ABB LTD-SPON ADR (ABB) Fundamental Analysis & Valuation

NYSE:ABB • US0003752047

Current stock price

37.13 USD
-0.43 (-1.14%)
At close:
37.15 USD
+0.02 (+0.05%)
After Hours:

This ABB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ABB Profitability Analysis

1.1 Basic Checks

  • ABB had positive earnings in the past year.
  • ABB had a positive operating cash flow in the past year.
ABB Yearly Net Income VS EBIT VS OCF VS FCFABB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

1.2 Ratios

  • The Return On Assets of ABB (7.26%) is better than 84.71% of its industry peers.
  • ABB has a Return On Equity of 23.78%. This is amongst the best in the industry. ABB outperforms 91.76% of its industry peers.
  • ABB's Return On Invested Capital of 13.39% is amongst the best of the industry. ABB outperforms 90.59% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ABB is in line with the industry average of 9.56%.
  • The last Return On Invested Capital (13.39%) for ABB is above the 3 year average (10.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.26%
ROE 23.78%
ROIC 13.39%
ROA(3y)10.05%
ROA(5y)7.63%
ROE(3y)27.12%
ROE(5y)21.51%
ROIC(3y)10.12%
ROIC(5y)8.59%
ABB Yearly ROA, ROE, ROICABB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 10 20 30

1.3 Margins

  • ABB's Profit Margin of 9.58% is amongst the best of the industry. ABB outperforms 88.24% of its industry peers.
  • In the last couple of years the Profit Margin of ABB has remained more or less at the same level.
  • ABB has a better Operating Margin (12.81%) than 84.71% of its industry peers.
  • ABB's Operating Margin has improved in the last couple of years.
  • ABB has a Gross Margin of 33.50%. This is in the better half of the industry: ABB outperforms 77.65% of its industry peers.
  • ABB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.81%
PM (TTM) 9.58%
GM 33.5%
OM growth 3Y19.92%
OM growth 5Y6.22%
PM growth 3Y17.79%
PM growth 5Y-0.88%
GM growth 3Y1.06%
GM growth 5Y0.78%
ABB Yearly Profit, Operating, Gross MarginsABB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. ABB Health Analysis

2.1 Basic Checks

  • ABB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, ABB has less shares outstanding
  • ABB has a worse debt/assets ratio than last year.
ABB Yearly Shares OutstandingABB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B
ABB Yearly Total Debt VS Total AssetsABB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

2.2 Solvency

  • ABB has an Altman-Z score of 3.33. This indicates that ABB is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ABB (3.33) is better than 65.88% of its industry peers.
  • The Debt to FCF ratio of ABB is 6.17, which is on the high side as it means it would take ABB, 6.17 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ABB (6.17) is better than 78.82% of its industry peers.
  • ABB has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of ABB (0.43) is worse than 65.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 6.17
Altman-Z 3.33
ROIC/WACC2.21
WACC6.05%
ABB Yearly LT Debt VS Equity VS FCFABB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.15 indicates that ABB should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.15, ABB is doing worse than 85.88% of the companies in the same industry.
  • ABB has a Quick Ratio of 1.15. This is a bad value and indicates that ABB is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ABB has a Quick ratio of 0.80. This is amonst the worse of the industry: ABB underperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 0.8
ABB Yearly Current Assets VS Current LiabilitesABB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ABB Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.41% over the past year.
  • ABB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
  • The Revenue has been growing slightly by 4.59% in the past year.
  • Measured over the past years, ABB shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y9.04%
EPS Q2Q%47.37%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y3.17%
Sales Q2Q%12.84%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.03% on average over the next years. This is quite good.
  • Based on estimates for the next years, ABB will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y-13.26%
EPS Next 2Y-2.88%
EPS Next 3Y1.22%
EPS Next 5Y9.03%
Revenue Next Year5.71%
Revenue Next 2Y4.82%
Revenue Next 3Y4.75%
Revenue Next 5Y5.34%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
ABB Yearly Revenue VS EstimatesABB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
ABB Yearly EPS VS EstimatesABB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

5

4. ABB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of ABB.
  • 84.71% of the companies in the same industry are more expensive than ABB, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.96. ABB is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 20.27 indicates a rather expensive valuation of ABB.
  • 70.59% of the companies in the same industry are more expensive than ABB, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of ABB to the average of the S&P500 Index (24.04), we can say ABB is valued inline with the index average.
Industry RankSector Rank
PE 17.51
Fwd PE 20.27
ABB Price Earnings VS Forward Price EarningsABB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 81.18% of the companies in the same industry are more expensive than ABB, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABB indicates a somewhat cheap valuation: ABB is cheaper than 75.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 49.22
EV/EBITDA 14.97
ABB Per share dataABB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ABB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-2.88%
EPS Next 3Y1.22%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ABB Dividend Analysis

5.1 Amount

  • No dividends for ABB!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

ABB Fundamentals: All Metrics, Ratios and Statistics

ABB LTD-SPON ADR

NYSE:ABB (5/22/2023, 8:15:14 PM)

After market: 37.15 +0.02 (+0.05%)

37.13

-0.43 (-1.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)04-25
Earnings (Next)07-20
Inst Owners0.11%
Inst Owner Change1.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap69.05B
Revenue(TTM)30.34B
Net Income(TTM)2.91B
Analysts72.12
Price Target38.91 (4.79%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP72.34%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.5%
Min EPS beat(2)1.02%
Max EPS beat(2)53.99%
EPS beat(4)4
Avg EPS beat(4)23.33%
Min EPS beat(4)1.02%
Max EPS beat(4)53.99%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.18%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-5.98%
Max Revenue beat(4)1.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.75%
PT rev (3m)10.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.2%
Valuation
Industry RankSector Rank
PE 17.51
Fwd PE 20.27
P/S 2.28
P/FCF 49.22
P/OCF 32.43
P/B 5.65
P/tB 123.09
EV/EBITDA 14.97
EPS(TTM)2.12
EY5.71%
EPS(NY)1.83
Fwd EY4.93%
FCF(TTM)0.75
FCFY2.03%
OCF(TTM)1.14
OCFY3.08%
SpS16.31
BVpS6.57
TBVpS0.3
PEG (NY)N/A
PEG (5Y)1.94
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.26%
ROE 23.78%
ROCE N/A
ROIC 13.39%
ROICexc 17.08%
ROICexgc 47.91%
OM 12.81%
PM (TTM) 9.58%
GM 33.5%
FCFM N/A
ROA(3y)10.05%
ROA(5y)7.63%
ROE(3y)27.12%
ROE(5y)21.51%
ROIC(3y)10.12%
ROIC(5y)8.59%
ROICexc(3y)12.91%
ROICexc(5y)10.74%
ROICexgc(3y)34.82%
ROICexgc(5y)28.24%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y33.86%
ROICexgc growth 5Y16.29%
ROICexc growth 3Y28.94%
ROICexc growth 5Y12.32%
OM growth 3Y19.92%
OM growth 5Y6.22%
PM growth 3Y17.79%
PM growth 5Y-0.88%
GM growth 3Y1.06%
GM growth 5Y0.78%
F-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 6.17
Debt/EBITDA 1.85
Cap/Depr 91.32%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 48.26%
Current Ratio 1.15
Quick Ratio 0.8
Altman-Z 3.33
F-Score7
WACC6.05%
ROIC/WACC2.21
Cap/Depr(3y)87.09%
Cap/Depr(5y)84.97%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)31.95%
Profit Quality(5y)60.7%
High Growth Momentum
Growth
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y9.04%
EPS Q2Q%47.37%
EPS Next Y-13.26%
EPS Next 2Y-2.88%
EPS Next 3Y1.22%
EPS Next 5Y9.03%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y3.17%
Sales Q2Q%12.84%
Revenue Next Year5.71%
Revenue Next 2Y4.82%
Revenue Next 3Y4.75%
Revenue Next 5Y5.34%
EBIT growth 1Y-34.08%
EBIT growth 3Y21.98%
EBIT growth 5Y9.58%
EBIT Next Year45.33%
EBIT Next 3Y17.05%
EBIT Next 5YN/A
FCF growth 1Y-34.44%
FCF growth 3Y-30.49%
FCF growth 5Y-29.65%
OCF growth 1Y-24.32%
OCF growth 3Y-17.89%
OCF growth 5Y-19.47%

ABB LTD-SPON ADR / ABB Fundamental Analysis FAQ

What is the fundamental rating for ABB stock?

ChartMill assigns a fundamental rating of 4 / 10 to ABB.


Can you provide the valuation status for ABB LTD-SPON ADR?

ChartMill assigns a valuation rating of 2 / 10 to ABB LTD-SPON ADR (ABB). This can be considered as Overvalued.


What is the profitability of ABB stock?

ABB LTD-SPON ADR (ABB) has a profitability rating of 6 / 10.


What is the financial health of ABB LTD-SPON ADR (ABB) stock?

The financial health rating of ABB LTD-SPON ADR (ABB) is 4 / 10.


Can you provide the dividend sustainability for ABB stock?

The dividend rating of ABB LTD-SPON ADR (ABB) is 0 / 10 and the dividend payout ratio is 72.34%.