ABB LTD-REG (1ABB.MI) Stock Fundamental Analysis
BIT:1ABB - Euronext Milan - CH0012221716 - Common Stock - Currency: EUR
1ABB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Electrical Equipment industry. 1ABB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
1ABB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1ABB (9.78%) is better than 95.00% of its industry peers.
1ABB's Return On Equity of 29.75% is amongst the best of the industry. 1ABB outperforms 98.33% of its industry peers.
1ABB has a better Return On Invested Capital (16.36%) than 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ABB is significantly above the industry average of 8.40%.
The 3 year average ROIC (14.75%) for 1ABB is below the current ROIC(16.36%), indicating increased profibility in the last year.
| 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's Profit Margin of 12.47% is amongst the best of the industry. 1ABB outperforms 95.00% of its industry peers.
In the last couple of years the Profit Margin of 1ABB has grown nicely.
1ABB has a Operating Margin of 17.09%. This is amongst the best in the industry. 1ABB outperforms 91.67% of its industry peers.
1ABB's Operating Margin has improved in the last couple of years.
1ABB has a Gross Margin (38.99%) which is in line with its industry peers.
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.
Compared to 1 year ago, 1ABB has about the same amount of shares outstanding.
1ABB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ABB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.57 indicates that 1ABB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.57, 1ABB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
1ABB has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as 1ABB would need 2.36 years to pay back of 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 81.67% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that 1ABB is somewhat dependend on debt financing.
1ABB has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: 1ABB underperforms 63.33% of 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 | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.57 |
ROIC/WACC3.35
WACC4.88%
2.3 Liquidity
A Current Ratio of 1.37 indicates that 1ABB should not have too much problems paying its short term obligations.
1ABB's Current ratio of 1.37 is in line compared to the rest of the industry. 1ABB outperforms 43.33% of its industry peers.
A Quick Ratio of 0.97 indicates that 1ABB may have some problems paying its short term obligations.
1ABB's Quick ratio of 0.97 is in line compared to the rest of the industry. 1ABB outperforms 55.00% 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 | 1.37 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.09% over the past year.
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.
The Revenue has been growing slightly by 3.88% in the past year.
1ABB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)10.09%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%6.42%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%8.02%
3.2 Future
1ABB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.26% yearly.
1ABB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y10.26%
Revenue Next Year6.07%
Revenue Next 2Y5.87%
Revenue Next 3Y5.69%
Revenue Next 5Y4.41%
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
Based on the Price/Earnings ratio of 28.59, the valuation of 1ABB can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1ABB indicates a somewhat cheap valuation: 1ABB is cheaper than 66.67% of the companies listed in the same industry.
1ABB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
1ABB is valuated rather expensively with a Price/Forward Earnings ratio of 23.95.
1ABB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1ABB to the average of the S&P500 Index (34.04), we can say 1ABB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 23.95 |
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 | 32.4 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
1ABB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1ABB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)2.56
EPS Next 2Y13.02%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
1ABB has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, 1ABB pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, 1ABB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 2Y13.02%
EPS Next 3Y11.57%
BIT:1ABB (8/1/2025, 7:00:00 PM)
55.76
-0.76 (-1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap103.70B
Analysts66.11
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.84
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)-17.17%
EPS NQ rev (3m)-17.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.65%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 23.95 | ||
| P/S | 3.6 | ||
| P/FCF | 32.4 | ||
| P/OCF | 26.11 | ||
| P/B | 8.58 | ||
| P/tB | 78.86 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)1.95
EY3.5%
EPS(NY)2.33
Fwd EY4.18%
FCF(TTM)1.72
FCFY3.09%
OCF(TTM)2.14
OCFY3.83%
SpS15.51
BVpS6.5
TBVpS0.71
PEG (NY)1.75
PEG (5Y)2.56
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%
ROICexcg growth 3Y10.23%
ROICexcg 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 | 4.57 |
F-ScoreN/A
WACC4.88%
ROIC/WACC3.35
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)10.09%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%6.42%
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y10.26%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%8.02%
Revenue Next Year6.07%
Revenue Next 2Y5.87%
Revenue Next 3Y5.69%
Revenue Next 5Y4.41%
EBIT growth 1Y12.71%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year26.41%
EBIT Next 3Y12.56%
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%