ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
128.9 USD
+0.36 (+0.28%)
128.6 USD
-0.3 (-0.23%)
Overall ABT gets a fundamental rating of 6 out of 10. We evaluated ABT against 188 industry peers in the Health Care Equipment & Supplies industry. ABT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABT is not valued too expensively and it also shows a decent growth rate. This makes ABT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ABT was profitable.
In the past year ABT had a positive cash flow from operations.
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 16.60%, ABT belongs to the top of the industry, outperforming 96.81% of the companies in the same industry.
ABT has a Return On Equity of 27.43%. This is amongst the best in the industry. ABT outperforms 97.87% of its industry peers.
ABT has a better Return On Invested Capital (9.90%) than 89.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABT is in line with the industry average of 8.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROIC | 9.9% |
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
With an excellent Profit Margin value of 31.88%, ABT belongs to the best of the industry, outperforming 96.81% of the companies in the same industry.
In the last couple of years the Profit Margin of ABT has grown nicely.
ABT has a Operating Margin of 18.29%. This is amongst the best in the industry. ABT outperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
With a Gross Margin value of 56.19%, ABT perfoms like the industry average, outperforming 53.72% of the companies in the same industry.
In the last couple of years the Gross Margin of ABT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.29% | ||
| PM (TTM) | 31.88% | ||
| GM | 56.19% |
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
ABT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ABT has about the same amount of shares outstanding.
Compared to 5 years ago, ABT has less shares outstanding
The debt/assets ratio for ABT has been reduced compared to a year ago.
2.2 Solvency
ABT has an Altman-Z score of 5.85. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a better Altman-Z score (5.85) than 78.72% of its industry peers.
ABT has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
ABT has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. ABT outperforms 88.30% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that ABT is not too dependend on debt financing.
The Debt to Equity ratio of ABT (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.19
WACC8.35%
2.3 Liquidity
ABT has a Current Ratio of 1.70. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
ABT has a worse Current ratio (1.70) than 70.21% of its industry peers.
ABT has a Quick Ratio of 1.24. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
ABT has a Quick ratio of 1.24. This is in the lower half of the industry: ABT underperforms 67.02% 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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.40% over the past year.
ABT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
The Revenue has been growing slightly by 6.37% in the past year.
Measured over the past years, ABT shows a small growth in Revenue. The Revenue has been growing by 5.63% on average per year.
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 9.89% yearly.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.22% yearly.
EPS Next Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y9.89%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.83, the valuation of ABT can be described as expensive.
77.66% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
ABT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.49, which indicates a rather expensive current valuation of ABT.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than 77.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. ABT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 22.49 |
4.2 Price Multiples
75.53% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
78.72% 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 | 32.4 | ||
| EV/EBITDA | 20.55 |
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)2.26
PEG (5Y)3.41
EPS Next 2Y10.79%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, 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 1.71. ABT pays more dividend than 96.28% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of ABT grows each year by 11.40%, which is quite nice.
ABT has been paying a dividend for at least 10 years, so it has a reliable track record.
ABT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.4%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ABT pays out 28.93% of its income as dividend. This is a sustainable payout ratio.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.93%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
128.9
+0.36 (+0.28%)
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-0.27%
Ins Owners0.45%
Ins Owner Change-0.03%
Market Cap224.14B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts78.89
Price Target146.86 (13.93%)
Short Float %1.17%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.93%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.82%
Min EPS beat(2)-1.06%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-0.52%
Min EPS beat(4)-1.16%
Max EPS beat(4)0.73%
EPS beat(8)3
Avg EPS beat(8)0.07%
EPS beat(12)7
Avg EPS beat(12)1.63%
EPS beat(16)11
Avg EPS beat(16)5.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-0.75%
Revenue beat(12)4
Avg Revenue beat(12)0.15%
Revenue beat(16)8
Avg Revenue beat(16)1.85%
PT rev (1m)1.58%
PT rev (3m)1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 22.49 | ||
| P/S | 5.11 | ||
| P/FCF | 32.4 | ||
| P/OCF | 24.58 | ||
| P/B | 4.4 | ||
| P/tB | 10.48 | ||
| EV/EBITDA | 20.55 |
EPS(TTM)4.99
EY3.87%
EPS(NY)5.73
Fwd EY4.45%
FCF(TTM)3.98
FCFY3.09%
OCF(TTM)5.24
OCFY4.07%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.26
PEG (5Y)3.41
Graham Number57.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 27.43% | ||
| ROCE | 11.52% | ||
| ROIC | 9.9% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 21.33% | ||
| OM | 18.29% | ||
| PM (TTM) | 31.88% | ||
| GM | 56.19% | ||
| FCFM | 15.78% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 70.33% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.77% | ||
| Profit Quality | 49.49% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.85 |
F-Score7
WACC8.35%
ROIC/WACC1.19
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 Y11.45%
EPS Next 2Y10.79%
EPS Next 3Y10.83%
EPS Next 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.43%
Revenue Next 2Y7.06%
Revenue Next 3Y7.17%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.77%
EBIT Next 3Y15.64%
EBIT Next 5Y13.66%
FCF growth 1Y53.98%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y39.24%
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 6 / 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 7 / 10.
How sustainable is the dividend of ABBOTT LABORATORIES (ABT) stock?
The dividend rating of ABBOTT LABORATORIES (ABT) is 6 / 10 and the dividend payout ratio is 28.93%.