ABBVIE INC (ABBV) Stock Fundamental Analysis
NYSE:ABBV - US00287Y1091 - Common Stock
210.6 USD
+1.1 (+0.53%)
210.6 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 547 industry peers in the Biotechnology industry. While ABBV belongs to the best of the industry regarding profitability, there are concerns on its financial health. ABBV may be a bit undervalued, certainly considering the very reasonable score on growth Finally ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ABBV was profitable.
In the past year ABBV had a positive cash flow from operations.
ABBV had positive earnings in each of the past 5 years.
Each year in the past 5 years ABBV had a positive operating cash flow.
1.2 Ratios
ABBV has a Return On Assets of 2.71%. This is amongst the best in the industry. ABBV outperforms 90.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.81%, ABBV belongs to the top of the industry, outperforming 95.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABBV is below the industry average of 16.04%.
The last Return On Invested Capital (13.81%) for ABBV is above the 3 year average (13.67%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 6.38%, ABBV belongs to the top of the industry, outperforming 91.62% of the companies in the same industry.
ABBV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 31.27%, ABBV belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
In the last couple of years the Operating Margin of ABBV has declined.
With an excellent Gross Margin value of 70.93%, ABBV belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
In the last couple of years the Gross Margin of ABBV 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABBV is still creating some value.
Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
ABBV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABBV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.28 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.28, ABBV is doing good in the industry, outperforming 70.67% of the companies in the same industry.
ABBV has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as ABBV would need 3.86 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.86, ABBV belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.46
WACC9.47%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a worse Current ratio (0.74) than 90.53% of its industry peers.
ABBV has a Quick Ratio of 0.74. This is a bad value and indicates that ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ABBV (0.61) is worse than 91.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
ABBV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.03%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 6.05% in the past year.
Measured over the past years, ABBV 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
Based on estimates for the next years, ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.02% on average per year.
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
ABBV is valuated rather expensively with a Price/Earnings ratio of 19.89.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ABBV is valued a bit cheaper.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 14.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 95.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.81. ABBV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaply inside the industry as 94.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 94.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.4 | ||
| EV/EBITDA | 16.24 |
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.
ABBV has a very decent profitability rating, which may justify a higher PE ratio.
ABBV's earnings are expected to grow with 16.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)7.92
EPS Next 2Y19.74%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 96.44, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.54% of the companies listed in the same industry.
ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
ABBV has paid a dividend for at least 10 years, which is a reliable track record.
ABBV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
304.54% of the earnings are spent on dividend by ABBV. This is not a sustainable payout ratio.
The dividend of ABBV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP304.54%
EPS Next 2Y19.74%
EPS Next 3Y16.65%
210.6
+1.1 (+0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.78%
Inst Owner Change-0.56%
Ins Owners0.05%
Ins Owner Change-16.56%
Market Cap372.04B
Analysts78.82
Price Target221.28 (5.07%)
Short Float %0.86%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP304.54%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)2.48%
PT rev (3m)1.56%
EPS NQ rev (1m)0.79%
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)1.28%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 14.51 | ||
| P/S | 6.38 | ||
| P/FCF | 20.4 | ||
| P/OCF | 19.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.24 |
EPS(TTM)10.59
EY5.03%
EPS(NY)14.51
Fwd EY6.89%
FCF(TTM)10.32
FCFY4.9%
OCF(TTM)10.92
OCFY5.18%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)0.94
PEG (5Y)7.92
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 | 2.28 |
F-Score6
WACC9.47%
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%