ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ABBV - US00287Y1091 - Common Stock
185 EUR
-3 (-1.6%)
Overall 1ABBV gets a fundamental rating of 5 out of 10. We evaluated 1ABBV against 86 industry peers in the Biotechnology industry. While 1ABBV is still in line with the averages on profitability rating, there are concerns on its financial health. 1ABBV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1ABBV had positive earnings in the past year.
- 1ABBV had a positive operating cash flow in the past year.
- Each year in the past 5 years 1ABBV has been profitable.
- In the past 5 years 1ABBV always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.75%, 1ABBV is in the better half of the industry, outperforming 75.58% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 15.64%, 1ABBV belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
- 1ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is above the industry average of 11.58%.
- The last Return On Invested Capital (15.64%) for 1ABBV is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROIC | 15.64% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.68%
1.3 Margins
- 1ABBV's Profit Margin of 3.94% is fine compared to the rest of the industry. 1ABBV outperforms 77.91% of its industry peers.
- In the last couple of years the Profit Margin of 1ABBV has declined.
- 1ABBV has a better Operating Margin (33.05%) than 89.53% of its industry peers.
- In the last couple of years the Operating Margin of 1ABBV has declined.
- 1ABBV's Gross Margin of 71.16% is fine compared to the rest of the industry. 1ABBV outperforms 62.79% of its industry peers.
- In the last couple of years the Gross Margin of 1ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% |
OM growth 3Y-5.46%
OM growth 5Y-6.52%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ABBV is creating value.
- The number of shares outstanding for 1ABBV remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1ABBV has been increased compared to 5 years ago.
- The debt/assets ratio for 1ABBV is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.37 indicates that 1ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1ABBV's Altman-Z score of 2.37 is fine compared to the rest of the industry. 1ABBV outperforms 69.77% of its industry peers.
- The Debt to FCF ratio of 1ABBV is 3.49, which is a good value as it means it would take 1ABBV, 3.49 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 3.49, 1ABBV belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.85
WACC8.44%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that 1ABBV may have some problems paying its short term obligations.
- 1ABBV's Current ratio of 0.72 is on the low side compared to the rest of the industry. 1ABBV is outperformed by 76.74% of its industry peers.
- A Quick Ratio of 0.60 indicates that 1ABBV may have some problems paying its short term obligations.
- With a Quick ratio value of 0.60, 1ABBV is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The earnings per share for 1ABBV have decreased strongly by -12.09% in the last year.
- Measured over the past 5 years, 1ABBV shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
- 1ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
- Measured over the past years, 1ABBV shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
3.2 Future
- Based on estimates for the next years, 1ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.67% on average per year.
- The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
EPS Next 5Y13.67%
Revenue Next Year8.74%
Revenue Next 2Y9.15%
Revenue Next 3Y8.74%
Revenue Next 5Y7.5%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1ABBV is valuated rather expensively with a Price/Earnings ratio of 22.92.
- Based on the Price/Earnings ratio, 1ABBV is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
- 1ABBV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.90, which indicates a correct valuation of 1ABBV.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 90.70% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
- 79.07% of the companies in the same industry are more expensive than 1ABBV, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 86.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 15.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of 1ABBV may justify a higher PE ratio.
- 1ABBV's earnings are expected to grow with 16.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.14
PEG (5Y)9.13
EPS Next 2Y19.85%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
- 1ABBV has a Yearly Dividend Yield of 3.19%.
- Compared to an average industry Dividend Yield of 0.75, 1ABBV pays a better dividend. On top of this 1ABBV pays more dividend than 96.51% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1ABBV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
- The dividend of 1ABBV is nicely growing with an annual growth rate of 7.72%!
Dividend Growth(5Y)7.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 489.69% of the earnings are spent on dividend by 1ABBV. This is not a sustainable payout ratio.
- 1ABBV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP489.69%
EPS Next 2Y19.85%
EPS Next 3Y16.87%
ABBVIE INC / 1ABBV.MI FAQ
Can you provide the ChartMill fundamental rating for ABBVIE INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1ABBV.MI.
What is the valuation status of ABBVIE INC (1ABBV.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to ABBVIE INC (1ABBV.MI). This can be considered as Fairly Valued.
What is the profitability of 1ABBV stock?
ABBVIE INC (1ABBV.MI) has a profitability rating of 6 / 10.
What is the valuation of ABBVIE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ABBVIE INC (1ABBV.MI) is 22.92 and the Price/Book (PB) ratio is -144.87.
Can you provide the dividend sustainability for 1ABBV stock?
The dividend rating of ABBVIE INC (1ABBV.MI) is 6 / 10 and the dividend payout ratio is 489.69%.