ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
FRA:ABJ - Deutsche Boerse Ag - CH0012221716 - Common Stock - Currency: EUR
Overall ABJ gets a fundamental rating of 6 out of 10. We evaluated ABJ against 55 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making ABJ a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, ABJ is valued expensive at the moment. This makes ABJ very considerable 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
Looking at the Return On Assets, with a value of 9.78%, ABJ belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
The Return On Equity of ABJ (29.75%) is better than 98.18% of its industry peers.
The Return On Invested Capital of ABJ (16.36%) is better than 94.55% 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 8.16%.
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
The Profit Margin of ABJ (12.47%) is better than 94.55% of its industry peers.
ABJ's Profit Margin has improved in the last couple of years.
The Operating Margin of ABJ (17.09%) is better than 90.91% of its industry peers.
In the last couple of years the Operating Margin of ABJ has grown nicely.
The Gross Margin of ABJ (38.99%) is comparable to the rest of the industry.
ABJ's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, ABJ has less shares outstanding
The debt/assets ratio for ABJ has been reduced compared to a year ago.
2.2 Solvency
ABJ has an Altman-Z score of 4.64. This indicates that ABJ is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.64, ABJ belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.36, ABJ is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ABJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, ABJ is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
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 | 4.64 |
ROIC/WACC3.34
WACC4.89%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ABJ should not have too much problems paying its short term obligations.
The Current ratio of ABJ (1.37) is comparable to the rest of the industry.
ABJ has a Quick Ratio of 1.37. This is a bad value and indicates that ABJ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.97, ABJ is in line with its industry, outperforming 54.55% of the companies in the same industry.
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.
The Revenue has been growing slightly by 3.88% in the past 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.
Based on estimates for the next years, ABJ will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y10.26%
Revenue Next Year6.07%
Revenue Next 2Y5.87%
Revenue Next 3Y5.69%
Revenue Next 5Y4.41%
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
With a Price/Earnings ratio of 29.41, ABJ can be considered very expensive at the moment.
ABJ's Price/Earnings is on the same level as the industry average.
ABJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.73.
The Price/Forward Earnings ratio is 24.58, which indicates a rather expensive current valuation of ABJ.
ABJ's Price/Forward Earnings ratio is in line with the industry average.
ABJ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
ABJ's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 33.25 | ||
| EV/EBITDA | 19.11 |
4.3 Compensation for Growth
ABJ's 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.
PEG (NY)1.8
PEG (5Y)2.63
EPS Next 2Y13.02%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
ABJ has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 2.42, ABJ pays a bit more dividend than its industry peers.
ABJ's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
45.55% 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.
DP45.55%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
FRA:ABJ (8/12/2025, 7:00:00 PM)
57.34
+0.04 (+0.07%)
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 Cap106.64B
Analysts70.29
Price Target55.54 (-3.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend0.83
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)6.78%
PT rev (3m)N/A
EPS NQ rev (1m)3.12%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 24.58 | ||
| P/S | 3.69 | ||
| P/FCF | 33.25 | ||
| P/OCF | 26.8 | ||
| P/B | 8.81 | ||
| P/tB | 80.95 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)1.95
EY3.4%
EPS(NY)2.33
Fwd EY4.07%
FCF(TTM)1.72
FCFY3.01%
OCF(TTM)2.14
OCFY3.73%
SpS15.53
BVpS6.51
TBVpS0.71
PEG (NY)1.8
PEG (5Y)2.63
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 | 4.64 |
F-ScoreN/A
WACC4.89%
ROIC/WACC3.34
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 Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y10.26%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%8.02%
Revenue Next Year6.07%
Revenue Next 2Y5.87%
Revenue Next 3Y5.69%
Revenue Next 5Y4.41%
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%