ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ABT. ABT was compared to 187 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, ABT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ABT had positive earnings in the past year.
ABT had a positive operating cash flow in the past year.
In the past 5 years ABT has always been profitable.
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 16.58%, ABT belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
With an excellent Return On Equity value of 27.66%, ABT belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
ABT has a Return On Invested Capital of 9.27%. This is amongst the best in the industry. ABT outperforms 90.37% of its industry peers.
ABT had an Average Return On Invested Capital over the past 3 years of 10.45%. This is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROIC | 9.27% |
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 (31.89%) is better than 97.33% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
ABT has a Operating Margin of 17.45%. 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.
With a Gross Margin value of 56.10%, ABT perfoms like the industry average, outperforming 54.01% 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 | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% |
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.
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 6.07 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT has a better Altman-Z score (6.07) than 81.28% of its industry peers.
ABT has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.99, ABT belongs to the top of the industry, outperforming 89.84% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that ABT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, ABT is in line with its industry, outperforming 51.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 6.07 |
ROIC/WACC1.07
WACC8.68%
2.3 Liquidity
ABT has a Current Ratio of 1.78. 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 1.78, ABT is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
A Quick Ratio of 1.27 indicates that ABT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, ABT is not doing good in the industry: 69.52% of the companies in the same industry are doing better.
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 | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.88% over the past year.
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 5.00% in the last year.
The Revenue has been growing slightly by 5.63% on average over the past years.
EPS 1Y (TTM)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
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 9.82% yearly.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y11.64%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
EPS Next 5Y9.82%
Revenue Next Year6.44%
Revenue Next 2Y7.08%
Revenue Next 3Y7.23%
Revenue Next 5Y7.19%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.97 indicates a quite expensive valuation of ABT.
Based on the Price/Earnings ratio, ABT is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. ABT is around the same levels.
Based on the Price/Forward Earnings ratio of 23.28, the valuation of ABT can be described as rather expensive.
75.40% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
ABT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
73.26% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
ABT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABT is cheaper than 79.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.94 | ||
| EV/EBITDA | 22.6 |
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 excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)3.69
EPS Next 2Y10.89%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, 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 1.77. ABT pays more dividend than 96.26% of the companies in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 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
ABT pays out 28.92% 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.
DP28.92%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
133.7
-0.74 (-0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0.71%
Market Cap232.62B
Analysts78.18
Price Target144.51 (8.09%)
Short Float %1.2%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-1.16%
Max EPS beat(2)0.73%
EPS beat(4)2
Avg EPS beat(4)0.36%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.86%
EPS beat(12)9
Avg EPS beat(12)5.62%
EPS beat(16)13
Avg EPS beat(16)9.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)2
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)3.05%
PT rev (1m)0.35%
PT rev (3m)3.11%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 23.28 | ||
| P/S | 5.49 | ||
| P/FCF | 34.94 | ||
| P/OCF | 25.99 | ||
| P/B | 4.77 | ||
| P/tB | 12.12 | ||
| EV/EBITDA | 22.6 |
EPS(TTM)4.78
EY3.58%
EPS(NY)5.74
Fwd EY4.29%
FCF(TTM)3.83
FCFY2.86%
OCF(TTM)5.14
OCFY3.85%
SpS24.34
BVpS28.05
TBVpS11.03
PEG (NY)2.4
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROCE | 10.8% | ||
| ROIC | 9.27% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 19.85% | ||
| OM | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% | ||
| 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%
ROICexcg growth 3Y-24.08%
ROICexcg 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 | 0.26 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 72.36% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.75% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 6.07 |
F-Score7
WACC8.68%
ROIC/WACC1.07
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)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
EPS Next Y11.64%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
EPS Next 5Y9.82%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
Revenue Next Year6.44%
Revenue Next 2Y7.08%
Revenue Next 3Y7.23%
Revenue Next 5Y7.19%
EBIT growth 1Y12%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year29.19%
EBIT Next 3Y15.9%
EBIT Next 5Y10.98%
FCF growth 1Y-2.43%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y3.36%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%