ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
125.38 USD
-0.02 (-0.02%)
Taking everything into account, ABT scores 6 out of 10 in our fundamental rating. ABT was compared to 188 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 correct valuation and a medium growth rate. This makes ABT very considerable for quality investing!
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 each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.60%, ABT belongs to the top of the industry, outperforming 96.81% of the companies in the same industry.
ABT's Return On Equity of 27.43% is amongst the best of the industry. ABT outperforms 97.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.90%, ABT belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
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 8.78%.
| 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
The Profit Margin of ABT (31.88%) is better than 96.81% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
The Operating Margin of ABT (18.29%) is better than 89.36% 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 53.72% 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-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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some value.
Compared to 1 year ago, ABT has about the same amount of shares outstanding.
Compared to 5 years ago, ABT has less shares outstanding
Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.74 indicates that ABT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.74, ABT is doing good in the industry, outperforming 78.72% 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 88.30% of its industry peers.
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 of 0.23. This is comparable to the rest of the industry: ABT outperforms 56.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.18
WACC8.38%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, ABT is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
ABT's Quick ratio of 1.24 is on the low side compared to the rest of the industry. ABT is outperformed by 67.02% of its industry peers.
The current and quick ratio evaluation for ABT is rather negative, while it does have 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
The Earnings Per Share has grown by an nice 10.40% 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.
Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
The Revenue has been growing slightly by 5.63% on average over the past years.
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
ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.89% yearly.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y9.89%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.22%
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 quite expensively with a Price/Earnings ratio of 25.13.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 77.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. ABT is around the same levels.
Based on the Price/Forward Earnings ratio of 21.87, the valuation of ABT can be described as rather expensive.
ABT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 77.66% 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 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 76.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 78.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.52 | ||
| EV/EBITDA | 20 |
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 excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)3.31
EPS Next 2Y10.79%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, ABT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.71, ABT pays a better dividend. On top of this ABT pays more dividend than 96.28% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of ABT grows each year by 11.40%, which is quite nice.
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
ABT pays out 28.93% of its income as dividend. This is a 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 2Y10.79%
EPS Next 3Y10.83%
NYSE:ABT (12/5/2025, 3:23:10 PM)
125.38
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change-0.27%
Ins Owners0.45%
Ins Owner Change-0.03%
Market Cap218.02B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.89
Price Target146.86 (17.13%)
Short Float %1.11%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)1.58%
PT rev (3m)1.75%
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)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 21.87 | ||
| P/S | 4.97 | ||
| P/FCF | 31.52 | ||
| P/OCF | 23.91 | ||
| P/B | 4.28 | ||
| P/tB | 10.19 | ||
| EV/EBITDA | 20 |
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
WACC8.38%
ROIC/WACC1.18
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 Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.77%
EBIT Next 3Y15.64%
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 6 / 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 7 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 6 / 10 and the dividend payout ratio is 28.93%.