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 73 industry peers in the Biotechnology industry. While 4AB belongs to the best of the industry regarding profitability, there are concerns on its financial health. 4AB may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year 4AB was profitable.
4AB had a positive operating cash flow in the past year.
4AB had positive earnings in each of the past 5 years.
4AB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
4AB has a Return On Assets of 3.05%. This is in the better half of the industry: 4AB outperforms 79.45% of its industry peers.
4AB's Return On Equity of 292.61% is amongst the best of the industry. 4AB outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.43%, 4AB belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 4AB 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
The Profit Margin of 4AB (7.24%) is better than 82.19% of its industry peers.
In the last couple of years the Profit Margin of 4AB has declined.
With an excellent Operating Margin value of 30.43%, 4AB belongs to the best of the industry, outperforming 91.78% of the companies in the same industry.
4AB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 70.69%, 4AB is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
In the last couple of years the Gross Margin of 4AB has declined.
| 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
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.
4AB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 indicates that 4AB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.23, 4AB is doing good in the industry, outperforming 65.75% of the companies in the same industry.
The Debt to FCF ratio of 4AB is 4.54, which is a neutral value as it means it would take 4AB, 4.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 4AB (4.54) is better than 83.56% of its industry peers.
4AB has a Debt/Equity ratio of 46.56. This is a high value indicating a heavy dependency on external financing.
4AB's Debt to Equity ratio of 46.56 is on the low side compared to the rest of the industry. 4AB is outperformed by 75.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.26
WACC10.7%
2.3 Liquidity
4AB has a Current Ratio of 0.76. This is a bad value and indicates that 4AB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.76, 4AB is doing worse than 78.08% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that 4AB may have some problems paying its short term obligations.
The Quick ratio of 4AB (0.64) is worse than 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
4AB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
4AB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
Looking at the last year, 4AB shows a small growth in Revenue. The Revenue has grown by 3.71% in the last 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)-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
4AB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.01% yearly.
4AB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.55% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.64, the valuation of 4AB can be described as rather expensive.
4AB's Price/Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 84.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. 4AB is valued slightly cheaper when compared to this.
4AB is valuated correctly with a Price/Forward Earnings ratio of 13.82.
Based on the Price/Forward Earnings ratio, 4AB is valued cheaply inside the industry as 91.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, 4AB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4AB is valued cheaply inside the industry as 80.82% of the companies are valued more expensively.
4AB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 4AB is cheaper than 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 16.01 |
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 4AB may justify a higher PE ratio.
4AB's earnings are expected to grow with 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)7.42
EPS Next 2Y18.82%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, 4AB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 12.16, 4AB pays a better dividend. On top of this 4AB pays more dividend than 97.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 4AB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of 4AB is nicely growing with an annual growth rate of 7.72%!
Dividend Growth(5Y)7.72%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
269.03% of the earnings are spent on dividend by 4AB. This is not a sustainable payout ratio.
The dividend of 4AB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP269.03%
EPS Next 2Y18.82%
EPS Next 3Y16.07%
FRA:4AB (8/8/2025, 7:00:00 PM)
169.6
-0.6 (-0.35%)
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 Cap299.58B
Analysts78.82
Price Target184.89 (9.02%)
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 Years4
Div Non Decr Years4
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)-2.06%
PT rev (3m)-2.5%
EPS NQ rev (1m)-10.58%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 13.82 | ||
| P/S | 6.08 | ||
| P/FCF | 22.67 | ||
| P/OCF | 21.27 | ||
| P/B | 245.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.01 |
EPS(TTM)9.1
EY5.37%
EPS(NY)12.27
Fwd EY7.24%
FCF(TTM)7.48
FCFY4.41%
OCF(TTM)7.97
OCFY4.7%
SpS27.89
BVpS0.69
TBVpS-44.91
PEG (NY)0.83
PEG (5Y)7.42
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 | 2.23 |
F-Score6
WACC10.7%
ROIC/WACC1.26
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%