ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
Europe - FRA:ABJ - CH0012221716 - Common Stock
58.8 EUR
+0.42 (+0.72%)
We assign a fundamental rating of 7 out of 10 to ABJ. ABJ was compared to 61 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 correct valuation and a medium growth rate. This makes ABJ very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ABJ had positive earnings in the past year.
In the past year ABJ had a positive cash flow from operations.
Each year in the past 5 years ABJ has been profitable.
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 10.19%, ABJ belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
The Return On Equity of ABJ (29.70%) is better than 96.72% of its industry peers.
ABJ has a better Return On Invested Capital (17.17%) than 93.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABJ is above the industry average of 10.39%.
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 91.80% of its industry peers.
ABJ's Profit Margin has improved in the last couple of years.
The Operating Margin of ABJ (17.63%) is better than 91.80% of its industry peers.
In the last couple of years the Operating Margin of ABJ has grown nicely.
ABJ has a Gross Margin of 39.63%. This is in the better half of the industry: ABJ outperforms 62.30% of its industry peers.
ABJ's Gross Margin has improved in the last couple of years.
| 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
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.
ABJ has less shares outstanding than it did 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 4.76. This indicates that ABJ is financially healthy and has little risk of bankruptcy at the moment.
ABJ's Altman-Z score of 4.76 is amongst the best of the industry. ABJ outperforms 86.89% of its industry peers.
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 has a better Debt to FCF ratio (2.08) than 83.61% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ABJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, ABJ perfoms like the industry average, outperforming 50.82% of the companies in the same 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 | 4.76 |
ROIC/WACC3.52
WACC4.88%
2.3 Liquidity
A Current Ratio of 1.40 indicates that ABJ should not have too much problems paying its short term obligations.
ABJ's Current ratio of 1.40 is in line compared to the rest of the industry. ABJ outperforms 47.54% of its industry peers.
ABJ has a Quick Ratio of 1.40. 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 1.00, ABJ is in the better half of the industry, outperforming 60.66% 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 | 1.4 | ||
| 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.
The Earnings Per Share has been growing by 11.16% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.16% in the past year.
The Revenue has been growing slightly by 3.26% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
Based on estimates for the next years, ABJ will show a small growth in Revenue. The Revenue will grow by 6.39% on average per year.
EPS Next Y23.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
EPS Next 5Y10.52%
Revenue Next Year6.9%
Revenue Next 2Y5.87%
Revenue Next 3Y5.86%
Revenue Next 5Y6.39%
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.
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 28.13, 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 70.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.47, ABJ is valued at the same level.
The Price/Forward Earnings ratio is 22.56, which indicates a rather expensive current valuation of ABJ.
ABJ's Price/Forward Earnings ratio is in line with the industry average.
ABJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 22.56 |
4.2 Price Multiples
ABJ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ABJ is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.86 | ||
| EV/EBITDA | 18.38 |
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.
ABJ's earnings are expected to grow with 14.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)2.52
EPS Next 2Y19.27%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, 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 1.99. ABJ pays more dividend than 83.61% of the companies in the same industry.
ABJ's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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 42.87% 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.
DP42.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
FRA:ABJ (11/19/2025, 7:00:00 PM)
58.8
+0.42 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap109.35B
Revenue(TTM)34.51B
Net Income(TTM)4.45B
Analysts68
Price Target60.3 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.83
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)7.4%
PT rev (3m)8.56%
EPS NQ rev (1m)-5.19%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)1.74%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 22.56 | ||
| P/S | 3.67 | ||
| P/FCF | 30.86 | ||
| P/OCF | 25.15 | ||
| P/B | 8.46 | ||
| P/tB | 51.51 | ||
| EV/EBITDA | 18.38 |
EPS(TTM)2.09
EY3.55%
EPS(NY)2.61
Fwd EY4.43%
FCF(TTM)1.91
FCFY3.24%
OCF(TTM)2.34
OCFY3.98%
SpS16.02
BVpS6.95
TBVpS1.14
PEG (NY)1.18
PEG (5Y)2.52
Graham Number18.08
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 | 4.76 |
F-Score7
WACC4.88%
ROIC/WACC3.52
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 Y23.87%
EPS Next 2Y19.27%
EPS Next 3Y14.28%
EPS Next 5Y10.52%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.9%
Revenue Next 2Y5.87%
Revenue Next 3Y5.86%
Revenue Next 5Y6.39%
EBIT growth 1Y18.87%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.53%
EBIT Next 3Y14.47%
EBIT Next 5Y11.04%
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 5 / 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 23.87% in the next year.