ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - NYSE:ABT - US0028241000 - Common Stock
127.18 USD
+0.33 (+0.26%)
127.18 USD
0 (0%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. ABT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ABT has a correct valuation and a medium growth rate. Finally ABT also has an excellent dividend rating. These ratings could make ABT a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ABT was profitable.
ABT had a positive operating cash flow in the past year.
ABT had positive earnings in each of the past 5 years.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.64%, ABT belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
ABT's Return On Equity of 27.65% is amongst the best of the industry. ABT outperforms 97.35% of its industry peers.
With an excellent Return On Invested Capital value of 9.43%, ABT belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is in line with the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROIC | 9.43% |
ROA(3y)11.2%
ROA(5y)9.84%
ROE(3y)20.61%
ROE(5y)19.06%
ROIC(3y)10.45%
ROIC(5y)10.18%
1.3 Margins
The Profit Margin of ABT (32.43%) is better than 96.83% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
ABT has a Operating Margin of 17.97%. This is amongst the best in the industry. ABT outperforms 88.36% of its industry peers.
ABT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 56.33%, ABT is in line with its industry, outperforming 53.97% of the companies in the same industry.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.97% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.33% |
OM growth 3Y-5.79%
OM growth 5Y2.63%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.89%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still creating some value.
Compared to 1 year ago, ABT has about the same amount of shares outstanding.
ABT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.74 indicates that ABT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.74, ABT belongs to the top of the industry, outperforming 83.07% of the companies in the same industry.
The Debt to FCF ratio of ABT is 1.98, which is an excellent value as it means it would take ABT, only 1.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, ABT belongs to the top of the industry, outperforming 89.42% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that ABT is not too dependend on debt financing.
ABT has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.13
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.82 indicates that ABT should not have too much problems paying its short term obligations.
ABT has a worse Current ratio (1.82) than 67.72% of its industry peers.
ABT has a Quick Ratio of 1.30. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
ABT's Quick ratio of 1.30 is on the low side compared to the rest of the industry. ABT is outperformed by 65.08% of its industry peers.
ABT 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 | 1.82 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.40% over the past year.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
The Revenue has been growing slightly by 6.37% in the past year.
ABT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
EPS 1Y (TTM)10.4%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%7.44%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
3.2 Future
ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.87% yearly.
Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 7.13% on average per year.
EPS Next Y11.44%
EPS Next 2Y10.84%
EPS Next 3Y10.85%
EPS Next 5Y9.87%
Revenue Next Year6.43%
Revenue Next 2Y7.1%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 25.49, the valuation of ABT can be described as expensive.
76.72% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.89, ABT is valued at the same level.
ABT is valuated rather expensively with a Price/Forward Earnings ratio of 22.17.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than 77.78% of the companies in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 22.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 75.13% of the companies listed in the same industry.
79.89% of the companies in the same industry are more expensive than ABT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.67 | ||
| EV/EBITDA | 20.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABT does not grow enough to justify the current Price/Earnings ratio.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)3.36
EPS Next 2Y10.84%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, ABT has a reasonable but not impressive dividend return.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.79. ABT pays more dividend than 95.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
ABT has paid a dividend for at least 10 years, which is a reliable track record.
ABT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
28.42% of the earnings are spent on dividend by ABT. This is a low number and sustainable payout ratio.
The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.42%
EPS Next 2Y10.84%
EPS Next 3Y10.85%
127.18
+0.33 (+0.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change-0.21%
Ins Owners0.45%
Ins Owner Change-0.03%
Market Cap221.35B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.86
Price Target144.58 (13.68%)
Short Float %1.12%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.42%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.08%
Min EPS beat(2)-0.58%
Max EPS beat(2)0.73%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-1.16%
Max EPS beat(4)0.73%
EPS beat(8)4
Avg EPS beat(8)0.55%
EPS beat(12)8
Avg EPS beat(12)3.44%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-0.29%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)2.75%
PT rev (1m)0.16%
PT rev (3m)-1.2%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 22.17 | ||
| P/S | 5.13 | ||
| P/FCF | 32.67 | ||
| P/OCF | 24.49 | ||
| P/B | 4.38 | ||
| P/tB | 10.7 | ||
| EV/EBITDA | 20.81 |
EPS(TTM)4.99
EY3.92%
EPS(NY)5.74
Fwd EY4.51%
FCF(TTM)3.89
FCFY3.06%
OCF(TTM)5.19
OCFY4.08%
SpS24.77
BVpS29.05
TBVpS11.89
PEG (NY)2.23
PEG (5Y)3.36
Graham Number57.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROCE | 10.98% | ||
| ROIC | 9.43% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 19.91% | ||
| OM | 17.97% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.33% | ||
| FCFM | 15.72% |
ROA(3y)11.2%
ROA(5y)9.84%
ROE(3y)20.61%
ROE(5y)19.06%
ROIC(3y)10.45%
ROIC(5y)10.18%
ROICexc(3y)12.18%
ROICexc(5y)11.89%
ROICexgc(3y)32.65%
ROICexgc(5y)35.03%
ROCE(3y)12.16%
ROCE(5y)11.86%
ROICexgc growth 3Y-24.08%
ROICexgc growth 5Y-8.19%
ROICexc growth 3Y-10.71%
ROICexc growth 5Y6.04%
OM growth 3Y-5.79%
OM growth 5Y2.63%
PM growth 3Y24.85%
PM growth 5Y22.55%
GM growth 3Y-0.89%
GM growth 5Y-1.07%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 72.02% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.01% | ||
| Profit Quality | 48.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.74 |
F-Score7
WACC8.35%
ROIC/WACC1.13
Cap/Depr(3y)63.63%
Cap/Depr(5y)61.92%
Cap/Sales(3y)4.94%
Cap/Sales(5y)5.1%
Profit Quality(3y)82.78%
Profit Quality(5y)99.6%
High Growth Momentum
Growth
EPS 1Y (TTM)10.4%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%7.44%
EPS Next Y11.44%
EPS Next 2Y10.84%
EPS Next 3Y10.85%
EPS Next 5Y9.87%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.43%
Revenue Next 2Y7.1%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
EBIT growth 1Y14.57%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.77%
EBIT Next 3Y15.64%
EBIT Next 5Y12.28%
FCF growth 1Y23.45%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y21.27%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%
ABBOTT LABORATORIES / ABT FAQ
What is the fundamental rating for ABT stock?
ChartMill assigns a fundamental rating of 7 / 10 to ABT.
Can you provide the valuation status for ABBOTT LABORATORIES?
ChartMill assigns a valuation rating of 4 / 10 to ABBOTT LABORATORIES (ABT). This can be considered as Fairly Valued.
What is the profitability of ABT stock?
ABBOTT LABORATORIES (ABT) has a profitability rating of 8 / 10.
How financially healthy is ABBOTT LABORATORIES?
The financial health rating of ABBOTT LABORATORIES (ABT) is 8 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 7 / 10 and the dividend payout ratio is 28.42%.