ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ABT. ABT was compared to 191 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ABT had positive earnings in the past year.
ABT had a positive operating cash flow in the past year.
Each year in the past 5 years ABT has been profitable.
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 88.95% of its industry peers.
ABT has a Return On Equity of 14.49%. This is amongst the best in the industry. ABT outperforms 90.00% of its industry peers.
The Return On Invested Capital of ABT (10.06%) is better than 90.53% of its industry peers.
| 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 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ABT has grown nicely.
ABT has a Operating Margin of 16.90%. This is amongst the best in the industry. ABT outperforms 88.95% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
With a Gross Margin value of 55.81%, ABT perfoms like the industry average, outperforming 50.53% of the companies in the same 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some 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
ABT has an Altman-Z score of 5.64. 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 5.64, ABT is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
The Debt to FCF ratio of ABT is 2.31, which is a good value as it means it would take ABT, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, ABT belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
ABT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
ABT's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. ABT outperforms 49.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.14
WACC8.8%
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.
ABT has a Current ratio of 1.60. This is in the lower half of the industry: ABT underperforms 73.16% of its industry peers.
ABT has a Quick Ratio of 1.14. 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 1.14, ABT is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ABT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.18%.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.59%.
ABT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
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
ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.45% yearly.
Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y11.38%
EPS Next 2Y10.98%
EPS Next 3Y10.82%
EPS Next 5Y10.45%
Revenue Next Year7.06%
Revenue Next 2Y7.16%
Revenue Next 3Y6.9%
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
The Price/Earnings ratio is 27.28, which means the current valuation is very expensive for ABT.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 78.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, ABT is valued at the same level.
With a Price/Forward Earnings ratio of 24.49, ABT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 77.89% of the companies listed in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
76.32% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
81.58% 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 | 34.07 | ||
| EV/EBITDA | 22.72 |
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)2.4
PEG (5Y)3.6
EPS Next 2Y10.98%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.89%, ABT has a reasonable but not impressive dividend return.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.60. ABT pays more dividend than 96.32% of the companies in the same industry.
ABT's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y10.98%
EPS Next 3Y10.82%
ABBOTT LABORATORIES
NYSE:ABT (1/28/2025, 8:20:57 PM)
After market: 127.46 +0.07 (+0.05%)127.39
-2.04 (-1.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners77.54%
Inst Owner Change0.1%
Ins Owners0.47%
Ins Owner Change0%
Market Cap220.95B
Analysts80.63
Price Target135.78 (6.59%)
Short Float %0.83%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)0.32%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.49 | ||
| P/S | 5.36 | ||
| P/FCF | 34.07 | ||
| P/OCF | 25.32 | ||
| P/B | 5.55 | ||
| P/tB | 25.15 | ||
| EV/EBITDA | 22.72 |
EPS(TTM)4.67
EY3.67%
EPS(NY)5.2
Fwd EY4.08%
FCF(TTM)3.74
FCFY2.94%
OCF(TTM)5.03
OCFY3.95%
SpS23.76
BVpS22.94
TBVpS5.07
PEG (NY)2.4
PEG (5Y)3.6
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 | 5.64 |
F-Score8
WACC8.8%
ROIC/WACC1.14
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 Y11.38%
EPS Next 2Y10.98%
EPS Next 3Y10.82%
EPS Next 5Y10.45%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.16%
Revenue Next Year7.06%
Revenue Next 2Y7.16%
Revenue Next 3Y6.9%
Revenue Next 5Y6.86%
EBIT growth 1Y14.09%
EBIT growth 3Y-6.22%
EBIT growth 5Y8.68%
EBIT Next Year26.18%
EBIT Next 3Y10.67%
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