ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
Europe - BIT:1ABBV - US00287Y1091 - Common Stock
186.6 EUR
-4.2 (-2.2%)
Taking everything into account, 1ABBV scores 5 out of 10 in our fundamental rating. 1ABBV was compared to 77 industry peers in the Biotechnology industry. There are concerns on the financial health of 1ABBV while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1ABBV.
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.
1ABBV had positive earnings in each of the past 5 years.
1ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ABBV has a better Return On Assets (2.71%) than 79.22% of its industry peers.
1ABBV has a better Return On Invested Capital (13.81%) than 89.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ABBV is in line with the industry average of 13.10%.
The 3 year average ROIC (13.67%) for 1ABBV is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROIC | 13.81% |
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 has a Profit Margin of 6.38%. This is amongst the best in the industry. 1ABBV outperforms 81.82% of its industry peers.
1ABBV's Profit Margin has declined in the last couple of years.
1ABBV's Operating Margin of 31.27% is amongst the best of the industry. 1ABBV outperforms 89.61% of its industry peers.
In the last couple of years the Operating Margin of 1ABBV has declined.
The Gross Margin of 1ABBV (70.93%) is better than 67.53% of its industry peers.
In the last couple of years the Gross Margin of 1ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% |
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) just above the Cost of Capital (WACC), 1ABBV is creating some value.
1ABBV has about the same amout of shares outstanding than it did 1 year ago.
1ABBV has more shares outstanding than it did 5 years ago.
1ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 indicates that 1ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
1ABBV has a better Altman-Z score (2.35) than 64.94% of its industry peers.
The Debt to FCF ratio of 1ABBV is 3.86, which is a good value as it means it would take 1ABBV, 3.86 years of fcf income to pay off all of its debts.
1ABBV's Debt to FCF ratio of 3.86 is amongst the best of the industry. 1ABBV outperforms 83.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.45
WACC9.55%
2.3 Liquidity
A Current Ratio of 0.74 indicates that 1ABBV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, 1ABBV is doing worse than 77.92% of the companies in the same industry.
1ABBV has a Quick Ratio of 0.74. This is a bad value and indicates that 1ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
1ABBV's Quick ratio of 0.61 is on the low side compared to the rest of the industry. 1ABBV is outperformed by 79.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
1ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
Looking at the last year, 1ABBV shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
3.2 Future
The Earnings Per Share is expected to grow by 13.02% on average over the next years. This is quite good.
Based on estimates for the next years, 1ABBV will show a small growth in Revenue. The Revenue will grow by 7.00% on average per year.
EPS Next Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue Next Year8.23%
Revenue Next 2Y8.57%
Revenue Next 3Y8.14%
Revenue Next 5Y7%
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 accelerating.
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
With a Price/Earnings ratio of 20.71, 1ABBV is valued on the expensive side.
1ABBV's Price/Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1ABBV to the average of the S&P500 Index (27.06), we can say 1ABBV is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.12, 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 85.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.64. 1ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ABBV is valued cheaper than 81.82% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 83.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1ABBV may justify a higher PE ratio.
1ABBV's earnings are expected to grow with 16.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)8.25
EPS Next 2Y19.74%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, 1ABBV has a reasonable but not impressive dividend return.
1ABBV's Dividend Yield is rather good when compared to the industry average which is at 13.81. 1ABBV pays more dividend than 96.10% of the companies in the same industry.
1ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
On average, the dividend of 1ABBV grows each year by 7.72%, which is quite nice.
Dividend Growth(5Y)7.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ABBV pays out 304.54% of its income as dividend. This is not a sustainable payout ratio.
1ABBV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP304.54%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
BIT:1ABBV (9/24/2025, 7:00:00 PM)
186.6
-4.2 (-2.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.78%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap329.64B
Analysts78.92
Price Target188.54 (1.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend5.34
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.04%
Min EPS beat(2)0.95%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.75%
Min EPS beat(4)0.02%
Max EPS beat(4)1.14%
EPS beat(8)7
Avg EPS beat(8)0.76%
EPS beat(12)9
Avg EPS beat(12)0.46%
EPS beat(16)11
Avg EPS beat(16)0.4%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)-0.16%
PT rev (3m)-1.93%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 15.12 | ||
| P/S | 6.64 | ||
| P/FCF | 21.25 | ||
| P/OCF | 20.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.82 |
EPS(TTM)9.01
EY4.83%
EPS(NY)12.34
Fwd EY6.61%
FCF(TTM)8.78
FCFY4.71%
OCF(TTM)9.29
OCFY4.98%
SpS28.09
BVpS-0.09
TBVpS-44.71
PEG (NY)0.97
PEG (5Y)8.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | N/A | ||
| ROCE | 18.72% | ||
| ROIC | 13.81% | ||
| ROICexc | 14.74% | ||
| ROICexgc | 370.81% | ||
| OM | 31.27% | ||
| PM (TTM) | 6.38% | ||
| GM | 70.93% | ||
| FCFM | 31.27% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.68%
ROICexc(3y)15.06%
ROICexc(5y)13.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.27%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.87%
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%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 12.62% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.74% | ||
| Profit Quality | 489.9% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.35 |
F-Score6
WACC9.55%
ROIC/WACC1.45
Cap/Depr(3y)9.59%
Cap/Depr(5y)10.06%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.5%
Profit Quality(3y)361.43%
Profit Quality(5y)328.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
EPS Next Y21.26%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
EPS Next 5Y13.02%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.23%
Revenue Next 2Y8.57%
Revenue Next 3Y8.14%
Revenue Next 5Y7%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year19.96%
EBIT Next 3Y14.99%
EBIT Next 5Y11.27%
FCF growth 1Y-26.45%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-24.5%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%