ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - NYSE:ABT - US0028241000 - Common Stock
134.33 USD
-0.26 (-0.19%)
ABT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. ABT gets an excellent profitability rating and is at the same time showing great financial health properties. ABT has a decent growth rate and is not valued too expensively. These ratings could make ABT a good candidate for 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.
In the past 5 years ABT has always been profitable.
Each year in the past 5 years ABT had a positive operating cash flow.
1.2 Ratios
ABT's Return On Assets of 16.64% is amongst the best of the industry. ABT outperforms 96.86% of its industry peers.
Looking at the Return On Equity, with a value of 27.65%, ABT belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
ABT has a Return On Invested Capital of 9.37%. This is amongst the best in the industry. ABT outperforms 89.01% 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 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROIC | 9.37% |
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
ABT has a Profit Margin of 32.43%. This is amongst the best in the industry. ABT outperforms 96.86% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
With an excellent Operating Margin value of 17.85%, ABT belongs to the best of the industry, outperforming 88.48% of the companies in the same industry.
ABT's Operating Margin has improved in the last couple of years.
ABT's Gross Margin of 56.20% is in line compared to the rest of the industry. ABT outperforms 53.40% of its industry peers.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.85% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.2% |
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.
The number of shares outstanding for ABT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABT has less shares outstanding
Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.98 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT has a better Altman-Z score (5.98) than 83.25% of its industry peers.
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.
ABT has a better Debt to FCF ratio (1.98) than 89.53% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.11
WACC8.47%
2.3 Liquidity
ABT has a Current Ratio of 1.82. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ABT (1.82) is worse than 68.06% 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.
The Quick ratio of ABT (1.30) is worse than 64.92% 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 10.11% 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 5.85% in the past year.
The Revenue has been growing slightly by 5.63% on average over the past years.
EPS 1Y (TTM)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
3.2 Future
Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.87% on average per year.
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 Y11.28%
EPS Next 2Y10.75%
EPS Next 3Y10.75%
EPS Next 5Y9.87%
Revenue Next Year6.48%
Revenue Next 2Y7.16%
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.
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
With a Price/Earnings ratio of 27.41, ABT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ABT is valued a bit cheaper than 75.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, ABT is valued at the same level.
The Price/Forward Earnings ratio is 23.45, which indicates a rather expensive current valuation of ABT.
77.49% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ABT to the average of the S&P500 Index (23.32), we can say ABT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 23.45 |
4.2 Price Multiples
74.87% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a rather cheap valuation: ABT is cheaper than 80.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.51 | ||
| EV/EBITDA | 22.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ABT may justify a higher PE ratio.
PEG (NY)2.43
PEG (5Y)3.61
EPS Next 2Y10.75%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.79. ABT pays more dividend than 95.81% of the companies in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
28.42% of the earnings are spent on dividend by ABT. This is a low number and sustainable payout ratio.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.42%
EPS Next 2Y10.75%
EPS Next 3Y10.75%
NYSE:ABT (10/6/2025, 9:59:03 AM)
134.33
-0.26 (-0.19%)
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 Change0%
Ins Owners0.45%
Ins Owner Change0.07%
Market Cap233.80B
Analysts78.86
Price Target144.58 (7.63%)
Short Float %1.04%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)0.05%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 23.45 | ||
| P/S | 5.42 | ||
| P/FCF | 34.51 | ||
| P/OCF | 25.87 | ||
| P/B | 4.62 | ||
| P/tB | 11.3 | ||
| EV/EBITDA | 22.15 |
EPS(TTM)4.9
EY3.65%
EPS(NY)5.73
Fwd EY4.26%
FCF(TTM)3.89
FCFY2.9%
OCF(TTM)5.19
OCFY3.87%
SpS24.77
BVpS29.05
TBVpS11.89
PEG (NY)2.43
PEG (5Y)3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.64% | ||
| ROE | 27.65% | ||
| ROCE | 10.91% | ||
| ROIC | 9.37% | ||
| ROICexc | 10.45% | ||
| ROICexgc | 19.79% | ||
| OM | 17.85% | ||
| PM (TTM) | 32.43% | ||
| GM | 56.2% | ||
| 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%
ROICexcg growth 3Y-24.08%
ROICexcg 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 | 83.38% | ||
| Profit Quality | 48.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.98 |
F-Score7
WACC8.47%
ROIC/WACC1.11
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)10.11%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%10.53%
EPS Next Y11.28%
EPS Next 2Y10.75%
EPS Next 3Y10.75%
EPS Next 5Y9.87%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%7.37%
Revenue Next Year6.48%
Revenue Next 2Y7.16%
Revenue Next 3Y7.23%
Revenue Next 5Y7.13%
EBIT growth 1Y13.84%
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%