ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
Overall ABT gets a fundamental rating of 7 out of 10. We evaluated ABT against 187 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 correct valuation and a medium growth rate. These ratings would make ABT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ABT was profitable.
In the past year ABT had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 16.58%, ABT belongs to the top 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.
The Average Return On Invested Capital over the past 3 years for ABT 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
ABT's Profit Margin of 31.89% is amongst the best of the industry. ABT outperforms 97.33% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.45%, ABT belongs to the best of the industry, outperforming 88.77% 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 56.10%, 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
ABT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ABT has about the same amout of shares outstanding than it did 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
ABT has an Altman-Z score of 6.09. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a better Altman-Z score (6.09) than 80.21% of its industry peers.
The Debt to FCF ratio of ABT is 1.99, which is an excellent value as it means it would take ABT, only 1.99 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.99, ABT belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
ABT has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.09 |
ROIC/WACC1.07
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.78 indicates that ABT should not have too much problems paying its short term obligations.
ABT's Current ratio of 1.78 is on the low side compared to the rest of the industry. ABT is outperformed by 70.59% of its industry peers.
A Quick Ratio of 1.27 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.27, ABT is doing worse than 69.52% 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 | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.88%, which is quite good.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
The Revenue has been growing slightly by 5.00% in the past 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
The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
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.
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
With a Price/Earnings ratio of 28.13, ABT can be considered very expensive at the moment.
ABT's Price/Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 77.54% of the companies in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.41, 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 75.40% 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 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than 73.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 80.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.14 | ||
| EV/EBITDA | 22.73 |
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)2.42
PEG (5Y)3.71
EPS Next 2Y10.89%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.76%. 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 1.77. ABT pays more dividend than 96.26% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, ABT is paying slightly less dividend.
| 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 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
28.92% 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.
DP28.92%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
134.44
+0.33 (+0.25%)
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 Change-42.59%
Ins Owners0.45%
Ins Owner Change0.71%
Market Cap233.90B
Analysts78.18
Price Target144.51 (7.49%)
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 | 28.13 | ||
| Fwd PE | 23.41 | ||
| P/S | 5.52 | ||
| P/FCF | 35.14 | ||
| P/OCF | 26.13 | ||
| P/B | 4.79 | ||
| P/tB | 12.19 | ||
| EV/EBITDA | 22.73 |
EPS(TTM)4.78
EY3.56%
EPS(NY)5.74
Fwd EY4.27%
FCF(TTM)3.83
FCFY2.85%
OCF(TTM)5.14
OCFY3.83%
SpS24.34
BVpS28.05
TBVpS11.03
PEG (NY)2.42
PEG (5Y)3.71
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 | 6.09 |
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%