ABBOTT LABORATORIES (ABT)
US0028241000 - Common Stock
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.
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.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
ABT's Return On Assets of 7.61% is amongst the best of the industry. ABT outperforms 89.30% of its industry peers.
The Return On Equity of ABT (14.13%) is better than 90.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.63%, ABT belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
ABT had an Average Return On Invested Capital over the past 3 years of 11.27%. This is above the industry average of 8.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 14.13% | ||
| ROIC | 9.63% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
1.3 Margins
ABT's Profit Margin of 13.65% is amongst the best of the industry. ABT outperforms 90.37% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
ABT has a Operating Margin of 16.54%. This is amongst the best in the industry. ABT outperforms 88.77% of its industry peers.
ABT's Operating Margin has improved in the last couple of years.
ABT has a Gross Margin (55.43%) which is in line with its industry peers.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.54% | ||
| PM (TTM) | 13.65% | ||
| GM | 55.43% |
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
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 has been reduced compared to 1 year ago.
The number of shares outstanding for ABT has been reduced compared to 5 years ago.
Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
ABT has an Altman-Z score of 5.33. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABT (5.33) is better than 78.07% of its industry peers.
The Debt to FCF ratio of ABT is 2.61, which is a good value as it means it would take ABT, 2.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABT (2.61) is better than 86.10% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that ABT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, ABT is in line with its industry, outperforming 44.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 5.33 |
ROIC/WACC1.1
WACC8.78%
2.3 Liquidity
ABT has a Current Ratio of 1.68. 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 1.68, ABT is doing worse than 74.33% of the companies in the same industry.
ABT has a Quick Ratio of 1.18. 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 Quick ratio (1.18) than 71.66% 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 | 1.68 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.61% over the past year.
ABT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 3.15% in the last year.
The Revenue has been growing slightly by 5.58% on average over the past years.
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y9.04%
EPS Q2Q%6.14%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Sales Q2Q%4.85%
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 8.35% on average per year.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.31% yearly.
EPS Next Y6.35%
EPS Next 2Y8.35%
EPS Next 3Y9.09%
EPS Next 5Y8.35%
Revenue Next Year4.81%
Revenue Next 2Y5.99%
Revenue Next 3Y6.46%
Revenue Next 5Y6.31%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.64 indicates a quite expensive valuation of ABT.
81.82% 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 (28.53), we can say ABT is valued inline with the index average.
The Price/Forward Earnings ratio is 22.23, which indicates a rather expensive current valuation of ABT.
Based on the Price/Forward Earnings ratio, ABT is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.40. ABT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than the industry average as 78.07% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 82.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.55 | ||
| EV/EBITDA | 20.87 |
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)4.04
PEG (5Y)2.84
EPS Next 2Y8.35%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, ABT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.67, ABT pays a better dividend. On top of this ABT pays more dividend than 96.79% of the companies listed in the same industry.
ABT's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 12.67%!
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)12.67%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
66.47% of the earnings are spent on dividend by ABT. This is not a sustainable payout ratio.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.47%
EPS Next 2Y8.35%
EPS Next 3Y9.09%
ABBOTT LABORATORIES
NYSE:ABT (11/15/2024, 8:04:00 PM)
After market: 115.9 0 (0%)115.9
+0.87 (+0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap201.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.04
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 14.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.54% | ||
| PM (TTM) | 13.65% | ||
| GM | 55.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y
EPS Q2Q%
EPS Next Y6.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y