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 555 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are concerns on its financial health. ABBV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ABBV also has an excellent dividend rating.
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.
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 3.05%. This is amongst the best in the industry. ABBV outperforms 91.71% of its industry peers.
With an excellent Return On Equity value of 292.61%, ABBV belongs to the best of the industry, outperforming 99.82% of the companies in the same industry.
The Return On Invested Capital of ABBV (13.43%) is better than 96.22% 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 14.78%.
| 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
ABBV's Profit Margin of 7.24% is amongst the best of the industry. ABBV outperforms 92.25% of its industry peers.
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 97.66% of its industry peers.
In the last couple of years the Operating Margin of ABBV has declined.
With an excellent Gross Margin value of 70.69%, ABBV belongs to the best of the industry, outperforming 81.98% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABBV is still 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 a worse debt to assets ratio.
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.
With a decent Altman-Z score value of 2.13, ABBV is doing good in the industry, outperforming 70.45% of the companies in the same industry.
ABBV has a debt to FCF ratio of 4.54. This is a neutral value as ABBV would need 4.54 years to pay back of all of its debts.
The Debt to FCF ratio of ABBV (4.54) is better than 93.33% of its industry peers.
ABBV has a Debt/Equity ratio of 46.56. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ABBV (46.56) is worse than 85.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 46.56 | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.67
WACC8.03%
2.3 Liquidity
ABBV has a Current Ratio of 0.76. 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 Current ratio of 0.76 is on the low side compared to the rest of the industry. ABBV is outperformed by 90.09% of its industry peers.
ABBV has a Quick Ratio of 0.76. 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 (0.64) than 91.17% 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.
The Earnings Per Share has been growing slightly by 2.51% on average over the past years.
The Revenue has been growing slightly by 5.45% in the past year.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 13.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
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
The Price/Earnings ratio is 18.50, which indicates a rather expensive current valuation of ABBV.
95.32% of the companies in the same industry are more expensive than ABBV, based on the Price/Earnings ratio.
ABBV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 13.28 indicates a correct valuation of ABBV.
Based on the Price/Forward Earnings ratio, ABBV is valued cheaper than 94.59% 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 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
95.14% of the companies in the same industry are more expensive than ABBV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABBV is valued cheaper than 94.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 15.15 |
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.
ABBV's earnings are expected to grow with 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)7.37
EPS Next 2Y18.9%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 96.38, ABBV pays a better dividend. On top of this ABBV pays more dividend than 99.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ABBV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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 2Y18.9%
EPS Next 3Y16.07%
189.99
+4.37 (+2.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner Change1.66%
Ins Owners0.05%
Ins Owner Change2.84%
Market Cap335.60B
Analysts78.82
Price Target215.89 (13.63%)
Short Float %0.83%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)-0.92%
PT rev (3m)1.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.5 | ||
| Fwd PE | 13.28 | ||
| P/S | 5.85 | ||
| P/FCF | 21.81 | ||
| P/OCF | 20.46 | ||
| P/B | 236.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.15 |
EPS(TTM)10.27
EY5.41%
EPS(NY)14.31
Fwd EY7.53%
FCF(TTM)8.71
FCFY4.58%
OCF(TTM)9.28
OCFY4.89%
SpS32.48
BVpS0.8
TBVpS-52.28
PEG (NY)0.79
PEG (5Y)7.37
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
WACC8.03%
ROIC/WACC1.67
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 Y23.45%
EPS Next 2Y18.9%
EPS Next 3Y16.07%
EPS Next 5Y13.01%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y0.08%
Revenue growth 5Y11.11%
Sales Q2Q%8.39%
Revenue Next Year6.87%
Revenue Next 2Y7.53%
Revenue Next 3Y7.35%
Revenue Next 5Y6.55%
EBIT growth 1Y9.32%
EBIT growth 3Y-5.38%
EBIT growth 5Y4.37%
EBIT Next Year22.05%
EBIT Next 3Y14.64%
EBIT Next 5Y10.77%
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%