ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
Europe - FRA:ABJ - CH0012221716 - Common Stock
63.34 EUR
+0.88 (+1.41%)
ABJ gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, ABJ could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ABJ was profitable.
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
ABJ has a Return On Assets of 9.78%. This is amongst the best in the industry. ABJ outperforms 95.08% of its industry peers.
ABJ has a Return On Equity of 29.75%. This is amongst the best in the industry. ABJ outperforms 96.72% of its industry peers.
ABJ's Return On Invested Capital of 16.36% is amongst the best of the industry. ABJ outperforms 95.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABJ is significantly above the industry average of 9.35%.
The last Return On Invested Capital (16.36%) for ABJ is above the 3 year average (14.75%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 12.47%. This is amongst the best in the industry. ABJ outperforms 95.08% of its industry peers.
ABJ's Profit Margin has improved in the last couple of years.
ABJ's Operating Margin of 17.09% is amongst the best of the industry. ABJ outperforms 90.16% of its industry peers.
In the last couple of years the Operating Margin of ABJ has grown nicely.
ABJ has a Gross Margin of 38.99%. This is in the better half of the industry: ABJ outperforms 62.30% of 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.
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.
The debt/assets ratio for ABJ has been reduced compared to a year ago.
2.2 Solvency
ABJ has an Altman-Z score of 4.90. This indicates that ABJ is financially healthy and has little risk of bankruptcy at the moment.
ABJ's Altman-Z score of 4.90 is amongst the best of the industry. ABJ outperforms 90.16% of its industry peers.
ABJ has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ABJ would need 2.36 years to pay back of all of its debts.
ABJ has a better Debt to FCF ratio (2.36) than 81.97% of its industry peers.
ABJ has a Debt/Equity ratio of 0.61. This is a neutral value indicating ABJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, ABJ perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
Although ABJ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.9 |
ROIC/WACC3.39
WACC4.82%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ABJ should not have too much problems paying its short term obligations.
ABJ has a Current ratio (1.37) which is in line with its industry peers.
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.
ABJ's Quick ratio of 0.97 is fine compared to the rest of the industry. ABJ outperforms 60.66% 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 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.
ABJ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.91%.
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)15.68%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%29.41%
Revenue 1Y (TTM)1.91%
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 10.26% on average per year.
Based on estimates for the next years, ABJ will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y21.75%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
EPS Next 5Y10.26%
Revenue Next Year6.78%
Revenue Next 2Y6.36%
Revenue Next 3Y6.1%
Revenue Next 5Y5.61%
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 30.31, 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 73.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.83. ABJ is around the same levels.
ABJ is valuated quite expensively with a Price/Forward Earnings ratio of 26.07.
The rest of the industry has a similar Price/Forward Earnings ratio as ABJ.
ABJ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.31 | ||
| Fwd PE | 26.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABJ is valued a bit cheaper than 60.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABJ is valued a bit cheaper than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.64 | ||
| EV/EBITDA | 21.05 |
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.
A more expensive valuation may be justified as ABJ's earnings are expected to grow with 12.99% in the coming years.
PEG (NY)1.39
PEG (5Y)2.71
EPS Next 2Y15.22%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
ABJ has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.00, ABJ pays a better dividend. On top of this ABJ pays more dividend than 85.25% of the companies listed in the same industry.
ABJ's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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.
ABJ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.55%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
FRA:ABJ (10/23/2025, 7:00:00 PM)
63.34
+0.88 (+1.41%)
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 Cap117.80B
Revenue(TTM)32.85B
Net Income(TTM)4.19B
Analysts68.33
Price Target56.14 (-11.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-0.13%
PT rev (3m)7.93%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)3.41%
EPS NY rev (1m)0.67%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)1.39%
Revenue NQ rev (3m)5.3%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.31 | ||
| Fwd PE | 26.07 | ||
| P/S | 4.07 | ||
| P/FCF | 36.64 | ||
| P/OCF | 29.53 | ||
| P/B | 9.7 | ||
| P/tB | 89.2 | ||
| EV/EBITDA | 21.05 |
EPS(TTM)2.09
EY3.3%
EPS(NY)2.43
Fwd EY3.84%
FCF(TTM)1.73
FCFY2.73%
OCF(TTM)2.15
OCFY3.39%
SpS15.57
BVpS6.53
TBVpS0.71
PEG (NY)1.39
PEG (5Y)2.71
Graham Number17.52
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%
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-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 | 4.9 |
F-ScoreN/A
WACC4.82%
ROIC/WACC3.39
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 Y21.75%
EPS Next 2Y15.22%
EPS Next 3Y12.99%
EPS Next 5Y10.26%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
Revenue Next Year6.78%
Revenue Next 2Y6.36%
Revenue Next 3Y6.1%
Revenue Next 5Y5.61%
EBIT growth 1Y12.71%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year30.53%
EBIT Next 3Y14.47%
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%
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 21.75% in the next year.