ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABBV - US00287Y1091 - Common Stock
227.66 USD
-4.14 (-1.79%)
227.6 USD
-0.06 (-0.03%)
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 533 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV is not valued too expensively and it also shows a decent growth rate. Finally ABBV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ABBV was profitable.
ABBV had a positive operating cash flow in the past year.
Each year in the past 5 years ABBV has been profitable.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABBV has a better Return On Assets (1.75%) than 89.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.64%, ABBV belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABBV is significantly below the industry average of 18.83%.
The last Return On Invested Capital (15.64%) for ABBV is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROIC | 15.64% |
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
ABBV has a Profit Margin of 3.94%. This is amongst the best in the industry. ABBV outperforms 89.87% of its industry peers.
ABBV's Profit Margin has declined in the last couple of years.
The Operating Margin of ABBV (33.05%) is better than 97.00% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
With an excellent Gross Margin value of 71.16%, ABBV belongs to the best of the industry, outperforming 81.99% of the companies in the same industry.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% |
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 well above the Cost of Capital (WACC), so ABBV is creating value.
Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
The number of shares outstanding for ABBV has been increased compared to 5 years ago.
ABBV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.45 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 2.45, ABBV is doing good in the industry, outperforming 68.48% of the companies in the same industry.
ABBV has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as ABBV would need 3.49 years to pay back of all of its debts.
The Debt to FCF ratio of ABBV (3.49) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.89
WACC8.27%
2.3 Liquidity
ABBV has a Current Ratio of 0.72. This is a bad value and indicates that ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
ABBV has a worse Current ratio (0.72) than 89.68% of its industry peers.
ABBV has a Quick Ratio of 0.72. This is a bad value and indicates that ABBV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.60, ABBV is doing worse than 91.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
ABBV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.09%.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 7.40% in the last year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
3.2 Future
ABBV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.65% yearly.
Based on estimates for the next years, ABBV will show a small growth in Revenue. The Revenue will grow by 7.31% on average per year.
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.65%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.31%
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 accelerating.
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
A Price/Earnings ratio of 24.09 indicates a rather expensive valuation of ABBV.
Based on the Price/Earnings ratio, ABBV is valued cheaper than 93.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (26.15), we can say ABBV is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of ABBV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 95.68% of the companies listed in the same industry.
ABBV is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
94.56% of the companies in the same industry are more expensive than ABBV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 94.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.43 | ||
| EV/EBITDA | 16.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 16.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.82
PEG (5Y)9.6
EPS Next 2Y19.75%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.02%.
ABBV's Dividend Yield is rather good when compared to the industry average which is at 74.20. ABBV pays more dividend than 99.06% of the companies in the same industry.
ABBV's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
ABBV has been paying a dividend for at least 10 years, so it has 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
489.69% 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.
DP489.69%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
227.66
-4.14 (-1.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.71%
Ins Owners0.05%
Ins Owner Change-0.57%
Market Cap402.18B
Revenue(TTM)59.64B
Net Income(TTM)2.35B
Analysts78.92
Price Target248.59 (9.19%)
Short Float %1.07%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP489.69%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.85%
Min EPS beat(2)0.95%
Max EPS beat(2)2.75%
EPS beat(4)4
Avg EPS beat(4)1.21%
Min EPS beat(4)0.02%
Max EPS beat(4)2.75%
EPS beat(8)7
Avg EPS beat(8)0.95%
EPS beat(12)9
Avg EPS beat(12)0.65%
EPS beat(16)11
Avg EPS beat(16)0.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.31%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)5
Avg Revenue beat(16)-0.74%
PT rev (1m)6.98%
PT rev (3m)12.34%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-12.33%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 15.69 | ||
| P/S | 6.74 | ||
| P/FCF | 20.43 | ||
| P/OCF | 19.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.5 |
EPS(TTM)9.45
EY4.15%
EPS(NY)14.51
Fwd EY6.37%
FCF(TTM)11.14
FCFY4.89%
OCF(TTM)11.81
OCFY5.19%
SpS33.76
BVpS-1.5
TBVpS-52.41
PEG (NY)3.82
PEG (5Y)9.6
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | N/A | ||
| ROCE | 20.86% | ||
| ROIC | 15.64% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 572.43% | ||
| OM | 33.05% | ||
| PM (TTM) | 3.94% | ||
| GM | 71.16% | ||
| FCFM | 33% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 14.25% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.59% | ||
| Profit Quality | 838.33% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.45 |
F-Score7
WACC8.27%
ROIC/WACC1.89
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)-12.09%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%-38%
EPS Next Y6.31%
EPS Next 2Y19.75%
EPS Next 3Y16.76%
EPS Next 5Y13.65%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%9.1%
Revenue Next Year8.37%
Revenue Next 2Y8.77%
Revenue Next 3Y8.33%
Revenue Next 5Y7.31%
EBIT growth 1Y27.38%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
EBIT Next 5Y11.09%
FCF growth 1Y-20.4%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-18.24%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%
ABBVIE INC / ABBV FAQ
Can you provide the ChartMill fundamental rating for ABBVIE INC?
ChartMill assigns a fundamental rating of 5 / 10 to ABBV.
Can you provide the valuation status for ABBVIE INC?
ChartMill assigns a valuation rating of 6 / 10 to ABBVIE INC (ABBV). This can be considered as Fairly Valued.
Can you provide the profitability details for ABBVIE INC?
ABBVIE INC (ABBV) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ABBVIE INC (ABBV) stock?
The Price/Earnings (PE) ratio for ABBVIE INC (ABBV) is 24.09 and the Price/Book (PB) ratio is -152.22.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.