ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
125.46 USD
+2.18 (+1.77%)
125.6 USD
+0.14 (+0.11%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 187 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 decent growth rate and is not valued too expensively. ABT also has an excellent dividend rating. This makes ABT very considerable for dividend and quality 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.
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
ABT has a better Return On Assets (16.60%) than 97.33% of its industry peers.
ABT has a better Return On Equity (27.43%) than 98.40% 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 89.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is in line with the industry average of 8.80%.
| 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
ABT has a Profit Margin of 31.88%. This is amongst the best in the industry. ABT outperforms 97.86% 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 89.84% 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 54.01% 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 | 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.
The number of shares outstanding for ABT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABT has less shares outstanding
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
ABT has an Altman-Z score of 5.67. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a better Altman-Z score (5.67) than 80.75% of its industry peers.
ABT has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
ABT's Debt to FCF ratio of 1.87 is amongst the best of the industry. ABT outperforms 88.24% 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.
With a Debt to Equity ratio value of 0.23, ABT perfoms like the industry average, outperforming 56.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.67 |
ROIC/WACC1.17
WACC8.46%
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.
ABT has a worse Current ratio (1.70) than 69.52% of its industry peers.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, ABT is doing worse than 66.84% of the companies in the same industry.
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.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
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
Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
Revenue Next 5Y7.22%
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
The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for ABT.
Based on the Price/Earnings ratio, ABT is valued a bit cheaper than the industry average as 78.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ABT is valued at the same level.
ABT is valuated rather expensively with a Price/Forward Earnings ratio of 21.89.
ABT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 79.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (23.78), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
ABT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABT is cheaper than 79.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.54 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)3.31
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.88%.
Compared to an average industry Dividend Yield of 1.34, ABT pays a better dividend. On top of this ABT pays more dividend than 96.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
ABT has paid a dividend for at least 10 years, which is 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
28.93% of the earnings are spent on dividend by ABT. This is a low number and 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 2Y10.8%
EPS Next 3Y10.58%
125.46
+2.18 (+1.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.25%
Ins Owners0.45%
Ins Owner Change-0.03%
Market Cap218.16B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.81 (17.02%)
Short Float %1.11%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)-0.03%
PT rev (3m)1.71%
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)0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 21.89 | ||
| P/S | 4.98 | ||
| P/FCF | 31.54 | ||
| P/OCF | 23.92 | ||
| P/B | 4.28 | ||
| P/tB | 10.2 | ||
| EV/EBITDA | 19.67 |
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 | 5.67 |
F-Score7
WACC8.46%
ROIC/WACC1.17
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 Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.08%
EBIT Next 3Y15.42%
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 7 / 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 8 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 7 / 10 and the dividend payout ratio is 28.93%.