ABB LTD-SPON ADR (ABB) Stock Fundamental Analysis
USA - NYSE:ABB - US0003752047 - ADR
37.13 USD
-0.43 (-1.14%)
37.15 USD
+0.02 (+0.05%)
Taking everything into account, ABB scores 5 out of 10 in our fundamental rating. ABB was compared to 91 industry peers in the Electrical Equipment industry. ABB scores excellent on profitability, but there are some minor concerns on its financial health. ABB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ABB had positive earnings in the past year.
ABB had a positive operating cash flow in the past year.
ABB had positive earnings in each of the past 5 years.
ABB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ABB (7.26%) is better than 84.71% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 13.39%, ABB belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
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 10.42%.
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
Looking at the Profit Margin, with a value of 9.58%, ABB belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
ABB's Profit Margin has been stable in the last couple of years.
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.
The Gross Margin of ABB (33.50%) is better than 77.65% of its industry peers.
ABB's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABB is creating value.
The number of shares outstanding for ABB has been reduced compared to 1 year ago.
The debt/assets ratio for ABB is higher compared to a year ago.
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.
ABB has a better Altman-Z score (3.33) than 65.88% of its industry peers.
ABB has a debt to FCF ratio of 6.17. This is a slightly negative value and a sign of low solvency as ABB would need 6.17 years to pay back of all of its debts.
ABB's Debt to FCF ratio of 6.17 is fine compared to the rest of the industry. ABB outperforms 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.
ABB has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: ABB underperforms 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
A Current Ratio of 1.15 indicates that ABB should not have too much problems paying its short term obligations.
ABB's Current ratio of 1.15 is on the low side compared to the rest of the industry. ABB is outperformed by 85.88% of its industry peers.
A Quick Ratio of 0.80 indicates that ABB may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, ABB is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ABB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.41%, which is quite impressive.
Measured over the past years, ABB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
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
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.
The Revenue is expected to grow by 5.34% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.51, the valuation of ABB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ABB indicates a rather cheap valuation: ABB is cheaper than 84.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, ABB is valued a bit cheaper.
ABB is valuated rather expensively with a Price/Forward Earnings ratio of 20.27.
70.59% of the companies in the same industry are more expensive than ABB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.42, ABB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABB is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ABB is valued a bit cheaper than the industry average as 75.29% of the companies are valued more expensively.
| 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 |
37.13
-0.43 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.11%
Inst Owner Change22.74%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
What is the fundamental rating for ABB stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABB.
What is the valuation status for ABB stock?
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 are the PE and PB ratios of ABB LTD-SPON ADR (ABB) stock?
The Price/Earnings (PE) ratio for ABB LTD-SPON ADR (ABB) is 17.51 and the Price/Book (PB) ratio is 5.65.
Can you provide the expected EPS growth for ABB stock?
The Earnings per Share (EPS) of ABB LTD-SPON ADR (ABB) is expected to decline by -13.26% in the next year.