensive.
- ABT's Price/Earnings ratio is rather cheap when compared to the industry. ABT is cheaper than 82.07% of the companies in the same industry.
- ABT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 19.06, which indicates a rather expensive current valuation of ABT.
- Based on the Price/Forward Earnings ratio, ABT is valued cheaper than 83.15% 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABT is valued cheaper than 80.43% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ABT is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.48 | ||
| EV/EBITDA | 16.99 |
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)1.87
PEG (5Y)2.98
EPS Next 2Y10.76%
EPS Next 3Y9.84%
5. Dividend
5.1 Amount
- ABT has a Yearly Dividend Yield of 2.38%.
- ABT's Dividend Yield is rather good when compared to the industry average which is at 0.21. 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 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 28.93% 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 21.22 and the Price/Book (PB) ratio is 3.73.
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.