ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
107.585 USD
-1.19 (-1.09%)
Overall ABT gets a fundamental rating of 6 out of 10. We evaluated ABT against 184 industry peers in the Health Care Equipment & Supplies industry. While ABT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ABT is not valued too expensively and it also shows a decent growth rate. ABT also has an excellent dividend rating. These ratings could make ABT a good candidate for dividend 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 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 16.60%, ABT belongs to the top of the industry, outperforming 97.28% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 27.43%, ABT belongs to the top of the industry, outperforming 98.37% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 8.88%, ABT belongs to the best of the industry, outperforming 88.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROIC | 8.88% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of ABT (31.88%) is better than 98.37% 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 18.29%, ABT belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABT has grown nicely.
- The Gross Margin of ABT (56.19%) is comparable to the rest of the 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-0.87%
OM growth 5Y4.37%
PM growth 3Y-2.51%
PM growth 5Y2.53%
GM growth 3Y0.26%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABT is destroying value.
- There is no outstanding debt for ABT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 5.21 indicates that ABT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.21, ABT is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
- 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 has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. ABT outperforms 87.50% 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.
- ABT has a Debt to Equity ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.21 |
ROIC/WACC0.9
WACC9.92%
2.3 Liquidity
- A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.70, ABT is not doing good in the industry: 67.93% of the companies in the same industry are doing better.
- 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 has a Quick ratio of 1.24. This is in the lower half of the industry: ABT underperforms 65.22% of its industry peers.
| 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 10.28%, which is quite good.
- Measured over the past 5 years, ABT shows a small growth in Earnings Per Share. The EPS has been growing by 7.13% on average per year.
- ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.67%.
- Measured over the past years, ABT shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)10.28%
EPS 3Y-1.2%
EPS 5Y7.13%
EPS Q2Q%11.94%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y0.51%
Revenue growth 5Y5.08%
Sales Q2Q%4.42%
3.2 Future
- The Earnings Per Share is expected to grow by 10.18% 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 7.15% on average per year.
EPS Next Y11.35%
EPS Next 2Y10.76%
EPS Next 3Y9.84%
EPS Next 5Y10.18%
Revenue Next Year7.19%
Revenue Next 2Y7.26%
Revenue Next 3Y7.21%
Revenue Next 5Y7.15%
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
- A Price/Earnings ratio of 20.89 indicates a rather expensive valuation of ABT.
- Based on the Price/Earnings ratio, ABT is valued cheaply inside the industry as 82.07% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ABT to the average of the S&P500 Index (27.25), we can say ABT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 18.76, ABT is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, ABT is valued cheaply inside the industry as 83.15% of the companies are valued more expensively.
- ABT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 79.89% of the companies in the same industry.
- 81.52% of the companies in the same industry are more expensive than ABT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.05 | ||
| EV/EBITDA | 17.41 |
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 decent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)2.93
EPS Next 2Y10.76%
EPS Next 3Y9.84%
5. Dividend
5.1 Amount
- ABT has a Yearly Dividend Yield of 2.35%.
- Compared to an average industry Dividend Yield of 0.20, ABT pays a better dividend. On top of this ABT pays more dividend than 97.83% of the companies listed in the same industry.
- ABT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 28.93% 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.
DP28.93%
EPS Next 2Y10.76%
EPS Next 3Y9.84%
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 6 / 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 7 / 10.
What are the PE and PB ratios of ABBOTT LABORATORIES (ABT) stock?
The Price/Earnings (PE) ratio for ABBOTT LABORATORIES (ABT) is 20.89 and the Price/Book (PB) ratio is 3.67.
Can you provide the expected EPS growth for ABT stock?
The Earnings per Share (EPS) of ABBOTT LABORATORIES (ABT) is expected to grow by 11.35% in the next year.