ABBVIE INC (ABBV)

US00287Y1091 - Common Stock

168.71  +2.3 (+1.38%)

Fundamental Rating

5

Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 588 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are some minor concerns on its financial health. ABBV has a valuation in line with the averages, but it does not seem to be growing.



7

1. Profitability

1.1 Basic Checks

ABBV had positive earnings in the past year.
In the past year ABBV had a positive cash flow from operations.
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 Return On Assets of 3.58%. This is amongst the best in the industry. ABBV outperforms 95.55% of its industry peers.
ABBV has a better Return On Equity (46.52%) than 99.32% of its industry peers.
ABBV has a better Return On Invested Capital (14.17%) than 97.60% of its industry peers.
ABBV had an Average Return On Invested Capital over the past 3 years of 14.65%. This is in line with the industry average of 13.58%.
Industry RankSector Rank
ROA 3.58%
ROE 46.52%
ROIC 14.17%
ROA(3y)6.63%
ROA(5y)6.34%
ROE(3y)63.08%
ROE(5y)N/A
ROIC(3y)14.65%
ROIC(5y)13.57%

1.3 Margins

ABBV's Profit Margin of 8.87% is amongst the best of the industry. ABBV outperforms 95.89% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
With an excellent Operating Margin value of 30.47%, ABBV belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Operating Margin of ABBV has declined.
Looking at the Gross Margin, with a value of 66.45%, ABBV belongs to the top of the industry, outperforming 82.53% of the companies in the same industry.
In the last couple of years the Gross Margin of ABBV has declined.
Industry RankSector Rank
OM 30.47%
PM (TTM) 8.87%
GM 66.45%
OM growth 3Y2.22%
OM growth 5Y-3.73%
PM growth 3Y-3.73%
PM growth 5Y-12.47%
GM growth 3Y-0.12%
GM growth 5Y-2.89%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABBV is creating some value.
ABBV has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABBV has more shares outstanding
Compared to 1 year ago, ABBV has an improved debt to assets ratio.

2.2 Solvency

ABBV has an Altman-Z score of 2.18. This is not the best score and indicates that ABBV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, ABBV is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
ABBV has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as ABBV would need 2.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.69, ABBV belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
A Debt/Equity ratio of 5.04 is on the high side and indicates that ABBV has dependencies on debt financing.
The Debt to Equity ratio of ABBV (5.04) is worse than 84.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.04
Debt/FCF 2.69
Altman-Z 2.18
ROIC/WACC1.72
WACC8.24%

2.3 Liquidity

A Current Ratio of 0.87 indicates that ABBV may have some problems paying its short term obligations.
ABBV has a Current ratio of 0.87. This is amonst the worse of the industry: ABBV underperforms 90.24% of its industry peers.
A Quick Ratio of 0.76 indicates that ABBV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, ABBV is doing worse than 92.12% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.76

3

3. Growth

3.1 Past

The earnings per share for ABBV have decreased strongly by -19.90% in the last year.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.03% yearly.
The Revenue has decreased by -6.44% in the past year.
The Revenue has been growing by 10.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.9%
EPS 3Y1.87%
EPS 5Y7.03%
EPS growth Q2Q-22.5%
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Revenue growth Q2Q-5.42%

3.2 Future

The Earnings Per Share is expected to grow by 6.55% on average over the next years.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y2.68%
EPS Next 2Y5.86%
EPS Next 3Y7.37%
EPS Next 5Y6.55%
Revenue Next Year0.94%
Revenue Next 2Y3.51%
Revenue Next 3Y4.71%
Revenue Next 5Y3.15%

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 decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.19, ABBV is valued correctly.
Based on the Price/Earnings ratio, ABBV is valued cheaper than 97.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABBV to the average of the S&P500 Index (24.75), we can say ABBV is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.79, which indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 97.43% of the companies in the same industry.
ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.23.
Industry RankSector Rank
PE 15.19
Fwd PE 14.79

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 96.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 98.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.54
EV/EBITDA 13.51

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.
PEG (NY)5.67
PEG (5Y)2.16
EPS Next 2Y5.86%
EPS Next 3Y7.37%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.77%, ABBV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 24.26, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ABBV pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.77%

5.2 History

On average, the dividend of ABBV grows each year by 10.41%, 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)10.41%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

218.70% of the earnings are spent on dividend by ABBV. This is not a sustainable payout ratio.
The dividend of ABBV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP218.7%
EPS Next 2Y5.86%
EPS Next 3Y7.37%

ABBVIE INC

NYSE:ABBV (4/22/2024, 9:55:03 AM)

168.71

+2.3 (+1.38%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap298.73B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.77%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 15.19
Fwd PE 14.79
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)5.67
PEG (5Y)2.16
Profitability
Industry RankSector Rank
ROA 3.58%
ROE 46.52%
ROCE
ROIC
ROICexc
ROICexgc
OM 30.47%
PM (TTM) 8.87%
GM 66.45%
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 Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 5.04
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.87
Quick Ratio 0.76
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)-19.9%
EPS 3Y1.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.85%
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