ABBVIE INC (4AB.DE) Stock Fundamental Analysis
FRA:4AB - Deutsche Boerse Ag - US00287Y1091 - Common Stock - Currency: EUR
Taking everything into account, 4AB scores 5 out of 10 in our fundamental rating. 4AB was compared to 71 industry peers in the Biotechnology industry. 4AB has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on 4AB.
1. Profitability
1.1 Basic Checks
4AB had positive earnings in the past year.
4AB had a positive operating cash flow in the past year.
In the past 5 years 4AB has always been profitable.
In the past 5 years 4AB always reported a positive cash flow from operatings.
1.2 Ratios
4AB has a better Return On Assets (3.14%) than 80.28% of its industry peers.
4AB has a better Return On Equity (127.46%) than 98.59% of its industry peers.
The Return On Invested Capital of 4AB (13.34%) is better than 88.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 4AB is in line with the industry average of 13.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROIC | 13.34% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
1.3 Margins
Looking at the Profit Margin, with a value of 7.52%, 4AB belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
In the last couple of years the Profit Margin of 4AB has declined.
4AB's Operating Margin of 29.28% is amongst the best of the industry. 4AB outperforms 88.73% of its industry peers.
In the last couple of years the Operating Margin of 4AB has declined.
With a decent Gross Margin value of 69.99%, 4AB is doing good in the industry, outperforming 67.61% of the companies in the same industry.
4AB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% |
OM growth 3Y-5.46%
OM growth 5Y-6.07%
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), 4AB is creating some value.
Compared to 1 year ago, 4AB has about the same amount of shares outstanding.
The number of shares outstanding for 4AB has been increased compared to 5 years ago.
The debt/assets ratio for 4AB is higher compared to a year ago.
2.2 Solvency
4AB has an Altman-Z score of 2.20. This is not the best score and indicates that 4AB is in the grey zone with still only limited risk for bankruptcy at the moment.
4AB's Altman-Z score of 2.20 is fine compared to the rest of the industry. 4AB outperforms 71.83% of its industry peers.
4AB has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as 4AB would need 3.77 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.77, 4AB belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
4AB has a Debt/Equity ratio of 18.15. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.15, 4AB is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.37
WACC9.72%
2.3 Liquidity
A Current Ratio of 0.66 indicates that 4AB may have some problems paying its short term obligations.
4AB has a Current ratio of 0.66. This is in the lower half of the industry: 4AB underperforms 77.46% of its industry peers.
4AB has a Quick Ratio of 0.66. This is a bad value and indicates that 4AB is not financially healthy enough and could expect problems in meeting its short term obligations.
4AB has a worse Quick ratio (0.55) than 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for 4AB have decreased by -6.30% in the last year.
Measured over the past 5 years, 4AB shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
The Revenue has been growing slightly by 3.71% in the past year.
Measured over the past years, 4AB shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
3.2 Future
4AB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
4AB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue Next Year6.18%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
Revenue Next 5Y6.41%
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
A Price/Earnings ratio of 19.14 indicates a rather expensive valuation of 4AB.
Based on the Price/Earnings ratio, 4AB is valued cheaper than 84.51% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.18, 4AB is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.86 indicates a correct valuation of 4AB.
4AB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 88.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. 4AB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4AB is valued a bit cheaper than 78.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 4AB is valued cheaper than 84.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.49 | ||
| EV/EBITDA | 16.44 |
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.
4AB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 4AB's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)0.83
PEG (5Y)7.62
EPS Next 2Y18.35%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, 4AB has a reasonable but not impressive dividend return.
4AB's Dividend Yield is rather good when compared to the industry average which is at 9.28. 4AB pays more dividend than 97.18% of the companies in the same industry.
4AB's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
On average, the dividend of 4AB grows each year by 7.72%, which is quite nice.
Dividend Growth(5Y)7.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
4AB pays out 260.15% of its income as dividend. This is not a sustainable payout ratio.
4AB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP260.15%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
FRA:4AB (5/2/2025, 7:00:00 PM)
173.2
+3.8 (+2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap306.39B
Analysts80
Price Target189.63 (9.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend5.5
Dividend Growth(5Y)7.72%
DP260.15%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.46%
Min EPS beat(2)0.02%
Max EPS beat(2)0.9%
EPS beat(4)4
Avg EPS beat(4)0.98%
Min EPS beat(4)0.02%
Max EPS beat(4)1.73%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.2%
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)3
Avg Revenue beat(8)0.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)-5.67%
PT rev (3m)-3.61%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 13.86 | ||
| P/S | 6.17 | ||
| P/FCF | 19.49 | ||
| P/OCF | 18.48 | ||
| P/B | 104.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.44 |
EPS(TTM)9.05
EY5.23%
EPS(NY)12.5
Fwd EY7.22%
FCF(TTM)8.89
FCFY5.13%
OCF(TTM)9.37
OCFY5.41%
SpS28.07
BVpS1.66
TBVpS-45.7
PEG (NY)0.83
PEG (5Y)7.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROCE | 17.11% | ||
| ROIC | 13.34% | ||
| ROICexc | 14.16% | ||
| ROICexgc | N/A | ||
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% | ||
| FCFM | 31.65% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
ROICexc(3y)15.06%
ROICexc(5y)13.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.46%
OM growth 3Y-5.46%
OM growth 5Y-6.07%
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 | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 11.61% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 5.87 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 420.77% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.2 |
F-Score6
WACC9.72%
ROIC/WACC1.37
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)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
EPS Next Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.18%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
Revenue Next 5Y6.41%
EBIT growth 1Y-0.34%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year26.56%
EBIT Next 3Y15.91%
EBIT Next 5Y10.36%
FCF growth 1Y-19.17%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-17.66%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%