ABBVIE INC (ABBV)
US00287Y1091 - Common Stock
Taking everything into account, ABBV scores 5 out of 10 in our fundamental rating. ABBV was compared to 577 industry peers in the Biotechnology industry. While ABBV has a great profitability rating, there are some minor concerns on its financial health. ABBV is valued correctly, but it does not seem to be growing.
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.
In the past 5 years ABBV has always been profitable.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABBV has a better Return On Assets (4.00%) than 95.12% of its industry peers.
With an excellent Return On Equity value of 74.31%, ABBV belongs to the best of the industry, outperforming 99.48% of the companies in the same industry.
ABBV's Return On Invested Capital of 12.33% is amongst the best of the industry. ABBV outperforms 96.69% 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 14.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 74.31% | ||
| ROIC | 12.33% |
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 10.94% is amongst the best of the industry. ABBV outperforms 95.99% of its industry peers.
In the last couple of years the Profit Margin of ABBV has declined.
The Operating Margin of ABBV (29.35%) is better than 98.26% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
ABBV's Gross Margin of 66.30% is amongst the best of the industry. ABBV outperforms 82.23% of its industry peers.
In the last couple of years the Gross Margin of ABBV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.35% | ||
| PM (TTM) | 10.94% | ||
| GM | 66.3% |
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
The debt/assets ratio for ABBV has been reduced compared to a year ago.
2.2 Solvency
ABBV has an Altman-Z score of 2.00. 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 2.00 is fine compared to the rest of the industry. ABBV outperforms 70.38% of its industry peers.
ABBV has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as ABBV would need 3.38 years to pay back of all of its debts.
The Debt to FCF ratio of ABBV (3.38) is better than 95.99% of its industry peers.
A Debt/Equity ratio of 7.97 is on the high side and indicates that ABBV has dependencies on debt financing.
With a Debt to Equity ratio value of 7.97, ABBV is not doing good in the industry: 83.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.97 | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | 2 |
ROIC/WACC1.19
WACC10.39%
2.3 Liquidity
A Current Ratio of 0.94 indicates that ABBV may have some problems paying its short term obligations.
ABBV's Current ratio of 0.94 is on the low side compared to the rest of the industry. ABBV is outperformed by 89.20% of its industry peers.
ABBV has a Quick Ratio of 0.94. 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 0.83 is on the low side compared to the rest of the industry. ABBV is outperformed by 89.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for ABBV have decreased strongly by -16.27% in the last year.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
Looking at the last year, ABBV shows a decrease in Revenue. The Revenue has decreased by -4.12% in the last 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)-16.27%
EPS 3Y1.87%
EPS 5Y7.03%
EPS Q2Q%-6.1%
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y5.85%
Revenue growth 5Y10.65%
Sales Q2Q%0.7%
3.2 Future
Based on estimates for the next years, ABBV will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y3.23%
EPS Next 2Y5.22%
EPS Next 3Y7.49%
EPS Next 5Y7.98%
Revenue Next Year2.13%
Revenue Next 2Y3.89%
Revenue Next 3Y5.06%
Revenue Next 5Y5.43%
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
A Price/Earnings ratio of 16.62 indicates a correct valuation of ABBV.
Based on the Price/Earnings ratio, ABBV is valued cheaper than 98.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, ABBV is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.81 indicates a correct valuation of ABBV.
96.17% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
ABBV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABBV is cheaper than 96.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaply inside the industry as 98.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.7 | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABBV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ABBV may justify a higher PE ratio.
PEG (NY)5.14
PEG (5Y)2.36
EPS Next 2Y5.22%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 25.49, ABBV pays a better dividend. On top of this ABBV pays more dividend than 98.78% 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 178.99% 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.
DP178.99%
EPS Next 2Y5.22%
EPS Next 3Y7.49%
ABBVIE INC
NYSE:ABBV (7/25/2024, 7:04:00 PM)
After market: 182.71 +0.54 (+0.3%)182.17
+5.96 (+3.38%)
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 Cap321.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 14.81 | ||
| 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)5.14
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 74.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.35% | ||
| PM (TTM) | 10.94% | ||
| GM | 66.3% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.83 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.27%
EPS 3Y1.87%
EPS 5Y
EPS Q2Q%
EPS Next Y3.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y5.85%
Revenue growth 5Y
Sales 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