ABB LTD-REG (ABJ.DE) Stock Fundamental Analysis
FRA:ABJ - Deutsche Boerse Ag - CH0012221716 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to ABJ. ABJ was compared to 959 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.
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
ABJ's Return On Assets of 9.73% is amongst the best of the industry. ABJ outperforms 96.30% of its industry peers.
The Return On Equity of ABJ (30.57%) is better than 98.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.63%, ABJ belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABJ is above the industry average of 11.64%.
The 3 year average ROIC (14.75%) for ABJ is below the current ROIC(16.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 30.57% | ||
| ROIC | 16.63% |
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
With an excellent Profit Margin value of 12.55%, ABJ belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Profit Margin of ABJ has grown nicely.
ABJ has a better Operating Margin (16.70%) than 92.59% of its industry peers.
In the last couple of years the Operating Margin of ABJ has grown nicely.
ABJ has a Gross Margin (38.55%) which 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 | 16.7% | ||
| PM (TTM) | 12.55% | ||
| GM | 38.55% |
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
ABJ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ABJ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ABJ has less shares outstanding
ABJ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.20 indicates that ABJ is not in any danger for bankruptcy at the moment.
ABJ's Altman-Z score of 4.20 is amongst the best of the industry. ABJ outperforms 96.30% of its industry peers.
ABJ has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as ABJ would need 2.07 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.07, ABJ belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
ABJ has a Debt/Equity ratio of 0.56. This is a neutral value indicating ABJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, ABJ is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
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 | 0.56 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 4.2 |
ROIC/WACC2.85
WACC5.84%
2.3 Liquidity
ABJ has a Current Ratio of 1.28. This is a normal value and indicates that ABJ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ABJ (1.28) is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that ABJ may have some problems paying its short term obligations.
ABJ has a Quick ratio (0.93) which is comparable to the rest of the industry.
The current and quick ratio evaluation for ABJ is rather negative, while it does have 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 | 1.28 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.46% over the past year.
Measured over the past years, ABJ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.16% on average per year.
Looking at the last year, ABJ shows a small growth in Revenue. The Revenue has grown by 2.07% in the last year.
The Revenue has been growing slightly by 3.26% on average over the past years.
EPS 1Y (TTM)14.46%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%22.45%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%0.83%
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 11.88% on average per year.
Based on estimates for the next years, ABJ will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y11.88%
Revenue Next Year4.75%
Revenue Next 2Y4.83%
Revenue Next 3Y4.91%
Revenue Next 5Y3.4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.87, ABJ can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ABJ is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.52, ABJ is valued at the same level.
The Price/Forward Earnings ratio is 21.26, 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 22.25. ABJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 21.26 |
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.
66.67% of the companies in the same industry are more expensive than ABJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.39 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.58
PEG (5Y)2.32
EPS Next 2Y13.02%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, ABJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.85, ABJ pays a better dividend. On top of this ABJ pays more dividend than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ABJ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 20.57% of its income as dividend. This is a sustainable payout ratio.
ABJ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.57%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
FRA:ABJ (6/6/2025, 7:00:00 PM)
50.44
+0.32 (+0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners41.64%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap93.81B
Analysts66.11
Price Target52.86 (4.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend0.85
Dividend Growth(5Y)4.13%
DP20.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.89%
Min EPS beat(2)-0.67%
Max EPS beat(2)8.44%
EPS beat(4)2
Avg EPS beat(4)-3.31%
Min EPS beat(4)-21.59%
Max EPS beat(4)8.44%
EPS beat(8)3
Avg EPS beat(8)-3.45%
EPS beat(12)7
Avg EPS beat(12)9.49%
EPS beat(16)10
Avg EPS beat(16)5.24%
Revenue beat(2)1
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)0.51%
Revenue beat(4)1
Avg Revenue beat(4)-3.01%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)0.51%
Revenue beat(8)2
Avg Revenue beat(8)-2.77%
Revenue beat(12)4
Avg Revenue beat(12)-2.35%
Revenue beat(16)6
Avg Revenue beat(16)-2.29%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 21.26 | ||
| P/S | 3.26 | ||
| P/FCF | 28.39 | ||
| P/OCF | 23.13 | ||
| P/B | 7.93 | ||
| P/tB | 86.14 | ||
| EV/EBITDA | 16.71 |
EPS(TTM)1.95
EY3.87%
EPS(NY)2.37
Fwd EY4.7%
FCF(TTM)1.78
FCFY3.52%
OCF(TTM)2.18
OCFY4.32%
SpS15.49
BVpS6.36
TBVpS0.59
PEG (NY)1.58
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 30.57% | ||
| ROCE | 21.8% | ||
| ROIC | 16.63% | ||
| ROICexc | 22.24% | ||
| ROICexgc | 61.07% | ||
| OM | 16.7% | ||
| PM (TTM) | 12.55% | ||
| GM | 38.55% | ||
| FCFM | 11.47% |
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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 107.78% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 20.75 | ||
| Cash Conversion | 73.6% | ||
| Profit Quality | 91.34% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.2 |
F-Score7
WACC5.84%
ROIC/WACC2.85
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)14.46%
EPS 3Y13.8%
EPS 5Y11.16%
EPS Q2Q%22.45%
EPS Next Y16.37%
EPS Next 2Y13.02%
EPS Next 3Y11.57%
EPS Next 5Y11.88%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y4.31%
Revenue growth 5Y3.26%
Sales Q2Q%0.83%
Revenue Next Year4.75%
Revenue Next 2Y4.83%
Revenue Next 3Y4.91%
Revenue Next 5Y3.4%
EBIT growth 1Y9.46%
EBIT growth 3Y12.89%
EBIT growth 5Y21.47%
EBIT Next Year26.41%
EBIT Next 3Y12.56%
EBIT Next 5Y12.52%
FCF growth 1Y169%
FCF growth 3Y15.13%
FCF growth 5Y19.63%
OCF growth 1Y117.61%
OCF growth 3Y11.97%
OCF growth 5Y14.99%