ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ABJ - CH0012221716 - Common Stock
63.64 EUR
+0.48 (+0.76%)
We assign a fundamental rating of 7 out of 10 to ABJ. ABJ was compared to 69 industry peers in the Electrical Equipment industry. ABJ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABJ has a decent growth rate and is not valued too expensively. These ratings would make ABJ suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ABJ was profitable.
In the past year ABJ had a positive cash flow from operations.
Each year in the past 5 years ABJ has been profitable.
ABJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABJ has a better Return On Assets (10.19%) than 92.75% of its industry peers.
With an excellent Return On Equity value of 29.70%, ABJ belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
The Return On Invested Capital of ABJ (17.17%) is better than 94.20% of its industry peers.
ABJ had an Average Return On Invested Capital over the past 3 years of 14.75%. This is above the industry average of 10.10%.
The last Return On Invested Capital (17.17%) for ABJ is above the 3 year average (14.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 29.7% | ||
| ROIC | 17.17% |
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
The Profit Margin of ABJ (12.89%) is better than 89.86% of its industry peers.
In the last couple of years the Profit Margin of ABJ has grown nicely.
ABJ has a Operating Margin of 17.63%. This is amongst the best in the industry. ABJ outperforms 85.51% of its industry peers.
ABJ's Operating Margin has improved in the last couple of years.
ABJ has a Gross Margin (39.63%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ABJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.63% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABJ is creating value.
The number of shares outstanding for ABJ remains at a similar level compared to 1 year ago.
The number of shares outstanding for ABJ has been reduced compared to 5 years ago.
Compared to 1 year ago, ABJ has an improved debt to assets ratio.
2.2 Solvency
ABJ has an Altman-Z score of 5.03. This indicates that ABJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.03, ABJ belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
The Debt to FCF ratio of ABJ is 2.08, which is a good value as it means it would take ABJ, 2.08 years of fcf income to pay off all of its debts.
ABJ's Debt to FCF ratio of 2.08 is amongst the best of the industry. ABJ outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ABJ is somewhat dependend on debt financing.
ABJ has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
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 | 0.53 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 5.03 |
ROIC/WACC3.13
WACC5.49%
2.3 Liquidity
ABJ has a Current Ratio of 1.40. This is a normal value and indicates that ABJ is financially healthy and should not expect problems in meeting its short term obligations.
ABJ has a Current ratio of 1.40. This is comparable to the rest of the industry: ABJ outperforms 52.17% of its industry peers.
A Quick Ratio of 1.00 indicates that ABJ may have some problems paying its short term obligations.
ABJ's Quick ratio of 1.00 is fine compared to the rest of the industry. ABJ outperforms 60.87% 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 | 1.4 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
ABJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.68%, 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.
ABJ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.16%.
ABJ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)15.68%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%29.41%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
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 10.52% on average per year.
The Revenue is expected to grow by 6.10% on average over the next years.
EPS Next Y22.8%
EPS Next 2Y19.5%
EPS Next 3Y14.11%
EPS Next 5Y10.52%
Revenue Next Year6.08%
Revenue Next 2Y5.57%
Revenue Next 3Y5.67%
Revenue Next 5Y6.1%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.04, which means the current valuation is very expensive for ABJ.
Based on the Price/Earnings ratio, ABJ is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABJ to the average of the S&P500 Index (26.57), we can say ABJ is valued inline with the index average.
The Price/Forward Earnings ratio is 24.76, which indicates a rather expensive current valuation of ABJ.
ABJ's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.04. ABJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABJ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABJ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.98 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
ABJ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ABJ may justify a higher PE ratio.
ABJ's earnings are expected to grow with 14.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)2.78
EPS Next 2Y19.5%
EPS Next 3Y14.11%
5. Dividend
5.1 Amount
ABJ has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
ABJ's Dividend Yield is a higher than the industry average which is at 0.90.
Compared to an average S&P500 Dividend Yield of 1.88, ABJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
42.87% of the earnings are spent on dividend by ABJ. 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.
DP42.87%
EPS Next 2Y19.5%
EPS Next 3Y14.11%
FRA:ABJ (12/23/2025, 7:00:00 PM)
63.64
+0.48 (+0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.98%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap118.36B
Revenue(TTM)34.51B
Net Income(TTM)4.45B
Analysts68
Price Target61.86 (-2.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.82
Dividend Growth(5Y)4.13%
DP42.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.32%
Min EPS beat(2)-1.11%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)2.1%
Min EPS beat(4)-1.11%
Max EPS beat(4)8.44%
EPS beat(8)4
Avg EPS beat(8)-1.53%
EPS beat(12)6
Avg EPS beat(12)6.35%
EPS beat(16)9
Avg EPS beat(16)4.53%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.31%
Revenue beat(4)2
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)-2.14%
Revenue beat(12)5
Avg Revenue beat(12)-1.7%
Revenue beat(16)6
Avg Revenue beat(16)-1.99%
PT rev (1m)2.59%
PT rev (3m)10.04%
EPS NQ rev (1m)2.26%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 24.76 | ||
| P/S | 4.04 | ||
| P/FCF | 33.98 | ||
| P/OCF | 27.7 | ||
| P/B | 9.32 | ||
| P/tB | 56.73 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)2.05
EY3.22%
EPS(NY)2.57
Fwd EY4.04%
FCF(TTM)1.87
FCFY2.94%
OCF(TTM)2.3
OCFY3.61%
SpS15.74
BVpS6.83
TBVpS1.12
PEG (NY)1.36
PEG (5Y)2.78
Graham Number17.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.19% | ||
| ROE | 29.7% | ||
| ROCE | 22.03% | ||
| ROIC | 17.17% | ||
| ROICexc | 21.92% | ||
| ROICexgc | 51.92% | ||
| OM | 17.63% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.63% | ||
| FCFM | 11.9% |
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%
ROICexgc growth 3Y10.23%
ROICexgc 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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 112.3% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 22.7 | ||
| Cash Conversion | 72.85% | ||
| Profit Quality | 92.29% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.03 |
F-Score7
WACC5.49%
ROIC/WACC3.13
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)15.68%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%29.41%
EPS Next Y22.8%
EPS Next 2Y19.5%
EPS Next 3Y14.11%
EPS Next 5Y10.52%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.08%
Revenue Next 2Y5.57%
Revenue Next 3Y5.67%
Revenue Next 5Y6.1%
EBIT growth 1Y18.87%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.43%
EBIT Next 3Y15.32%
EBIT Next 5Y11.65%
FCF growth 1Y77.32%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y63.51%
OCF growth 3Y11.97%
OCF growth 5Y14.99%
ABB LTD-REG / ABJ.DE FAQ
Can you provide the ChartMill fundamental rating for ABB LTD-REG?
ChartMill assigns a fundamental rating of 7 / 10 to ABJ.DE.
Can you provide the valuation status for ABB LTD-REG?
ChartMill assigns a valuation rating of 4 / 10 to ABB LTD-REG (ABJ.DE). This can be considered as Fairly Valued.
What is the profitability of ABJ stock?
ABB LTD-REG (ABJ.DE) has a profitability rating of 9 / 10.
What is the financial health of ABB LTD-REG (ABJ.DE) stock?
The financial health rating of ABB LTD-REG (ABJ.DE) is 8 / 10.
Can you provide the expected EPS growth for ABJ stock?
The Earnings per Share (EPS) of ABB LTD-REG (ABJ.DE) is expected to grow by 22.8% in the next year.