ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ABT. ABT was compared to 187 industry peers in the Health Care Equipment & Supplies industry. ABT gets an excellent profitability rating and is at the same time showing great financial health properties. ABT has a correct valuation and a medium growth rate. This makes ABT very considerable for quality 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.
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 16.58%, ABT belongs to the top of the industry, outperforming 96.79% of the companies in the same industry.
ABT has a better Return On Equity (27.66%) than 96.79% of its industry peers.
The Return On Invested Capital of ABT (9.27%) is better than 90.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROIC | 9.27% |
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 31.89%. This is amongst the best in the industry. ABT outperforms 97.33% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
Looking at the Operating Margin, with a value of 17.45%, ABT belongs to the top of the industry, outperforming 88.77% of the companies in the same industry.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin of 56.10%. This is comparable to the rest of the industry: ABT outperforms 54.01% of its industry peers.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% |
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
ABT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ABT remains at a similar level compared to 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 5.64 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT's Altman-Z score of 5.64 is fine compared to the rest of the industry. ABT outperforms 79.68% of its industry peers.
ABT has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
ABT has a better Debt to FCF ratio (1.99) than 89.84% 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.
ABT has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.06
WACC8.76%
2.3 Liquidity
ABT has a Current Ratio of 1.78. 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 1.78 is on the low side compared to the rest of the industry. ABT is outperformed by 70.05% of its industry peers.
A Quick Ratio of 1.27 indicates that ABT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, ABT is not doing good in the industry: 68.98% of the companies in the same industry are doing better.
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 | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.11%, which is quite good.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
The Revenue has been growing slightly by 4.59% 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)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
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 9.82% on average per year.
Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 7.19% on average per year.
EPS Next Y11.61%
EPS Next 2Y10.91%
EPS Next 3Y10.72%
EPS Next 5Y9.82%
Revenue Next Year6.43%
Revenue Next 2Y7.08%
Revenue Next 3Y7.24%
Revenue Next 5Y7.19%
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
Based on the Price/Earnings ratio of 25.24, the valuation of ABT can be described as expensive.
77.54% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABT to the average of the S&P500 Index (27.50), we can say ABT is valued inline with the index average.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of ABT.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than the industry average as 77.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, ABT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 73.26% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 80.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 20.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABT does not grow enough to justify the current Price/Earnings ratio.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)3.33
EPS Next 2Y10.91%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.79%.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.75. ABT pays more dividend than 96.26% of the companies in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 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 28.92% 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.
DP28.92%
EPS Next 2Y10.91%
EPS Next 3Y10.72%
123.67
+3.16 (+2.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0.71%
Market Cap215.17B
Analysts78.18
Price Target146.34 (18.33%)
Short Float %1.12%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-1.16%
Max EPS beat(2)0.73%
EPS beat(4)2
Avg EPS beat(4)0.36%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.86%
EPS beat(12)9
Avg EPS beat(12)5.62%
EPS beat(16)13
Avg EPS beat(16)9.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)2
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)3.05%
PT rev (1m)0.23%
PT rev (3m)3.11%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 21.53 | ||
| P/S | 5.08 | ||
| P/FCF | 32.32 | ||
| P/OCF | 24.04 | ||
| P/B | 4.41 | ||
| P/tB | 11.21 | ||
| EV/EBITDA | 20.43 |
EPS(TTM)4.9
EY3.96%
EPS(NY)5.74
Fwd EY4.64%
FCF(TTM)3.83
FCFY3.09%
OCF(TTM)5.14
OCFY4.16%
SpS24.34
BVpS28.05
TBVpS11.03
PEG (NY)2.17
PEG (5Y)3.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROCE | 10.8% | ||
| ROIC | 9.27% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 19.85% | ||
| OM | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% | ||
| FCFM | 15.72% |
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 | 1.99 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 72.36% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.75% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 5.64 |
F-Score7
WACC8.76%
ROIC/WACC1.06
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)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
EPS Next Y11.61%
EPS Next 2Y10.91%
EPS Next 3Y10.72%
EPS Next 5Y9.82%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
Revenue Next Year6.43%
Revenue Next 2Y7.08%
Revenue Next 3Y7.24%
Revenue Next 5Y7.19%
EBIT growth 1Y12%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year29.19%
EBIT Next 3Y15.9%
EBIT Next 5Y10.98%
FCF growth 1Y-2.43%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y3.36%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%