ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
Overall ABT gets a fundamental rating of 6 out of 10. We evaluated ABT against 190 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ABT a very profitable company, without any liquidiy or solvency issues. ABT has a decent growth rate and is not valued too expensively. These ratings could make ABT a good candidate 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.
ABT had positive earnings in each of the past 5 years.
In the past 5 years ABT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.46%, ABT belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
ABT has a better Return On Equity (28.12%) than 97.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.98%, ABT belongs to the top of the industry, outperforming 90.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABT is above the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.46% | ||
| ROE | 28.12% | ||
| ROIC | 8.98% |
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 (31.95%) is better than 96.86% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
ABT has a better Operating Margin (16.77%) than 88.48% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin of 55.66%. This is comparable to the rest of the industry: ABT outperforms 50.26% of its industry peers.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.77% | ||
| PM (TTM) | 31.95% | ||
| GM | 55.66% |
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.
ABT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ABT has been reduced compared to 5 years ago.
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.79 indicates that ABT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ABT (5.79) is better than 84.29% of its industry peers.
ABT has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as ABT would need 2.22 years to pay back of all of its debts.
The Debt to FCF ratio of ABT (2.22) is better than 90.05% of its industry peers.
ABT has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ABT (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 5.79 |
ROIC/WACC1.02
WACC8.82%
2.3 Liquidity
ABT has a Current Ratio of 1.67. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
ABT's Current ratio of 1.67 is on the low side compared to the rest of the industry. ABT is outperformed by 70.16% of its industry peers.
ABT has a Quick Ratio of 1.23. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
ABT's Quick ratio of 1.23 is on the low side compared to the rest of the industry. ABT is outperformed by 69.11% of its industry peers.
ABT does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.67 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.88%, which is quite good.
ABT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
The Revenue has been growing slightly by 5.00% in the past year.
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)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
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 9.75% on average per year.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y11.46%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
EPS Next 5Y9.75%
Revenue Next Year5.65%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.40, 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 75.92% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. ABT is around the same levels.
The Price/Forward Earnings ratio is 22.83, which indicates a rather expensive current valuation of ABT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 78.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (21.08), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 73.82% 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 77.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.77 | ||
| 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 excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)3.61
EPS Next 2Y10.84%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.93, ABT pays a better dividend. On top of this ABT pays more dividend than 95.81% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.52, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
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 28.62% 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.
DP28.62%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
130.98
+1.28 (+0.99%)
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 Change0.33%
Ins Owners0.45%
Ins Owner Change0.6%
Market Cap227.16B
Analysts80
Price Target140.15 (7%)
Short Float %1.33%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.62%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.75%
Min EPS beat(2)-1.16%
Max EPS beat(2)-0.34%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)6.97%
EPS beat(16)13
Avg EPS beat(16)9.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)-0.15%
Revenue beat(8)3
Avg Revenue beat(8)0.18%
Revenue beat(12)7
Avg Revenue beat(12)2.21%
Revenue beat(16)10
Avg Revenue beat(16)2.94%
PT rev (1m)1.79%
PT rev (3m)4.99%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 22.83 | ||
| P/S | 5.42 | ||
| P/FCF | 35.77 | ||
| P/OCF | 26.54 | ||
| P/B | 4.77 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 22.72 |
EPS(TTM)4.78
EY3.65%
EPS(NY)5.74
Fwd EY4.38%
FCF(TTM)3.66
FCFY2.8%
OCF(TTM)4.93
OCFY3.77%
SpS24.19
BVpS27.48
TBVpS10.33
PEG (NY)2.39
PEG (5Y)3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.46% | ||
| ROE | 28.12% | ||
| ROCE | 10.46% | ||
| ROIC | 8.98% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 20.46% | ||
| OM | 16.77% | ||
| PM (TTM) | 31.95% | ||
| GM | 55.66% | ||
| FCFM | 15.14% |
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%
ROICexcg growth 3Y-24.08%
ROICexcg 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 | 0.26 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 68.58% | ||
| Cap/Sales | 5.26% | ||
| Interest Coverage | 11.65 | ||
| Cash Conversion | 83.46% | ||
| Profit Quality | 47.39% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 5.79 |
F-Score7
WACC8.82%
ROIC/WACC1.02
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)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
EPS Next Y11.46%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
EPS Next 5Y9.75%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
Revenue Next Year5.65%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.77%
EBIT growth 1Y4.67%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.12%
EBIT Next 3Y15.31%
EBIT Next 5Y10.73%
FCF growth 1Y25.54%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y17.86%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%