ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
125.11 USD
+0.3 (+0.24%)
Taking everything into account, ABT scores 7 out of 10 in our fundamental rating. ABT was compared to 185 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 has a decent growth rate and is not valued too expensively. ABT also has an excellent dividend rating. This makes ABT very considerable for dividend and 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.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.60%, ABT belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
ABT has a better Return On Equity (27.43%) than 98.38% of its industry peers.
ABT's Return On Invested Capital of 9.90% is amongst the best of the industry. ABT outperforms 89.19% 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 8.82%.
| 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
ABT has a better Profit Margin (31.88%) than 97.84% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
With an excellent Operating Margin value of 18.29%, ABT belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.
ABT's Operating Margin has improved in the last couple of years.
ABT has a Gross Margin (56.19%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some value.
Compared to 1 year ago, ABT has about the same amount of shares outstanding.
ABT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
ABT has an Altman-Z score of 5.72. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT's Altman-Z score of 5.72 is amongst the best of the industry. ABT outperforms 80.54% of its industry peers.
The Debt to FCF ratio of ABT is 1.87, which is an excellent value as it means it would take ABT, only 1.87 years of fcf income to pay off all of its debts.
ABT has a better Debt to FCF ratio (1.87) than 88.11% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.72 |
ROIC/WACC1.17
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, ABT is not doing good in the industry: 69.73% of the companies in the same industry are doing better.
ABT has a Quick Ratio of 1.24. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.24, ABT is doing worse than 67.57% 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.
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.
Measured over the past years, ABT shows a small growth in Revenue. The Revenue has been growing by 5.63% on average per year.
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 9.89% on average per year.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
Revenue Next 5Y7.22%
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
ABT is valuated quite expensively with a Price/Earnings ratio of 25.07.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 77.30% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. ABT is around the same levels.
The Price/Forward Earnings ratio is 21.82, which indicates a rather expensive current valuation of ABT.
ABT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 77.84% of the companies in the same industry.
ABT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 21.82 |
4.2 Price Multiples
76.22% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABT is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.45 | ||
| EV/EBITDA | 19.91 |
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)2.19
PEG (5Y)3.31
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, ABT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.20, ABT pays a better dividend. On top of this ABT pays more dividend than 96.22% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
NYSE:ABT (12/26/2025, 10:25:09 AM)
125.11
+0.3 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.25%
Ins Owners0.45%
Ins Owner Change-0.04%
Market Cap217.55B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.81 (17.34%)
Short Float %1.07%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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)-0.03%
PT rev (3m)1.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 21.82 | ||
| P/S | 4.96 | ||
| P/FCF | 31.45 | ||
| P/OCF | 23.86 | ||
| P/B | 4.27 | ||
| P/tB | 10.17 | ||
| EV/EBITDA | 19.91 |
EPS(TTM)4.99
EY3.99%
EPS(NY)5.73
Fwd EY4.58%
FCF(TTM)3.98
FCFY3.18%
OCF(TTM)5.24
OCFY4.19%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.19
PEG (5Y)3.31
Graham Number57.36
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 | 5.72 |
F-Score7
WACC8.47%
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 Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.19%
Revenue Next 3Y7.32%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.08%
EBIT Next 3Y15.42%
EBIT Next 5Y13.66%
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 7 / 10 and the dividend payout ratio is 28.93%.