ABBVIE INC (4AB.DE) Stock Fundamental Analysis
FRA:4AB - US00287Y1091 - Common Stock
182.8 EUR
+0.6 (+0.33%)
We assign a fundamental rating of 5 out of 10 to 4AB. 4AB was compared to 74 industry peers in the Biotechnology industry. While 4AB is still in line with the averages on profitability rating, 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
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 2.71%. This is in the better half of the industry: 4AB outperforms 77.03% of its industry peers.
4AB has a Return On Invested Capital of 13.81%. This is amongst the best in the industry. 4AB outperforms 89.19% 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 12.87%.
The 3 year average ROIC (13.67%) for 4AB 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
With a decent Profit Margin value of 6.38%, 4AB is doing good in the industry, outperforming 79.73% 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 31.27% is amongst the best of the industry. 4AB outperforms 89.19% of its industry peers.
4AB's Operating Margin has declined in the last couple of years.
4AB has a better Gross Margin (70.93%) than 66.22% of its industry peers.
In the last couple of years the Gross Margin of 4AB 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
4AB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
4AB has about the same amout of shares outstanding than it did 1 year ago.
4AB has more shares outstanding than it did 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 2.30. 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.
The Altman-Z score of 4AB (2.30) is better than 67.57% of its industry peers.
The Debt to FCF ratio of 4AB is 3.86, which is a good value as it means it would take 4AB, 3.86 years of fcf income to pay off all of its debts.
4AB's Debt to FCF ratio of 3.86 is amongst the best of the industry. 4AB outperforms 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.46
WACC9.49%
2.3 Liquidity
4AB has a Current Ratio of 0.74. This is a bad value and indicates that 4AB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.74, 4AB is not doing good in the industry: 79.73% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that 4AB may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, 4AB is not doing good in the industry: 82.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for 4AB have decreased by -1.03% in the last year.
4AB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
4AB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
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)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.
The Revenue is expected to grow by 7.00% on average over the next years.
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
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 20.11, the valuation of 4AB can be described as rather expensive.
Based on the Price/Earnings ratio, 4AB is valued cheaper than 85.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of 4AB to the average of the S&P500 Index (27.03), we can say 4AB is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.67, which indicates a correct valuation of 4AB.
4AB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 4AB is cheaper than 83.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 4AB to the average of the S&P500 Index (22.63), we can say 4AB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
4AB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 4AB is cheaper than 82.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 4AB is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
4AB's 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 16.65% in the coming years.
PEG (NY)0.95
PEG (5Y)8.01
EPS Next 2Y19.74%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
4AB has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 12.87, 4AB pays a better dividend. On top of this 4AB pays more dividend than 94.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 4AB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
4AB pays out 304.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 4AB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP304.54%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
FRA:4AB (9/4/2025, 7:00:00 PM)
182.8
+0.6 (+0.33%)
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 Cap322.93B
Analysts78.82
Price Target190.65 (4.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend5.36
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years4
Div Non Decr Years4
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)3.11%
PT rev (3m)-0.72%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 14.67 | ||
| P/S | 6.45 | ||
| P/FCF | 20.62 | ||
| P/OCF | 19.5 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)9.09
EY4.97%
EPS(NY)12.46
Fwd EY6.82%
FCF(TTM)8.86
FCFY4.85%
OCF(TTM)9.37
OCFY5.13%
SpS28.35
BVpS-0.09
TBVpS-45.13
PEG (NY)0.95
PEG (5Y)8.01
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 | 2.3 |
F-Score6
WACC9.49%
ROIC/WACC1.46
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%