ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
121.76 USD
-1.77 (-1.43%)
121.85 USD
+0.09 (+0.07%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 186 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. Finally ABT also has an excellent dividend rating. With these ratings, ABT could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- ABT had positive earnings in the past year.
- In the past year ABT had a positive cash flow from operations.
- 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 16.60%, ABT belongs to the best of the industry, outperforming 97.31% of the companies in the same industry.
- ABT's Return On Equity of 27.43% is amongst the best of the industry. ABT outperforms 98.39% 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 89.25% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ABT is in line with the industry average of 8.84%.
| 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's Profit Margin of 31.88% is amongst the best of the industry. ABT outperforms 97.85% of its industry peers.
- ABT's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 18.29%, ABT belongs to the best of the industry, outperforming 89.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABT has grown nicely.
- ABT's Gross Margin of 56.19% is in line compared to the rest of the industry. ABT outperforms 54.84% of its industry peers.
- 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.
- ABT has about the same amout of shares outstanding than it did 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
- An Altman-Z score of 5.62 indicates that ABT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.62, ABT is in the better half of the industry, outperforming 79.57% 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.
- With an excellent Debt to FCF ratio value of 1.87, ABT belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.23, ABT perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.62 |
ROIC/WACC1
WACC9.91%
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.
- Looking at the Current ratio, with a value of 1.70, ABT is doing worse than 68.28% of the companies in the same industry.
- ABT has a Quick Ratio of 1.24. 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 1.24 is on the low side compared to the rest of the industry. ABT is outperformed by 65.59% 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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.40%, which is quite good.
- 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 6.37%.
- ABT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
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
- The Earnings Per Share is expected to grow by 9.68% on average over the next years. This is quite good.
- Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 7.22% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.68%
Revenue Next Year6.44%
Revenue Next 2Y7.21%
Revenue Next 3Y7.35%
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
- With a Price/Earnings ratio of 24.40, ABT is valued on the expensive side.
- 80.11% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, ABT is valued at the same level.
- A Price/Forward Earnings ratio of 21.24 indicates a rather expensive valuation of ABT.
- Based on the Price/Forward Earnings ratio, ABT is valued cheaper than 80.65% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (24.29), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.24 |
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 77.96% of the companies listed in the same industry.
- ABT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABT is cheaper than 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.61 | ||
| EV/EBITDA | 19.43 |
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.
- The excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)3.22
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.04%, 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 0.19. ABT pays more dividend than 96.77% of the companies in the same industry.
- ABT's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
- On average, the dividend of ABT grows each year by 11.40%, which is quite nice.
- 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.
- ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
121.76
-1.77 (-1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-15 2025-10-15/bmo
Earnings (Next)01-22 2026-01-22/amc
Inst Owners81.33%
Inst Owner Change0.16%
Ins Owners0.45%
Ins Owner Change-0.06%
Market Cap211.72B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.96 (20.7%)
Short Float %0.92%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.93%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-15 2026-01-15 (0.63)
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)0.1%
PT rev (3m)1.65%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.4 | ||
| Fwd PE | 21.24 | ||
| P/S | 4.83 | ||
| P/FCF | 30.61 | ||
| P/OCF | 23.22 | ||
| P/B | 4.16 | ||
| P/tB | 9.9 | ||
| EV/EBITDA | 19.43 |
EPS(TTM)4.99
EY4.1%
EPS(NY)5.73
Fwd EY4.71%
FCF(TTM)3.98
FCFY3.27%
OCF(TTM)5.24
OCFY4.31%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.13
PEG (5Y)3.22
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 | 5.62 |
F-Score7
WACC9.91%
ROIC/WACC1
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 5Y9.68%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.21%
Revenue Next 3Y7.35%
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 6 / 10 to ABT.
What is the valuation status of ABBOTT LABORATORIES (ABT) stock?
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.
What are the PE and PB ratios of ABBOTT LABORATORIES (ABT) stock?
The Price/Earnings (PE) ratio for ABBOTT LABORATORIES (ABT) is 24.4 and the Price/Book (PB) ratio is 4.16.
Can you provide the expected EPS growth for ABT stock?
The Earnings per Share (EPS) of ABBOTT LABORATORIES (ABT) is expected to grow by 11.44% in the next year.