ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - NYSE:ABT - US0028241000 - Common Stock
130 USD
-0.03 (-0.02%)
130 USD
0 (0%)
Overall ABT gets a fundamental rating of 7 out of 10. We evaluated ABT against 188 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 decent growth rate and is not valued too expensively. These ratings would make ABT suitable for 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.
ABT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABT has a better Return On Assets (16.60%) than 96.81% of its industry peers.
The Return On Equity of ABT (27.43%) is better than 97.34% of its industry peers.
With an excellent Return On Invested Capital value of 9.90%, ABT belongs to the best of the industry, outperforming 89.89% 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 8.98%.
| 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
The Profit Margin of ABT (31.88%) is better than 96.28% 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 88.30% of the companies in the same industry.
ABT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 56.19%, ABT perfoms like the industry average, outperforming 54.26% of the companies in the same industry.
ABT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABT is creating some value.
ABT has about the same amout of shares outstanding than it did 1 year ago.
ABT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.88 indicates that ABT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.88, ABT belongs to the top of the industry, outperforming 81.38% 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 88.83% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
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 | 5.88 |
ROIC/WACC1.17
WACC8.46%
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.
With a Current ratio value of 1.70, ABT is not doing good in the industry: 69.68% of the companies in the same industry are doing better.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, ABT is doing worse than 67.02% of the companies in the same industry.
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.
ABT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
Looking at the last year, ABT shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
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
Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.09% on average per year.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.12% yearly.
EPS Next Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y10.09%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.12%
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
Based on the Price/Earnings ratio of 26.05, the valuation of ABT can be described as expensive.
76.06% 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 25.51, ABT is valued at the same level.
With a Price/Forward Earnings ratio of 22.68, ABT is valued on the expensive side.
ABT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 75.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, ABT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
ABT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABT is cheaper than 74.47% of the companies in the same industry.
78.19% 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 | 32.71 | ||
| EV/EBITDA | 20.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)3.43
EPS Next 2Y10.79%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.83%. 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 1.70. ABT pays more dividend than 95.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 28.93% 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 2Y10.79%
EPS Next 3Y10.83%
130
-0.03 (-0.02%)
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-0.28%
Ins Owners0.45%
Ins Owner Change-0.02%
Market Cap226.26B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.89
Price Target146.85 (12.96%)
Short Float %1.17%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.93%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)1.58%
PT rev (3m)1.8%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 22.68 | ||
| P/S | 5.16 | ||
| P/FCF | 32.71 | ||
| P/OCF | 24.81 | ||
| P/B | 4.44 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 20.74 |
EPS(TTM)4.99
EY3.84%
EPS(NY)5.73
Fwd EY4.41%
FCF(TTM)3.97
FCFY3.06%
OCF(TTM)5.24
OCFY4.03%
SpS25.19
BVpS29.28
TBVpS12.29
PEG (NY)2.28
PEG (5Y)3.43
Graham Number57.33
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 | 5.88 |
F-Score7
WACC8.46%
ROIC/WACC1.17
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 Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y10.09%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.12%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.77%
EBIT Next 3Y15.64%
EBIT Next 5Y12.85%
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 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 28.93%.