ABB LTD-REG (1ABB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABB - CH0012221716 - Common Stock
63.18 EUR
+0.44 (+0.7%)
Overall 1ABB gets a fundamental rating of 7 out of 10. We evaluated 1ABB against 65 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making 1ABB a very profitable company, without any liquidiy or solvency issues. 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.
Each year in the past 5 years 1ABB has been profitable.
Each year in the past 5 years 1ABB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.19%, 1ABB belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
The Return On Equity of 1ABB (29.70%) is better than 95.38% of its industry peers.
1ABB's Return On Invested Capital of 17.17% is amongst the best of the industry. 1ABB outperforms 95.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ABB is above the industry average of 10.08%.
The last Return On Invested Capital (17.17%) for 1ABB is above the 3 year average (14.75%), which is a sign of increasing profitability.
| 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
The Profit Margin of 1ABB (12.89%) is better than 92.31% of its industry peers.
In the last couple of years the Profit Margin of 1ABB has grown nicely.
The Operating Margin of 1ABB (17.63%) is better than 87.69% of its industry peers.
1ABB's Operating Margin has improved in the last couple of years.
The Gross Margin of 1ABB (39.63%) is better than 61.54% 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.
Compared to 1 year ago, 1ABB has about the same amount of shares outstanding.
Compared to 5 years ago, 1ABB has less shares outstanding
The debt/assets ratio for 1ABB has been reduced compared to a year ago.
2.2 Solvency
1ABB has an Altman-Z score of 5.00. This indicates that 1ABB is financially healthy and has little risk of bankruptcy at the moment.
1ABB's Altman-Z score of 5.00 is amongst the best of the industry. 1ABB outperforms 84.62% of its industry peers.
The Debt to FCF ratio of 1ABB is 2.08, which is a good value as it means it would take 1ABB, 2.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.08, 1ABB belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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 of 0.53. This is comparable to the rest of the industry: 1ABB outperforms 53.85% of its industry peers.
Although 1ABB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 5 |
ROIC/WACC3.22
WACC5.34%
2.3 Liquidity
A Current Ratio of 1.40 indicates that 1ABB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, 1ABB is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that 1ABB may have some problems paying its short term obligations.
1ABB's Quick ratio of 1.00 is fine compared to the rest of the industry. 1ABB outperforms 63.08% of its industry peers.
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
The Earnings Per Share has grown by an nice 15.68% over the past year.
1ABB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.16% yearly.
The Revenue has been growing slightly by 6.16% in the past year.
The Revenue has been growing slightly by 3.26% on average over the past years.
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
Based on estimates for the next years, 1ABB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.52% on average per year.
The Revenue is expected to grow by 6.10% on average over the next years.
EPS Next Y22.8%
EPS Next 2Y19.5%
EPS Next 3Y14.11%
EPS Next 5Y10.52%
Revenue Next Year6.08%
Revenue Next 2Y5.57%
Revenue Next 3Y5.67%
Revenue Next 5Y6.1%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.67 indicates a quite expensive valuation of 1ABB.
1ABB's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ABB is cheaper than 64.62% of the companies in the same industry.
1ABB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.50 indicates a rather expensive valuation of 1ABB.
1ABB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1ABB to the average of the S&P500 Index (23.13), we can say 1ABB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 24.5 |
4.2 Price Multiples
1ABB's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 33.63 | ||
| EV/EBITDA | 20.03 |
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.
1ABB's earnings are expected to grow with 14.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)2.75
EPS Next 2Y19.5%
EPS Next 3Y14.11%
5. Dividend
5.1 Amount
1ABB has a Yearly Dividend Yield of 1.52%.
1ABB's Dividend Yield is a higher than the industry average which is at 0.88.
1ABB's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| 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
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 2Y19.5%
EPS Next 3Y14.11%
BIT:1ABB (12/22/2025, 7:00:00 PM)
63.18
+0.44 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap117.50B
Revenue(TTM)34.51B
Net Income(TTM)4.45B
Analysts68
Price Target60.05 (-4.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.82
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)0%
PT rev (3m)N/A
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 24.5 | ||
| P/S | 4 | ||
| P/FCF | 33.63 | ||
| P/OCF | 27.42 | ||
| P/B | 9.22 | ||
| P/tB | 56.15 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)2.06
EY3.26%
EPS(NY)2.58
Fwd EY4.08%
FCF(TTM)1.88
FCFY2.97%
OCF(TTM)2.3
OCFY3.65%
SpS15.79
BVpS6.85
TBVpS1.13
PEG (NY)1.35
PEG (5Y)2.75
Graham Number17.82
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 | 5 |
F-Score7
WACC5.34%
ROIC/WACC3.22
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 Y22.8%
EPS Next 2Y19.5%
EPS Next 3Y14.11%
EPS Next 5Y10.52%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.08%
Revenue Next 2Y5.57%
Revenue Next 3Y5.67%
Revenue Next 5Y6.1%
EBIT growth 1Y18.87%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.01%
EBIT Next 3Y15.43%
EBIT Next 5Y11.65%
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 of ABB LTD-REG (1ABB.MI) 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.
What is the valuation of ABB LTD-REG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ABB LTD-REG (1ABB.MI) is 30.67 and the Price/Book (PB) ratio is 9.22.
Can you provide the dividend sustainability for 1ABB stock?
The dividend rating of ABB LTD-REG (1ABB.MI) is 4 / 10 and the dividend payout ratio is 42.87%.