ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
227.99 USD
-0.26 (-0.11%)
228 USD
0.01 (0%)
Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 534 industry peers in the Biotechnology industry. While ABBV has a great profitability rating, there are quite some 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.
In the past year ABBV had a positive cash flow from operations.
Each year in the past 5 years ABBV has been profitable.
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 90.82% of its industry peers.
ABBV has a Return On Invested Capital of 13.81%. This is amongst the best in the industry. ABBV outperforms 95.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABBV is in line with the industry average of 15.49%.
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 91.57% of the companies in the same industry.
In the last couple of years the Profit Margin of ABBV has declined.
Looking at the Operating Margin, with a value of 31.27%, ABBV belongs to the top of the industry, outperforming 97.00% 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 70.93%, ABBV belongs to the top of the industry, outperforming 82.21% 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
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.
ABBV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ABBV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.42 indicates that ABBV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, ABBV is in the better half of the industry, outperforming 66.67% 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 93.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.52
WACC9.11%
2.3 Liquidity
ABBV has a Current 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.
ABBV has a worse Current ratio (0.74) than 90.07% 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.
ABBV's Quick ratio of 0.61 is on the low side compared to the rest of the industry. ABBV is outperformed by 91.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased by -1.03% in the last year.
Measured over the past 5 years, ABBV shows a small growth in Earnings Per Share. The EPS has been growing by 2.51% on average per year.
ABBV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 13.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 21.53, which indicates a rather expensive current valuation of ABBV.
ABBV's Price/Earnings ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.94% of the companies in the same industry.
ABBV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
The Price/Forward Earnings ratio is 15.67, which indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 94.38% 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 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 94.19% of the companies listed 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 94.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.08 | ||
| EV/EBITDA | 17.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)8.58
EPS Next 2Y19.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, ABBV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 93.65, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of ABBV is nicely growing with an annual growth rate of 7.72%!
ABBV has paid a dividend for at least 10 years, which is 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 304.54% of its income as dividend. 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 2Y19.9%
EPS Next 3Y16.83%
227.99
-0.26 (-0.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change-0.27%
Ins Owners0.05%
Ins Owner Change0.1%
Market Cap402.76B
Revenue(TTM)58.33B
Net Income(TTM)3.72B
Analysts79.46
Price Target232.38 (1.93%)
Short Float %0.94%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)3.86%
PT rev (3m)7.64%
EPS NQ rev (1m)-15.29%
EPS NQ rev (3m)-13.85%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 15.67 | ||
| P/S | 6.91 | ||
| P/FCF | 22.08 | ||
| P/OCF | 20.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.42 |
EPS(TTM)10.59
EY4.64%
EPS(NY)14.55
Fwd EY6.38%
FCF(TTM)10.32
FCFY4.53%
OCF(TTM)10.92
OCFY4.79%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)1.02
PEG (5Y)8.58
Graham NumberN/A
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%
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-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 | 2.42 |
F-Score6
WACC9.11%
ROIC/WACC1.52
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 Y21.19%
EPS Next 2Y19.9%
EPS Next 3Y16.83%
EPS Next 5Y13.59%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%6.65%
Revenue Next Year8.21%
Revenue Next 2Y8.6%
Revenue Next 3Y8.22%
Revenue Next 5Y7.22%
EBIT growth 1Y13.81%
EBIT growth 3Y-5.38%
EBIT growth 5Y3.87%
EBIT Next Year20.95%
EBIT Next 3Y15.22%
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%
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 21.53 and the Price/Book (PB) ratio is -2200.86.
Can you provide the financial health for ABBV stock?
The financial health rating of ABBVIE INC (ABBV) is 3 / 10.