ABB LTD-REG (1ABB.MI) Stock Fundamental Analysis
Europe - BIT:1ABB - CH0012221716 - Common Stock
63.9 EUR
+2.8 (+4.58%)
Taking everything into account, 1ABB scores 7 out of 10 in our fundamental rating. 1ABB was compared to 57 industry peers in the Electrical Equipment industry. 1ABB gets an excellent profitability rating and is at the same time showing great financial health properties. 1ABB has a correct valuation and a medium growth rate. This makes 1ABB very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1ABB had positive earnings in the past year.
1ABB had a positive operating cash flow in the past year.
In the past 5 years 1ABB has always been profitable.
Each year in the past 5 years 1ABB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.78%, 1ABB belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
1ABB has a Return On Equity of 29.75%. This is amongst the best in the industry. 1ABB outperforms 95.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.36%, 1ABB belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
1ABB had an Average Return On Invested Capital over the past 3 years of 14.75%. This is above the industry average of 10.00%.
The last Return On Invested Capital (16.36%) for 1ABB is above the 3 year average (14.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 29.75% | ||
| ROIC | 16.36% |
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 has a better Profit Margin (12.47%) than 90.63% of its industry peers.
1ABB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.09%, 1ABB belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ABB has grown nicely.
With a decent Gross Margin value of 38.99%, 1ABB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
1ABB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 12.47% | ||
| GM | 38.99% |
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.
The number of shares outstanding for 1ABB remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1ABB has been reduced compared to 5 years ago.
The debt/assets ratio for 1ABB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.93 indicates that 1ABB is not in any danger for bankruptcy at the moment.
1ABB has a better Altman-Z score (4.93) than 87.50% of its industry peers.
The Debt to FCF ratio of 1ABB is 2.36, which is a good value as it means it would take 1ABB, 2.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, 1ABB belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
1ABB has a Debt/Equity ratio of 0.61. This is a neutral value indicating 1ABB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, 1ABB perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
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 | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.93 |
ROIC/WACC3.36
WACC4.87%
2.3 Liquidity
1ABB has a Current Ratio of 1.37. This is a normal value and indicates that 1ABB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1ABB (1.37) is comparable to the rest of the industry.
1ABB has a Quick Ratio of 1.37. This is a bad value and indicates that 1ABB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1ABB (0.97) 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 | 1.37 | ||
| Quick Ratio | 0.97 |
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.
Measured over the past years, 1ABB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.16% on average per year.
1ABB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.91%.
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)1.91%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
3.2 Future
Based on estimates for the next years, 1ABB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
The Revenue is expected to grow by 5.61% on average over the next years.
EPS Next Y21.75%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
EPS Next 5Y10.26%
Revenue Next Year6.78%
Revenue Next 2Y6.36%
Revenue Next 3Y6.1%
Revenue Next 5Y5.61%
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
Based on the Price/Earnings ratio of 30.87, the valuation of 1ABB can be described as expensive.
Based on the Price/Earnings ratio, 1ABB is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
1ABB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
The Price/Forward Earnings ratio is 26.50, which means the current valuation is very expensive for 1ABB.
1ABB's Price/Forward Earnings ratio is in line with the industry average.
1ABB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 26.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ABB.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ABB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.25 | ||
| EV/EBITDA | 21.25 |
4.3 Compensation for Growth
1ABB's 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.
A more expensive valuation may be justified as 1ABB's earnings are expected to grow with 12.99% in the coming years.
PEG (NY)1.42
PEG (5Y)2.76
EPS Next 2Y15.22%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
1ABB has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
1ABB's Dividend Yield is rather good when compared to the industry average which is at 2.16. 1ABB pays more dividend than 85.94% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, 1ABB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
45.55% of the earnings are spent on dividend by 1ABB. 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.
DP45.55%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
BIT:1ABB (11/3/2025, 7:00:00 PM)
63.9
+2.8 (+4.58%)
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 Cap118.84B
Revenue(TTM)32.85B
Net Income(TTM)4.19B
Analysts68.33
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.82
Dividend Growth(5Y)4.13%
DP45.55%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.67%
Min EPS beat(2)-1.11%
Max EPS beat(2)8.44%
EPS beat(4)1
Avg EPS beat(4)-3.73%
Min EPS beat(4)-21.59%
Max EPS beat(4)8.44%
EPS beat(8)3
Avg EPS beat(8)-2.82%
EPS beat(12)6
Avg EPS beat(12)8.16%
EPS beat(16)9
Avg EPS beat(16)5.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)0.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.54%
Revenue beat(12)4
Avg Revenue beat(12)-1.9%
Revenue beat(16)5
Avg Revenue beat(16)-2.39%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)3.41%
EPS NY rev (1m)0.67%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)1.39%
Revenue NQ rev (3m)5.3%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 26.5 | ||
| P/S | 4.13 | ||
| P/FCF | 37.25 | ||
| P/OCF | 30.01 | ||
| P/B | 9.86 | ||
| P/tB | 90.67 | ||
| EV/EBITDA | 21.25 |
EPS(TTM)2.07
EY3.24%
EPS(NY)2.41
Fwd EY3.77%
FCF(TTM)1.72
FCFY2.68%
OCF(TTM)2.13
OCFY3.33%
SpS15.46
BVpS6.48
TBVpS0.7
PEG (NY)1.42
PEG (5Y)2.76
Graham Number17.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 29.75% | ||
| ROCE | 21.2% | ||
| ROIC | 16.36% | ||
| ROICexc | 20.24% | ||
| ROICexgc | 46.75% | ||
| OM | 17.09% | ||
| PM (TTM) | 12.47% | ||
| GM | 38.99% | ||
| FCFM | 11.1% |
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-ScoreN/A
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 111.14% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 20.71 | ||
| Cash Conversion | 70.65% | ||
| Profit Quality | 89.01% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 4.93 |
F-ScoreN/A
WACC4.87%
ROIC/WACC3.36
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 Y21.75%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
EPS Next 5Y10.26%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.78%
Revenue Next 2Y6.36%
Revenue Next 3Y6.1%
Revenue Next 5Y5.61%
EBIT growth 1Y12.71%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.53%
EBIT Next 3Y14.47%
EBIT Next 5Y10.85%
FCF growth 1Y114.57%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y85.59%
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 30.87 and the Price/Book (PB) ratio is 9.86.
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 45.55%.