ABBVIE INC (ABBV) Stock Fundamental Analysis
USA - NYSE:ABBV - US00287Y1091 - Common Stock
232.83 USD
+2.64 (+1.15%)
233.2 USD
+0.37 (+0.16%)
Overall ABBV gets a fundamental rating of 5 out of 10. We evaluated ABBV against 536 industry peers in the Biotechnology industry. ABBV scores excellent on profitability, but there are concerns on its financial health. ABBV is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years ABBV has been profitable.
ABBV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 2.71%, ABBV belongs to the best of the industry, outperforming 90.86% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.81%, ABBV belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
ABBV had an Average Return On Invested Capital over the past 3 years of 13.67%. This is in line with the industry average of 15.47%.
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 91.60% of the companies in the same industry.
ABBV's Profit Margin has declined in the last couple of years.
ABBV's Operating Margin of 31.27% is amongst the best of the industry. ABBV outperforms 97.01% of its industry peers.
ABBV's Operating Margin has declined in the last couple of years.
The Gross Margin of ABBV (70.93%) is better than 82.28% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABBV is still creating some value.
The number of shares outstanding for ABBV remains at a similar level compared to 1 year ago.
The number of shares outstanding for ABBV has been increased compared to 5 years ago.
The debt/assets ratio for ABBV is higher compared to a year ago.
2.2 Solvency
ABBV has an Altman-Z score of 2.43. 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 has a Altman-Z score of 2.43. This is in the better half of the industry: ABBV outperforms 66.42% of its industry peers.
The Debt to FCF ratio of ABBV is 3.86, which is a good value as it means it would take ABBV, 3.86 years of fcf income to pay off all of its debts.
ABBV has a Debt to FCF ratio of 3.86. This is amongst the best in the industry. ABBV outperforms 93.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.48
WACC9.33%
2.3 Liquidity
A Current Ratio of 0.74 indicates that ABBV may have some problems paying its short term obligations.
The Current ratio of ABBV (0.74) is worse than 90.49% 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 has a worse Quick ratio (0.61) than 91.60% 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.
ABBV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.51% yearly.
Looking at the last year, ABBV shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
ABBV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.11% yearly.
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
Based on estimates for the next years, ABBV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.59% on average per year.
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
A Price/Earnings ratio of 21.99 indicates a rather expensive valuation of ABBV.
94.40% 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 27.76.
ABBV is valuated correctly with a Price/Forward Earnings ratio of 16.00.
94.22% of the companies in the same industry are more expensive than ABBV, based on the Price/Forward Earnings ratio.
ABBV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABBV is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
ABBV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABBV is cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.55 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
ABBV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ABBV 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)1.04
PEG (5Y)8.76
EPS Next 2Y19.9%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
ABBV has a Yearly Dividend Yield of 2.77%.
ABBV's Dividend Yield is rather good when compared to the industry average which is at 164.23. ABBV pays more dividend than 98.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ABBV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 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%
232.83
+2.64 (+1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners74.42%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0.1%
Market Cap411.31B
Analysts79.46
Price Target232.38 (-0.19%)
Short Float %0.94%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)5.02%
PT rev (3m)7.64%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 16 | ||
| P/S | 7.05 | ||
| P/FCF | 22.55 | ||
| P/OCF | 21.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)10.59
EY4.55%
EPS(NY)14.55
Fwd EY6.25%
FCF(TTM)10.32
FCFY4.43%
OCF(TTM)10.92
OCFY4.69%
SpS33.02
BVpS-0.1
TBVpS-52.56
PEG (NY)1.04
PEG (5Y)8.76
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 2.43 |
F-Score6
WACC9.33%
ROIC/WACC1.48
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%