ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
FRA:ABJ - CH0012221716 - Common Stock
57.9 EUR
+0.1 (+0.17%)
Overall ABJ gets a fundamental rating of 7 out of 10. We evaluated ABJ against 58 industry peers in the Electrical Equipment industry. ABJ has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ABJ has a correct valuation and a medium growth rate. These ratings would make ABJ suitable for quality investing!
1. Profitability
1.1 Basic Checks
ABJ had positive earnings in the past year.
ABJ had a positive operating cash flow in the past year.
ABJ had positive earnings in each of the past 5 years.
Each year in the past 5 years ABJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.78%, ABJ belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
With an excellent Return On Equity value of 29.75%, ABJ belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
ABJ has a better Return On Invested Capital (16.36%) than 94.83% of its industry peers.
ABJ had an Average Return On Invested Capital over the past 3 years of 14.75%. This is significantly above the industry average of 8.88%.
The 3 year average ROIC (14.75%) for ABJ is below the current ROIC(16.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 29.75% | ||
| ROIC | 16.36% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
1.3 Margins
ABJ's Profit Margin of 12.47% is amongst the best of the industry. ABJ outperforms 94.83% of its industry peers.
ABJ's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.09%, ABJ belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
ABJ's Operating Margin has improved in the last couple of years.
ABJ has a Gross Margin (38.99%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ABJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.09% | ||
| PM (TTM) | 12.47% | ||
| GM | 38.99% |
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ABJ is creating value.
ABJ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ABJ has been reduced compared to 5 years ago.
The debt/assets ratio for ABJ has been reduced compared to a year ago.
2.2 Solvency
ABJ has an Altman-Z score of 4.69. This indicates that ABJ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABJ (4.69) is better than 94.83% of its industry peers.
The Debt to FCF ratio of ABJ is 2.36, which is a good value as it means it would take ABJ, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABJ (2.36) is better than 84.48% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ABJ is somewhat dependend on debt financing.
ABJ's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. ABJ is outperformed by 60.34% of its industry peers.
Even though the debt/equity ratio score it not favorable for ABJ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.69 |
ROIC/WACC3.37
WACC4.86%
2.3 Liquidity
ABJ has a Current Ratio of 1.37. This is a normal value and indicates that ABJ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, ABJ is in line with its industry, outperforming 43.10% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that ABJ may have some problems paying its short term obligations.
ABJ has a Quick ratio of 0.97. This is comparable to the rest of the industry: ABJ outperforms 58.62% of its industry peers.
ABJ does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
ABJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.09%, which is quite good.
ABJ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.16% yearly.
Looking at the last year, ABJ shows a small growth in Revenue. The Revenue has grown by 3.88% in the last year.
Measured over the past years, ABJ shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
EPS 1Y (TTM)10.09%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%6.42%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%8.02%
3.2 Future
Based on estimates for the next years, ABJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y20.93%
EPS Next 2Y14.8%
EPS Next 3Y12.65%
EPS Next 5Y10.26%
Revenue Next Year6.33%
Revenue Next 2Y6.01%
Revenue Next 3Y5.79%
Revenue Next 5Y4.62%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ABJ is valuated quite expensively with a Price/Earnings ratio of 29.85.
Based on the Price/Earnings ratio, ABJ is valued a bit cheaper than 63.79% of the companies in the same industry.
ABJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
With a Price/Forward Earnings ratio of 24.25, ABJ is valued on the expensive side.
ABJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ABJ to the average of the S&P500 Index (22.76), we can say ABJ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ABJ.
The rest of the industry has a similar Price/Free Cash Flow ratio as ABJ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.85 | ||
| EV/EBITDA | 19.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ABJ has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ABJ's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)1.43
PEG (5Y)2.67
EPS Next 2Y14.8%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, ABJ has a reasonable but not impressive dividend return.
ABJ's Dividend Yield is rather good when compared to the industry average which is at 2.40. ABJ pays more dividend than 81.03% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ABJ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of ABJ has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABJ pays out 45.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ABJ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.55%
EPS Next 2Y14.8%
EPS Next 3Y12.65%
FRA:ABJ (9/1/2025, 7:00:00 PM)
57.9
+0.1 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap107.68B
Analysts70.29
Price Target55.25 (-4.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.82
Dividend Growth(5Y)4.13%
DP45.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.67%
Min EPS beat(2)-1.11%
Max EPS beat(2)8.44%
EPS beat(4)1
Avg EPS beat(4)-3.73%
Min EPS beat(4)-21.59%
Max EPS beat(4)8.44%
EPS beat(8)3
Avg EPS beat(8)-2.82%
EPS beat(12)6
Avg EPS beat(12)8.16%
EPS beat(16)9
Avg EPS beat(16)5.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)0.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.54%
Revenue beat(12)4
Avg Revenue beat(12)-1.9%
Revenue beat(16)5
Avg Revenue beat(16)-2.39%
PT rev (1m)3.84%
PT rev (3m)4.52%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-16.51%
EPS NY rev (1m)3.92%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 24.25 | ||
| P/S | 3.76 | ||
| P/FCF | 33.85 | ||
| P/OCF | 27.28 | ||
| P/B | 8.96 | ||
| P/tB | 82.4 | ||
| EV/EBITDA | 19.46 |
EPS(TTM)1.94
EY3.35%
EPS(NY)2.39
Fwd EY4.12%
FCF(TTM)1.71
FCFY2.95%
OCF(TTM)2.12
OCFY3.67%
SpS15.41
BVpS6.46
TBVpS0.7
PEG (NY)1.43
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 29.75% | ||
| ROCE | 21.2% | ||
| ROIC | 16.36% | ||
| ROICexc | 20.24% | ||
| ROICexgc | 46.75% | ||
| OM | 17.09% | ||
| PM (TTM) | 12.47% | ||
| GM | 38.99% | ||
| FCFM | 11.1% |
ROA(3y)8.41%
ROA(5y)9.81%
ROE(3y)24.82%
ROE(5y)27.29%
ROIC(3y)14.75%
ROIC(5y)12.48%
ROICexc(3y)19.32%
ROICexc(5y)16.24%
ROICexgc(3y)54.6%
ROICexgc(5y)45.35%
ROCE(3y)19.26%
ROCE(5y)16.22%
ROICexcg growth 3Y10.23%
ROICexcg growth 5Y26.05%
ROICexc growth 3Y12.7%
ROICexc growth 5Y25.08%
OM growth 3Y8.23%
OM growth 5Y17.64%
PM growth 3Y-8.63%
PM growth 5Y18.42%
GM growth 3Y4.39%
GM growth 5Y3.2%
F-ScoreN/A
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 111.14% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 20.71 | ||
| Cash Conversion | 70.65% | ||
| Profit Quality | 89.01% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 4.69 |
F-ScoreN/A
WACC4.86%
ROIC/WACC3.37
Cap/Depr(3y)99.23%
Cap/Depr(5y)93.07%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.61%
Profit Quality(3y)70.85%
Profit Quality(5y)57.43%
High Growth Momentum
Growth
EPS 1Y (TTM)10.09%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%6.42%
EPS Next Y20.93%
EPS Next 2Y14.8%
EPS Next 3Y12.65%
EPS Next 5Y10.26%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%8.02%
Revenue Next Year6.33%
Revenue Next 2Y6.01%
Revenue Next 3Y5.79%
Revenue Next 5Y4.62%
EBIT growth 1Y12.71%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year26.41%
EBIT Next 3Y12.56%
EBIT Next 5Y10.85%
FCF growth 1Y114.57%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y85.59%
OCF growth 3Y11.97%
OCF growth 5Y14.99%