ABBVIE INC (1ABBV.MI) Stock Fundamental Analysis
BIT:1ABBV - Euronext Milan - US00287Y1091 - Common Stock - Currency: EUR
Overall 1ABBV gets a fundamental rating of 5 out of 10. We evaluated 1ABBV against 73 industry peers in the Biotechnology industry. 1ABBV has an excellent profitability rating, but there are concerns on its financial health. 1ABBV is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
1ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1ABBV (3.05%) is better than 79.45% of its industry peers.
1ABBV's Return On Equity of 292.61% is amongst the best of the industry. 1ABBV outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.43%, 1ABBV belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ABBV is in line with the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROIC | 13.43% |
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 better Profit Margin (7.24%) than 82.19% of its industry peers.
In the last couple of years the Profit Margin of 1ABBV has declined.
With an excellent Operating Margin value of 30.43%, 1ABBV belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
1ABBV's Operating Margin has declined in the last couple of years.
The Gross Margin of 1ABBV (70.69%) is better than 67.12% of its industry peers.
1ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% |
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
1ABBV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1ABBV has about the same amount of shares outstanding.
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
1ABBV has an Altman-Z score of 2.10. This is not the best score and indicates that 1ABBV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.10, 1ABBV is in the better half of the industry, outperforming 64.38% of the companies in the same industry.
1ABBV has a debt to FCF ratio of 4.54. This is a neutral value as 1ABBV would need 4.54 years to pay back of all of its debts.
1ABBV's Debt to FCF ratio of 4.54 is amongst the best of the industry. 1ABBV outperforms 83.56% of its industry peers.
1ABBV has a Debt/Equity ratio of 46.56. This is a high value indicating a heavy dependency on external financing.
1ABBV has a Debt to Equity ratio of 46.56. This is in the lower half of the industry: 1ABBV underperforms 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.54
WACC8.7%
2.3 Liquidity
A Current Ratio of 0.76 indicates that 1ABBV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, 1ABBV is doing worse than 76.71% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that 1ABBV may have some problems paying its short term obligations.
The Quick ratio of 1ABBV (0.64) is worse than 78.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
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%.
1ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
1ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
1ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
EPS 1Y (TTM)-1.03%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%12.08%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
3.2 Future
1ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.01% yearly.
Based on estimates for the next years, 1ABBV will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y22.41%
EPS Next 2Y18.82%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue Next Year7.1%
Revenue Next 2Y7.62%
Revenue Next 3Y7.47%
Revenue Next 5Y6.55%
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
With a Price/Earnings ratio of 17.22, 1ABBV is valued on the expensive side.
1ABBV's Price/Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 84.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.99, 1ABBV is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.77, 1ABBV is valued correctly.
1ABBV's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ABBV is cheaper than 94.52% of the companies in the same industry.
1ABBV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 12.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ABBV indicates a rather cheap valuation: 1ABBV is cheaper than 80.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1ABBV is valued cheaper than 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.95 | ||
| EV/EBITDA | 14.93 |
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 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)6.86
EPS Next 2Y18.82%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
1ABBV has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 12.16, 1ABBV pays a better dividend. On top of this 1ABBV pays more dividend than 95.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 1ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
269.03% of the earnings are spent on dividend by 1ABBV. This is not a sustainable payout ratio.
The dividend of 1ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.03%
EPS Next 2Y18.82%
EPS Next 3Y16.07%
BIT:1ABBV (7/21/2025, 7:00:00 PM)
160
-6 (-3.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap282.62B
Analysts78.82
Price Target188.83 (18.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend5.48
Dividend Growth(5Y)7.72%
DP269.03%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.02%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.84%
Min EPS beat(4)0.02%
Max EPS beat(4)1.28%
EPS beat(8)7
Avg EPS beat(8)0.85%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.82%
PT rev (1m)0.4%
PT rev (3m)1.05%
EPS NQ rev (1m)-10.58%
EPS NQ rev (3m)-9.98%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 12.77 | ||
| P/S | 5.62 | ||
| P/FCF | 20.95 | ||
| P/OCF | 19.65 | ||
| P/B | 226.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.93 |
EPS(TTM)9.29
EY5.81%
EPS(NY)12.53
Fwd EY7.83%
FCF(TTM)7.64
FCFY4.77%
OCF(TTM)8.14
OCFY5.09%
SpS28.48
BVpS0.7
TBVpS-45.85
PEG (NY)0.77
PEG (5Y)6.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROCE | 17.5% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 565.94% | ||
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% | ||
| FCFM | 26.82% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 12.17% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 370.28% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.1 |
F-Score6
WACC8.7%
ROIC/WACC1.54
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 Y22.41%
EPS Next 2Y18.82%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year7.1%
Revenue Next 2Y7.62%
Revenue Next 3Y7.47%
Revenue Next 5Y6.55%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year22.05%
EBIT Next 3Y14.64%
EBIT Next 5Y10.77%
FCF growth 1Y-34.59%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-32.31%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%