By Mill Chart
Last update: Jun 12, 2025
ABBOTT LABORATORIES (NYSE:ABT) stands out as a strong candidate for quality investors, meeting key criteria for long-term growth, profitability, and financial health. The company’s fundamentals align well with the Caviar Cruise screening strategy, which focuses on identifying high-quality businesses with sustainable competitive advantages.
Revenue and EBIT Growth: Over the past five years, ABT has delivered consistent revenue growth (5Y CAGR of 7.19%) and EBIT growth (5Y CAGR of 8.41%). This demonstrates the company’s ability to expand its operations while improving profitability.
High Return on Invested Capital (ROIC): ABT’s ROIC (excluding cash and goodwill) stands at 19.85%, well above the 15% threshold for quality stocks. This indicates efficient use of capital to generate profits.
Strong Profit Quality: With a five-year average profit quality of 99.60%, ABT converts nearly all its net income into free cash flow—a sign of financial efficiency and reliability.
Manageable Debt Levels: The company’s debt-to-free cash flow ratio is 1.99, meaning it could repay its debt in under two years using current cash flows. This reflects a conservative financial structure.
Abbott Laboratories holds a solid fundamental rating of 7 out of 10, with standout scores in profitability (8/10) and financial health (8/10). Key takeaways include:
For investors seeking stable, high-quality businesses, ABT presents a compelling case.
Our Caviar Cruise screener lists more quality stocks and is updated regularly.
This is not investment advice. Always conduct your own research before making investment decisions.
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-0.19 (-0.15%)
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