ABB LTD-SPON ADR (ABB)
US0003752047 - ADR
We assign a fundamental rating of 6 out of 10 to ABB. ABB was compared to 86 industry peers in the Electrical Equipment industry. ABB scores excellent on profitability, but there are some minor concerns on its financial health. ABB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABB was profitable.
ABB had a positive operating cash flow in the past year.
In the past 5 years ABB has always been profitable.
ABB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.26%, ABB belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
With an excellent Return On Equity value of 23.78%, ABB belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
ABB's Return On Invested Capital of 13.39% is amongst the best of the industry. ABB outperforms 90.59% of its industry peers.
ABB had an Average Return On Invested Capital over the past 3 years of 10.12%. This is in line with the industry average of 10.34%.
The 3 year average ROIC (10.12%) for ABB is below the current ROIC(13.39%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
ABB has a Profit Margin of 9.58%. This is amongst the best in the industry. ABB outperforms 88.24% of its industry peers.
ABB's Profit Margin has been stable in the last couple of years.
ABB has a Operating Margin of 12.81%. This is amongst the best in the industry. ABB outperforms 84.71% of its industry peers.
In the last couple of years the Operating Margin of ABB has grown nicely.
Looking at the Gross Margin, with a value of 33.50%, ABB is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Gross Margin of ABB has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ABB is creating value.
Compared to 1 year ago, ABB has less shares outstanding
Compared to 5 years ago, ABB has less shares outstanding
Compared to 1 year ago, ABB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.33 indicates that ABB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, ABB is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 6.17 | ||
| Altman-Z | 3.33 |
ROIC/WACC2.21
WACC6.05%
2.3 Liquidity
ABB has a Current Ratio of 1.15. This is a normal value and indicates that ABB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ABB (1.15) is worse than 85.88% of its industry peers.
A Quick Ratio of 0.80 indicates that ABB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, ABB is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.41% over the past year.
The Earnings Per Share has been growing by 9.04% on average over the past years. This is quite good.
ABB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.59%.
ABB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.17% yearly.
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y9.04%
EPS growth Q2Q47.37%
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y3.17%
Revenue growth Q2Q12.84%
3.2 Future
ABB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.03% yearly.
ABB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of ABB.
Based on the Price/Earnings ratio, ABB is valued cheaper than 84.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, ABB is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.27 indicates a rather expensive valuation of ABB.
Based on the Price/Forward Earnings ratio, ABB is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ABB to the average of the S&P500 Index (20.72), we can say ABB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
ABB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABB is cheaper than 81.18% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.22 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
ABB has an outstanding 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%
5. Dividend
5.1 Amount
ABB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ABB LTD-SPON ADR
NYSE:ABB (5/22/2023, 7:15:14 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap69.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 23.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.81% | ||
| PM (TTM) | 9.58% | ||
| GM | 33.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.41%
EPS 3Y15.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.59%
Revenue growth 3Y1.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y