ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
128.05 USD
+0.86 (+0.68%)
128.04 USD
-0.01 (-0.01%)
We assign a fundamental rating of 6 out of 10 to ABT. ABT was compared to 188 industry peers in the Health Care Equipment & Supplies industry. ABT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years ABT has been profitable.
ABT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.60%, ABT belongs to the best of the industry, outperforming 96.81% 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 97.87% of the companies in the same industry.
The Return On Invested Capital of ABT (9.90%) is better than 89.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABT is in line with the industry average of 8.71%.
| 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
With an excellent Profit Margin value of 31.88%, ABT belongs to the best of the industry, outperforming 96.81% of the companies in the same industry.
ABT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.29%, ABT belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin (56.19%) which 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-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.
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
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
ABT has an Altman-Z score of 5.80. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a better Altman-Z score (5.80) than 78.19% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.87, ABT belongs to the top of the industry, outperforming 88.30% of the companies in the same industry.
ABT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
ABT's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. ABT outperforms 56.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.8 |
ROIC/WACC1.18
WACC8.37%
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.
ABT has a worse Current ratio (1.70) than 70.21% of its industry peers.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
The Quick ratio of ABT (1.24) is worse than 67.55% 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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.40% over the past year.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
The Revenue has been growing slightly by 6.37% in the past 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
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.
The Revenue is expected to grow by 7.12% on average over the next years.
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 25.66, the valuation of ABT can be described as expensive.
77.66% 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 25.98, ABT is valued at the same level.
With a Price/Forward Earnings ratio of 22.34, ABT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 76.06% of the companies listed in the same industry.
ABT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
ABT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABT is cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABT is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 20.3 |
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)2.24
PEG (5Y)3.38
EPS Next 2Y10.79%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, ABT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.73, ABT pays a better dividend. On top of this ABT pays more dividend than 95.74% of the companies listed in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 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
28.93% of the earnings are spent on dividend by ABT. This is a low number and sustainable payout ratio.
The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
128.05
+0.86 (+0.68%)
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-0.27%
Ins Owners0.45%
Ins Owner Change-0.02%
Market Cap222.87B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.89
Price Target146.86 (14.69%)
Short Float %1.17%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)1.75%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 22.34 | ||
| P/S | 5.08 | ||
| P/FCF | 32.22 | ||
| P/OCF | 24.44 | ||
| P/B | 4.37 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 20.3 |
EPS(TTM)4.99
EY3.9%
EPS(NY)5.73
Fwd EY4.48%
FCF(TTM)3.97
FCFY3.1%
OCF(TTM)5.24
OCFY4.09%
SpS25.19
BVpS29.28
TBVpS12.29
PEG (NY)2.24
PEG (5Y)3.38
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 | 5.8 |
F-Score7
WACC8.37%
ROIC/WACC1.18
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 6 / 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 7 / 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%.