ABB LTD-REG (1ABB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABB - CH0012221716 - Common Stock
61.02 EUR
-2.88 (-4.51%)
1ABB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Electrical Equipment industry. 1ABB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ABB is not valued too expensively and it also shows a decent growth rate. These ratings could make 1ABB a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1ABB had positive earnings in the past year.
In the past year 1ABB had a positive cash flow from operations.
In the past 5 years 1ABB has always been profitable.
In the past 5 years 1ABB always reported a positive cash flow from operatings.
1.2 Ratios
1ABB has a better Return On Assets (10.19%) than 90.48% of its industry peers.
1ABB has a Return On Equity of 29.70%. This is amongst the best in the industry. 1ABB outperforms 95.24% of its industry peers.
1ABB's Return On Invested Capital of 17.17% is amongst the best of the industry. 1ABB outperforms 92.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ABB is above the industry average of 9.83%.
The 3 year average ROIC (14.75%) for 1ABB is below the current ROIC(17.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 29.7% | ||
| ROIC | 17.17% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
1.3 Margins
1ABB's Profit Margin of 12.89% is amongst the best of the industry. 1ABB outperforms 90.48% of its industry peers.
1ABB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.63%, 1ABB belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ABB has grown nicely.
1ABB has a better Gross Margin (39.63%) than 60.32% of its industry peers.
In the last couple of years the Gross Margin of 1ABB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.63% |
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ABB is creating value.
1ABB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ABB has been reduced compared to 5 years ago.
1ABB has a better debt/assets ratio than last year.
2.2 Solvency
1ABB has an Altman-Z score of 4.84. This indicates that 1ABB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1ABB (4.84) is better than 88.89% of its industry peers.
1ABB has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as 1ABB would need 2.08 years to pay back of all of its debts.
1ABB's Debt to FCF ratio of 2.08 is amongst the best of the industry. 1ABB outperforms 82.54% of its industry peers.
1ABB has a Debt/Equity ratio of 0.53. This is a neutral value indicating 1ABB is somewhat dependend on debt financing.
1ABB has a Debt to Equity ratio (0.53) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for 1ABB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 4.84 |
ROIC/WACC3.53
WACC4.87%
2.3 Liquidity
A Current Ratio of 1.40 indicates that 1ABB should not have too much problems paying its short term obligations.
The Current ratio of 1ABB (1.40) is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that 1ABB may have some problems paying its short term obligations.
1ABB has a Quick ratio (1.00) which is comparable to the rest of the industry.
1ABB 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 | 1.4 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
1ABB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.68%, which is quite good.
The Earnings Per Share has been growing by 11.16% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.16% in the past year.
Measured over the past years, 1ABB shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
EPS 1Y (TTM)15.68%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%29.41%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
3.2 Future
The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
Based on estimates for the next years, 1ABB will show a small growth in Revenue. The Revenue will grow by 6.39% on average per year.
EPS Next Y23.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
EPS Next 5Y10.52%
Revenue Next Year6.9%
Revenue Next 2Y5.87%
Revenue Next 3Y5.86%
Revenue Next 5Y6.39%
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 stable.
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
The Price/Earnings ratio is 29.06, which means the current valuation is very expensive for 1ABB.
1ABB's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ABB is cheaper than 65.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1ABB is valued at the same level.
1ABB is valuated rather expensively with a Price/Forward Earnings ratio of 23.29.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ABB.
The average S&P500 Price/Forward Earnings ratio is at 23.56. 1ABB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 23.29 |
4.2 Price Multiples
1ABB's Enterprise Value to EBITDA is on the same level as the industry average.
1ABB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.85 | ||
| EV/EBITDA | 18.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1ABB may justify a higher PE ratio.
1ABB's earnings are expected to grow with 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)2.6
EPS Next 2Y19.27%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
1ABB has a Yearly Dividend Yield of 1.62%.
Compared to an average industry Dividend Yield of 2.23, 1ABB pays a better dividend. On top of this 1ABB pays more dividend than 82.54% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, 1ABB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of 1ABB has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ABB pays out 42.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1ABB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
BIT:1ABB (11/13/2025, 7:00:00 PM)
61.02
-2.88 (-4.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap113.48B
Revenue(TTM)34.51B
Net Income(TTM)4.45B
Analysts68
Price Target60.05 (-1.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.83
Dividend Growth(5Y)4.13%
DP42.87%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.32%
Min EPS beat(2)-1.11%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)2.1%
Min EPS beat(4)-1.11%
Max EPS beat(4)8.44%
EPS beat(8)4
Avg EPS beat(8)-1.53%
EPS beat(12)6
Avg EPS beat(12)6.35%
EPS beat(16)9
Avg EPS beat(16)4.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)-2.14%
Revenue beat(12)5
Avg Revenue beat(12)-1.7%
Revenue beat(16)6
Avg Revenue beat(16)-1.99%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)1.74%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 23.29 | ||
| P/S | 3.79 | ||
| P/FCF | 31.85 | ||
| P/OCF | 25.96 | ||
| P/B | 8.73 | ||
| P/tB | 53.16 | ||
| EV/EBITDA | 18.97 |
EPS(TTM)2.1
EY3.44%
EPS(NY)2.62
Fwd EY4.29%
FCF(TTM)1.92
FCFY3.14%
OCF(TTM)2.35
OCFY3.85%
SpS16.11
BVpS6.99
TBVpS1.15
PEG (NY)1.22
PEG (5Y)2.6
Graham Number18.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 29.7% | ||
| ROCE | 22.03% | ||
| ROIC | 17.17% | ||
| ROICexc | 21.92% | ||
| ROICexgc | 51.92% | ||
| OM | 17.63% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.63% | ||
| FCFM | 11.9% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
ROICexc(3y)19.32%
ROICexc(5y)16.24%
ROICexgc(3y)54.6%
ROICexgc(5y)45.35%
ROCE(3y)19.26%
ROCE(5y)16.22%
ROICexgc growth 3Y10.23%
ROICexgc growth 5Y26.05%
ROICexc growth 3Y12.7%
ROICexc growth 5Y25.08%
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 112.3% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 22.7 | ||
| Cash Conversion | 72.85% | ||
| Profit Quality | 92.29% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 4.84 |
F-Score7
WACC4.87%
ROIC/WACC3.53
Cap/Depr(3y)99.23%
Cap/Depr(5y)93.07%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.61%
Profit Quality(3y)70.85%
Profit Quality(5y)57.43%
High Growth Momentum
Growth
EPS 1Y (TTM)15.68%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%29.41%
EPS Next Y23.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
EPS Next 5Y10.52%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.9%
Revenue Next 2Y5.87%
Revenue Next 3Y5.86%
Revenue Next 5Y6.39%
EBIT growth 1Y18.87%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.53%
EBIT Next 3Y14.47%
EBIT Next 5Y11.04%
FCF growth 1Y77.32%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y63.51%
OCF growth 3Y11.97%
OCF growth 5Y14.99%
ABB LTD-REG / 1ABB.MI FAQ
What is the fundamental rating for 1ABB stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1ABB.MI.
What is the valuation status for 1ABB stock?
ChartMill assigns a valuation rating of 4 / 10 to ABB LTD-REG (1ABB.MI). This can be considered as Fairly Valued.
What is the profitability of 1ABB stock?
ABB LTD-REG (1ABB.MI) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for 1ABB stock?
The Price/Earnings (PE) ratio for ABB LTD-REG (1ABB.MI) is 29.06 and the Price/Book (PB) ratio is 8.73.
Is the dividend of ABB LTD-REG sustainable?
The dividend rating of ABB LTD-REG (1ABB.MI) is 5 / 10 and the dividend payout ratio is 42.87%.