ABBVIE INC (ABBV) Stock Fundamental Analysis
NYSE:ABBV - New York Stock Exchange, Inc. - US00287Y1091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ABBV. ABBV was compared to 566 industry peers in the Biotechnology industry. While ABBV has a great profitability rating, there are quite some concerns on its financial health. ABBV may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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
With an excellent Return On Assets value of 3.14%, ABBV belongs to the best of the industry, outperforming 92.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 127.46%, ABBV belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.
ABBV has a better Return On Invested Capital (13.34%) than 96.64% 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 14.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROIC | 13.34% |
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
ABBV has a Profit Margin of 7.52%. This is amongst the best in the industry. ABBV outperforms 93.11% of its industry peers.
ABBV's Profit Margin has declined in the last couple of years.
ABBV has a Operating Margin of 29.28%. This is amongst the best in the industry. ABBV outperforms 97.88% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
Looking at the Gross Margin, with a value of 69.99%, ABBV belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
ABBV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% |
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
ABBV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ABBV has about the same amout of shares outstanding than it did 1 year ago.
ABBV has more shares outstanding than it did 5 years ago.
ABBV has a worse debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 2.18, ABBV is doing good in the industry, outperforming 74.03% of the companies in the same industry.
The Debt to FCF ratio of ABBV is 3.77, which is a good value as it means it would take ABBV, 3.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABBV (3.77) is better than 93.64% of its industry peers.
A Debt/Equity ratio of 18.15 is on the high side and indicates that ABBV has dependencies on debt financing.
ABBV has a worse Debt to Equity ratio (18.15) than 85.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.39
WACC9.6%
2.3 Liquidity
A Current Ratio of 0.66 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Current ratio of 0.66 is on the low side compared to the rest of the industry. ABBV is outperformed by 92.05% of its industry peers.
ABBV has a Quick Ratio of 0.66. 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 Quick ratio (0.55) than 92.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 |
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 3.71%.
Measured over the past years, ABBV shows a quite strong growth in Revenue. The Revenue has been growing by 11.11% on average per year.
EPS 1Y (TTM)-6.3%
EPS 3Y-7.24%
EPS 5Y2.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
ABBV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue Next Year6.18%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
Revenue Next 5Y6.41%
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
A Price/Earnings ratio of 19.00 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 96.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.88, ABBV is valued a bit cheaper.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 13.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 95.76% of the companies listed in the same industry.
ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaply inside the industry as 95.58% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABBV indicates a rather cheap valuation: ABBV is cheaper than 95.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 16.23 |
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.
ABBV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ABBV's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)0.82
PEG (5Y)7.57
EPS Next 2Y18.35%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.41%.
ABBV's Dividend Yield is rather good when compared to the industry average which is at 52.29. ABBV pays more dividend than 98.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
On average, the dividend of ABBV grows each year by 7.72%, which is quite nice.
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 260.15% 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.
DP260.15%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
195.1
+1.59 (+0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change0.81%
Ins Owners0.07%
Ins Owner Change2.18%
Market Cap345.13B
Analysts80.61
Price Target217.95 (11.71%)
Short Float %0.95%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend6.24
Dividend Growth(5Y)7.72%
DP260.15%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.46%
Min EPS beat(2)0.02%
Max EPS beat(2)0.9%
EPS beat(4)4
Avg EPS beat(4)0.98%
Min EPS beat(4)0.02%
Max EPS beat(4)1.73%
EPS beat(8)6
Avg EPS beat(8)0.48%
EPS beat(12)8
Avg EPS beat(12)0.35%
EPS beat(16)10
Avg EPS beat(16)0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)-0.2%
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)3
Avg Revenue beat(8)0.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.9%
PT rev (1m)2.68%
PT rev (3m)4.21%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-9.06%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 13.76 | ||
| P/S | 6.13 | ||
| P/FCF | 19.35 | ||
| P/OCF | 18.35 | ||
| P/B | 103.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.23 |
EPS(TTM)10.27
EY5.26%
EPS(NY)14.18
Fwd EY7.27%
FCF(TTM)10.08
FCFY5.17%
OCF(TTM)10.63
OCFY5.45%
SpS31.85
BVpS1.88
TBVpS-51.84
PEG (NY)0.82
PEG (5Y)7.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 127.46% | ||
| ROCE | 17.11% | ||
| ROIC | 13.34% | ||
| ROICexc | 14.16% | ||
| ROICexgc | N/A | ||
| OM | 29.28% | ||
| PM (TTM) | 7.52% | ||
| GM | 69.99% | ||
| FCFM | 31.65% |
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 | 18.15 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 11.61% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 5.87 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 420.77% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.18 |
F-Score6
WACC9.6%
ROIC/WACC1.39
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 Y23.11%
EPS Next 2Y18.35%
EPS Next 3Y15.64%
EPS Next 5Y12.92%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.18%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
Revenue Next 5Y6.41%
EBIT growth 1Y-0.34%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year26.56%
EBIT Next 3Y15.91%
EBIT Next 5Y10.36%
FCF growth 1Y-19.17%
FCF growth 3Y-6.75%
FCF growth 5Y6.9%
OCF growth 1Y-17.66%
OCF growth 3Y-6.19%
OCF growth 5Y7.14%