ABBVIE INC (ABBV) Stock Fundamental Analysis
NYSE:ABBV - New York Stock Exchange, Inc. - US00287Y1091 - Common Stock - Currency: USD
Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 561 industry peers in the Biotechnology industry. ABBV has an excellent profitability rating, but there are concerns on its financial health. ABBV is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years ABBV has always been profitable.
Each year in the past 5 years ABBV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABBV (3.05%) is better than 91.80% of its industry peers.
Looking at the Return On Equity, with a value of 292.61%, ABBV belongs to the top of the industry, outperforming 99.82% of the companies in the same industry.
ABBV's Return On Invested Capital of 13.43% is amongst the best of the industry. ABBV outperforms 96.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABBV is below the industry average of 15.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROIC | 13.43% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
1.3 Margins
Looking at the Profit Margin, with a value of 7.24%, ABBV belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
In the last couple of years the Profit Margin of ABBV has declined.
ABBV has a Operating Margin of 30.43%. This is amongst the best in the industry. ABBV outperforms 97.68% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a better Gross Margin (70.69%) than 81.82% of its industry peers.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% |
OM growth 3Y-5.46%
OM growth 5Y-6.07%
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABBV is creating some value.
The number of shares outstanding for ABBV remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABBV has more shares outstanding
The debt/assets ratio for ABBV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.13 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ABBV has a Altman-Z score of 2.13. This is in the better half of the industry: ABBV outperforms 73.08% of its industry peers.
The Debt to FCF ratio of ABBV is 4.54, which is a neutral value as it means it would take ABBV, 4.54 years of fcf income to pay off all of its debts.
ABBV's Debt to FCF ratio of 4.54 is amongst the best of the industry. ABBV outperforms 93.76% of its industry peers.
A Debt/Equity ratio of 46.56 is on the high side and indicates that ABBV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 46.56, ABBV is doing worse than 85.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.41
WACC9.55%
2.3 Liquidity
A Current Ratio of 0.76 indicates that ABBV may have some problems paying its short term obligations.
With a Current ratio value of 0.76, ABBV is not doing good in the industry: 91.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Quick ratio of 0.64 is on the low side compared to the rest of the industry. ABBV is outperformed by 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased by -6.30% in the last year.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.45%.
ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
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 12.92% on average per year.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y23.49%
EPS Next 2Y18.89%
EPS Next 3Y16.07%
EPS Next 5Y12.92%
Revenue Next Year6.89%
Revenue Next 2Y7.51%
Revenue Next 3Y7.32%
Revenue Next 5Y6.41%
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 17.72 indicates a rather expensive valuation of ABBV.
Compared to the rest of the industry, the Price/Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 95.37% of the companies listed in the same industry.
ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 12.72, which indicates a correct valuation of ABBV.
ABBV's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 95.01% of the companies in the same industry.
ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
95.01% of the companies in the same industry are more expensive than ABBV, based on the Enterprise Value to EBITDA ratio.
95.37% of the companies in the same industry are more expensive than ABBV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.92 | ||
| EV/EBITDA | 15.12 |
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.
The decent profitability rating of ABBV may justify a higher PE ratio.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 16.07% in the coming years.
PEG (NY)0.75
PEG (5Y)7.06
EPS Next 2Y18.89%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.61%.
Compared to an average industry Dividend Yield of 108.78, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.29% of the companies listed in the same industry.
ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 7.72%!
ABBV has been paying a dividend for at least 10 years, so it has a reliable track record.
ABBV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.72%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ABBV pays out 269.03% of its income as dividend. This is not a sustainable payout ratio.
ABBV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP269.03%
EPS Next 2Y18.89%
EPS Next 3Y16.07%
NYSE:ABBV (5/21/2025, 1:24:09 PM)
181.96
-2.89 (-1.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change1.61%
Ins Owners0.07%
Ins Owner Change2.84%
Market Cap321.88B
Analysts80
Price Target217.89 (19.75%)
Short Float %1.12%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP269.03%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.58%
Min EPS beat(2)0.02%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.84%
Min EPS beat(4)0.02%
Max EPS beat(4)1.28%
EPS beat(8)7
Avg EPS beat(8)0.85%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.22%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)1.23%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)5
Avg Revenue beat(16)-0.82%
PT rev (1m)-0.84%
PT rev (3m)4.8%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)4.89%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 12.72 | ||
| P/S | 5.61 | ||
| P/FCF | 20.92 | ||
| P/OCF | 19.63 | ||
| P/B | 226.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.12 |
EPS(TTM)10.27
EY5.64%
EPS(NY)14.31
Fwd EY7.86%
FCF(TTM)8.7
FCFY4.78%
OCF(TTM)9.27
OCFY5.1%
SpS32.43
BVpS0.8
TBVpS-52.21
PEG (NY)0.75
PEG (5Y)7.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 292.61% | ||
| ROCE | 17.5% | ||
| ROIC | 13.43% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 565.94% | ||
| OM | 30.43% | ||
| PM (TTM) | 7.24% | ||
| GM | 70.69% | ||
| FCFM | 26.82% |
ROA(3y)5.07%
ROA(5y)5.21%
ROE(3y)80.76%
ROE(5y)70.31%
ROIC(3y)13.67%
ROIC(5y)12.6%
ROICexc(3y)15.06%
ROICexc(5y)13.83%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.54%
ROCE(5y)16.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.81%
ROICexc growth 5Y-14.46%
OM growth 3Y-5.46%
OM growth 5Y-6.07%
PM growth 3Y-28.3%
PM growth 5Y-20.42%
GM growth 3Y0.39%
GM growth 5Y-1.92%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 12.17% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 370.28% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.13 |
F-Score6
WACC9.55%
ROIC/WACC1.41
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)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
EPS Next Y23.49%
EPS Next 2Y18.89%
EPS Next 3Y16.07%
EPS Next 5Y12.92%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.89%
Revenue Next 2Y7.51%
Revenue Next 3Y7.32%
Revenue Next 5Y6.41%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year26.56%
EBIT Next 3Y15.91%
EBIT Next 5Y10.36%
FCF growth 1Y-34.59%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-32.31%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%