ABBVIE INC (ABBV)
US00287Y1091 - Common Stock
ABBV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 588 industry peers in the Biotechnology industry. While ABBV belongs to the best of the industry regarding profitability, 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.
1. Profitability
1.1 Basic Checks
ABBV had positive earnings in the past year.
ABBV had a positive operating cash flow in the past year.
ABBV had positive earnings in each of the past 5 years.
In the past 5 years ABBV always reported a positive cash flow from operatings.
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.
Looking at the Return On Invested Capital, with a value of 14.17%, ABBV belongs to the top of the industry, outperforming 97.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABBV is in line with the industry average of 13.58%.
| Industry Rank | Sector 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 has a Profit Margin of 8.87%. This is amongst the best in the industry. ABBV outperforms 95.89% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
ABBV has a Operating Margin of 30.47%. This is amongst the best in the industry. ABBV outperforms 98.46% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
ABBV has a better Gross Margin (66.45%) than 82.53% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ABBV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ABBV has about the same amount of shares outstanding.
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 2.19. 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.
ABBV's Altman-Z score of 2.19 is fine compared to the rest of the industry. ABBV outperforms 72.60% of its industry peers.
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.
ABBV has a Debt to FCF ratio of 2.69. This is amongst the best in the industry. ABBV outperforms 95.38% of its industry peers.
ABBV has a Debt/Equity ratio of 5.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ABBV (5.04) is worse than 84.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.04 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 2.19 |
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's Current ratio of 0.87 is on the low side compared to the rest of the industry. ABBV is outperformed by 90.24% of its industry peers.
ABBV has a Quick Ratio of 0.87. 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 (0.76) is worse than 92.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.76 |
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.
ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.65% yearly.
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
ABBV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.10, which indicates a correct 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 97.26% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. ABBV is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.71, ABBV is valued correctly.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 97.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, ABBV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaper than 96.92% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 13.61 |
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)5.64
PEG (5Y)2.15
EPS Next 2Y5.86%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.77%.
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.
ABBV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector 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 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)10.41%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ABBV pays out 218.70% of its income as dividend. This is not a sustainable payout ratio.
ABBV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP218.7%
EPS Next 2Y5.86%
EPS Next 3Y7.37%
ABBVIE INC
NYSE:ABBV (4/24/2024, 7:04:00 PM)
After market: 167.8 0 (0%)167.8
-1.74 (-1.03%)
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 Cap297.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 14.71 | ||
| 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)5.64
PEG (5Y)2.15
Profitability
| Industry Rank | Sector 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 Rank | Sector 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