ABBOTT LABORATORIES (ABT)
US0028241000 - Common Stock
Taking everything into account, ABT scores 6 out of 10 in our fundamental rating. ABT was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ABT a very profitable company, without any liquidiy or solvency issues. ABT has a correct valuation and a medium growth rate.
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.
ABT had positive earnings in each of the past 5 years.
In the past 5 years ABT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.76%, ABT belongs to the top of the industry, outperforming 88.77% of the companies in the same industry.
ABT has a Return On Equity of 14.49%. This is amongst the best in the industry. ABT outperforms 89.84% of its industry peers.
With an excellent Return On Invested Capital value of 9.92%, ABT belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is above the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROIC | 9.92% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
1.3 Margins
With an excellent Profit Margin value of 13.99%, ABT belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
ABT's Profit Margin has improved in the last couple of years.
ABT has a Operating Margin of 16.90%. 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.
ABT has a Gross Margin (55.81%) 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 | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% |
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
2. Health
2.1 Basic Checks
ABT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ABT has been reduced 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
An Altman-Z score of 5.20 indicates that ABT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ABT (5.20) is better than 77.54% of its industry peers.
The Debt to FCF ratio of ABT is 2.31, which is a good value as it means it would take ABT, 2.31 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.31, ABT belongs to the best of the industry, outperforming 86.63% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that ABT is not too dependend on debt financing.
ABT's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. ABT outperforms 48.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.12
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.60 indicates that ABT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.60, ABT is not doing good in the industry: 74.87% of the companies in the same industry are doing better.
ABT has a Quick Ratio of 1.14. 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 Quick ratio value of 1.14, ABT is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
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 | 1.6 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.61% over the past year.
ABT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
The Revenue has been growing slightly by 5.58% on average over the past years.
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y9.04%
EPS Q2Q%6.14%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Sales Q2Q%4.85%
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 8.53% yearly.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
EPS Next Y6.36%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
EPS Next 5Y8.53%
Revenue Next Year4.77%
Revenue Next 2Y5.95%
Revenue Next 3Y6.42%
Revenue Next 5Y6.43%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.39 indicates a quite expensive valuation of ABT.
82.35% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
ABT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
The Price/Forward Earnings ratio is 22.02, which indicates a rather expensive current valuation of ABT.
Based on the Price/Forward Earnings ratio, ABT is valued cheaply inside the industry as 80.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (23.99), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 78.61% of the companies in the same industry.
82.35% 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 | 30.69 | ||
| EV/EBITDA | 20.22 |
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.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.99
PEG (5Y)2.81
EPS Next 2Y8.35%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 2.10%.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.68. ABT pays more dividend than 96.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 12.67%!
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)12.67%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
65.30% of the earnings are spent on dividend by ABT. This is not a sustainable payout ratio.
The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.3%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
ABBOTT LABORATORIES
NYSE:ABT (12/24/2024, 7:53:40 PM)
After market: 114.76 0 (0%)114.76
+0.45 (+0.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners77.54%
Inst Owner Change-0.51%
Ins Owners0.47%
Ins Owner Change-0.01%
Market Cap199.05B
Analysts80.63
Price Target133.06 (15.95%)
Short Float %0.79%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)12.67%
DP65.3%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.94%
Min EPS beat(2)-0.34%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-0.89%
Max EPS beat(4)2.22%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)10
Avg EPS beat(12)7.76%
EPS beat(16)14
Avg EPS beat(16)10.15%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)-0.15%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)8
Avg Revenue beat(12)2.82%
Revenue beat(16)11
Avg Revenue beat(16)3.44%
PT rev (1m)0.7%
PT rev (3m)5.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 22.02 | ||
| P/S | 4.83 | ||
| P/FCF | 30.69 | ||
| P/OCF | 22.81 | ||
| P/B | 5 | ||
| P/tB | 22.65 | ||
| EV/EBITDA | 20.22 |
EPS(TTM)4.52
EY3.94%
EPS(NY)5.21
Fwd EY4.54%
FCF(TTM)3.74
FCFY3.26%
OCF(TTM)5.03
OCFY4.38%
SpS23.76
BVpS22.94
TBVpS5.07
PEG (NY)3.99
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 14.49% | ||
| ROCE | 11.71% | ||
| ROIC | 9.92% | ||
| ROICexc | 11.41% | ||
| ROICexgc | 28.55% | ||
| OM | 16.9% | ||
| PM (TTM) | 13.99% | ||
| GM | 55.81% | ||
| FCFM | 15.74% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
ROICexc(3y)13.36%
ROICexc(5y)11.22%
ROICexgc(3y)40.78%
ROICexgc(5y)36.67%
ROCE(3y)13.31%
ROCE(5y)11.41%
ROICexcg growth 3Y-1.4%
ROICexcg growth 5Y2.12%
ROICexc growth 3Y8.47%
ROICexc growth 5Y13.43%
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 69.54% | ||
| Cap/Sales | 5.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.67% | ||
| Profit Quality | 112.47% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 5.2 |
F-Score8
WACC8.82%
ROIC/WACC1.12
Cap/Depr(3y)58.52%
Cap/Depr(5y)59.07%
Cap/Sales(3y)4.65%
Cap/Sales(5y)5.07%
Profit Quality(3y)107.75%
Profit Quality(5y)114.52%
High Growth Momentum
Growth
EPS 1Y (TTM)5.61%
EPS 3Y6.75%
EPS 5Y9.04%
EPS Q2Q%6.14%
EPS Next Y6.36%
EPS Next 2Y8.35%
EPS Next 3Y9.08%
EPS Next 5Y8.53%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Sales Q2Q%4.85%
Revenue Next Year4.77%
Revenue Next 2Y5.95%
Revenue Next 3Y6.42%
Revenue Next 5Y6.43%
EBIT growth 1Y14.09%
EBIT growth 3Y7.37%
EBIT growth 5Y12.5%
EBIT Next Year21.28%
EBIT Next 3Y13.61%
EBIT Next 5Y8.99%
FCF growth 1Y-24.06%
FCF growth 3Y-4.03%
FCF growth 5Y0.62%
OCF growth 1Y-15.44%
OCF growth 3Y-2.78%
OCF growth 5Y2.88%