ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ABJ - CH0012221716 - Common Stock
64.68 EUR
-0.22 (-0.34%)
We assign a fundamental rating of 7 out of 10 to ABJ. ABJ was compared to 73 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 could make ABJ a good candidate 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.
- 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
- The Return On Assets of ABJ (10.19%) is better than 94.52% of its industry peers.
- ABJ's Return On Equity of 29.70% is amongst the best of the industry. ABJ outperforms 95.89% of its industry peers.
- With an excellent Return On Invested Capital value of 17.17%, ABJ belongs to the best of the industry, outperforming 95.89% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ABJ is significantly above the industry average of 9.58%.
- The 3 year average ROIC (14.75%) for ABJ is below the current ROIC(17.17%), indicating increased profibility in the last year.
| 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
- ABJ has a better Profit Margin (12.89%) than 93.15% of its industry peers.
- In the last couple of years the Profit Margin of ABJ has grown nicely.
- ABJ has a better Operating Margin (17.63%) than 89.04% of its industry peers.
- ABJ's Operating Margin has improved in the last couple of years.
- ABJ has a Gross Margin of 39.63%. This is in the better half of the industry: ABJ outperforms 64.38% of its industry peers.
- 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
- 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
- An Altman-Z score of 5.06 indicates that ABJ is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ABJ (5.06) is better than 83.56% 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.
- With an excellent Debt to FCF ratio value of 2.08, ABJ belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
- ABJ has a Debt/Equity ratio of 0.53. This is a neutral value indicating 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 | 5.06 |
ROIC/WACC3.19
WACC5.38%
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 52.05% of its industry peers.
- A Quick Ratio of 1.00 indicates that ABJ may have some problems paying its short term obligations.
- With a decent Quick ratio value of 1.00, ABJ is doing good in the industry, outperforming 63.01% 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
- The Earnings Per Share has grown by an nice 15.68% over the past year.
- 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%.
- 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)6.16%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%11.43%
3.2 Future
- ABJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.52% yearly.
- Based on estimates for the next years, ABJ will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y21.21%
EPS Next 2Y22.38%
EPS Next 3Y14.29%
EPS Next 5Y10.52%
Revenue Next Year6.08%
Revenue Next 2Y5.57%
Revenue Next 3Y5.67%
Revenue Next 5Y6.1%
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
- A Price/Earnings ratio of 31.40 indicates a quite expensive valuation of ABJ.
- Based on the Price/Earnings ratio, ABJ is valued a bit cheaper than the industry average as 65.75% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.32. ABJ is around the same levels.
- A Price/Forward Earnings ratio of 23.87 indicates a rather expensive valuation of ABJ.
- ABJ's Price/Forward Earnings is on the same level as the industry average.
- ABJ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 23.87 |
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.
- ABJ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABJ is cheaper than 60.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.37 | ||
| EV/EBITDA | 20.47 |
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.
- A more expensive valuation may be justified as ABJ's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)1.48
PEG (5Y)2.81
EPS Next 2Y22.38%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
- ABJ has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
- ABJ's Dividend Yield is rather good when compared to the industry average which is at 0.82. ABJ pays more dividend than 80.82% of the companies in the same industry.
- ABJ's Dividend Yield is slightly below the S&P500 average, which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 2Y22.38%
EPS Next 3Y14.29%
FRA:ABJ (1/20/2026, 7:00:00 PM)
64.68
-0.22 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)10-16 2025-10-16/bmo
Earnings (Next)01-28 2026-01-28/amc
Inst Owners42.1%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap120.29B
Revenue(TTM)34.51B
Net Income(TTM)4.45B
Analysts67.57
Price Target61.86 (-4.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)0%
PT rev (3m)10.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 23.87 | ||
| P/S | 4.09 | ||
| P/FCF | 34.37 | ||
| P/OCF | 28.01 | ||
| P/B | 9.42 | ||
| P/tB | 57.37 | ||
| EV/EBITDA | 20.47 |
EPS(TTM)2.06
EY3.18%
EPS(NY)2.71
Fwd EY4.19%
FCF(TTM)1.88
FCFY2.91%
OCF(TTM)2.31
OCFY3.57%
SpS15.82
BVpS6.87
TBVpS1.13
PEG (NY)1.48
PEG (5Y)2.81
Graham Number17.84
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 | 5.06 |
F-Score7
WACC5.38%
ROIC/WACC3.19
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 Y21.21%
EPS Next 2Y22.38%
EPS Next 3Y14.29%
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 Year30.01%
EBIT Next 3Y15.43%
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.
What is the valuation status of ABB LTD-REG (ABJ.DE) stock?
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 earnings growth outlook for ABB LTD-REG?
The Earnings per Share (EPS) of ABB LTD-REG (ABJ.DE) is expected to grow by 21.21% in the next year.
Can you provide the dividend sustainability for ABJ stock?
The dividend rating of ABB LTD-REG (ABJ.DE) is 5 / 10 and the dividend payout ratio is 42.87%.