ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - NYSE:ABT - US0028241000 - Common Stock
125.8 USD
+1.96 (+1.58%)
125.86 USD
+0.06 (+0.05%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 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. These ratings would make ABT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ABT was profitable.
In the past year ABT had a positive cash flow from operations.
ABT had positive earnings in each of the past 5 years.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.64%, ABT belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
ABT has a Return On Equity of 27.65%. This is amongst the best in the industry. ABT outperforms 97.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.43%, ABT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is in line with the industry average of 9.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROIC | 9.43% |
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
Looking at the Profit Margin, with a value of 32.43%, ABT belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
In the last couple of years the Profit Margin of ABT has grown nicely.
The Operating Margin of ABT (17.97%) is better than 87.83% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin (56.33%) which is comparable to the rest of the industry.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.97% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.33% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABT is creating some value.
The number of shares outstanding for ABT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABT has less shares outstanding
ABT has a better debt/assets ratio than last year.
2.2 Solvency
ABT has an Altman-Z score of 5.65. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.65, ABT belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
The Debt to FCF ratio of ABT is 1.98, which is an excellent value as it means it would take ABT, only 1.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, ABT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that ABT is not too dependend on debt financing.
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 | 1.98 | ||
| Altman-Z | 5.65 |
ROIC/WACC1.12
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.82 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, ABT is doing worse than 68.25% of the companies in the same industry.
ABT has a Quick Ratio of 1.30. 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 1.30 is on the low side compared to the rest of the industry. ABT is outperformed by 64.55% 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 | 1.82 | ||
| Quick Ratio | 1.3 |
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.
Measured over the past 5 years, ABT shows a small growth in Earnings Per Share. The EPS has been growing by 7.59% on average per year.
Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
The Revenue has been growing slightly by 5.63% on average over the past years.
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
ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.87% yearly.
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.84%
EPS Next 3Y10.85%
EPS Next 5Y9.87%
Revenue Next Year6.43%
Revenue Next 2Y7.1%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
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.
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 25.21, ABT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 76.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, ABT is valued at the same level.
With a Price/Forward Earnings ratio of 21.93, ABT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than the industry average as 76.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, ABT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 75.13% 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 78.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 20.33 |
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)2.2
PEG (5Y)3.32
EPS Next 2Y10.84%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.90. ABT pays more dividend than 95.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 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 28.42% 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.
DP28.42%
EPS Next 2Y10.84%
EPS Next 3Y10.85%
125.8
+1.96 (+1.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change-0.84%
Ins Owners0.45%
Ins Owner Change-0.02%
Market Cap218.95B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.86
Price Target146.85 (16.73%)
Short Float %1.12%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.08%
Min EPS beat(2)-0.58%
Max EPS beat(2)0.73%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-1.16%
Max EPS beat(4)0.73%
EPS beat(8)4
Avg EPS beat(8)0.55%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-0.29%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)2.75%
PT rev (1m)1.74%
PT rev (3m)0.35%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 21.93 | ||
| P/S | 5.08 | ||
| P/FCF | 32.32 | ||
| P/OCF | 24.23 | ||
| P/B | 4.33 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 20.33 |
EPS(TTM)4.99
EY3.97%
EPS(NY)5.74
Fwd EY4.56%
FCF(TTM)3.89
FCFY3.09%
OCF(TTM)5.19
OCFY4.13%
SpS24.77
BVpS29.05
TBVpS11.89
PEG (NY)2.2
PEG (5Y)3.32
Graham Number57.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROCE | 10.98% | ||
| ROIC | 9.43% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 19.91% | ||
| OM | 17.97% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.33% | ||
| 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%
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 72.02% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.01% | ||
| Profit Quality | 48.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.65 |
F-Score7
WACC8.45%
ROIC/WACC1.12
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 2Y10.84%
EPS Next 3Y10.85%
EPS Next 5Y9.87%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.43%
Revenue Next 2Y7.1%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
EBIT growth 1Y14.57%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.77%
EBIT Next 3Y15.64%
EBIT Next 5Y12.28%
FCF growth 1Y23.45%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y21.27%
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 7 / 10 to ABT.
Can you provide the valuation status for ABBOTT LABORATORIES?
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.
How financially healthy is ABBOTT LABORATORIES?
The financial health rating of ABBOTT LABORATORIES (ABT) is 8 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 6 / 10 and the dividend payout ratio is 28.42%.