ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
Taking everything into account, ABT scores 7 out of 10 in our fundamental rating. ABT was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ABT a very profitable company, without any liquidiy or solvency issues. ABT is not valued too expensively and it also shows a decent growth rate. These ratings would make ABT suitable 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.
In the past 5 years ABT always reported a positive cash flow from operatings.
1.2 Ratios
ABT has a Return On Assets of 16.58%. This is amongst the best in the industry. ABT outperforms 96.79% of its industry peers.
ABT's Return On Equity of 27.66% is amongst the best of the industry. ABT outperforms 96.79% of its industry peers.
With an excellent Return On Invested Capital value of 9.27%, ABT belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
ABT had an Average Return On Invested Capital over the past 3 years of 10.45%. This is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROIC | 9.27% |
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 31.89%, ABT belongs to the best of the industry, outperforming 97.33% of the companies in the same industry.
ABT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.45%, ABT belongs to the top of the industry, outperforming 88.77% of the companies in the same industry.
In the last couple of years the Operating Margin of ABT has grown nicely.
The Gross Margin of ABT (56.10%) is comparable to the rest of the industry.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% |
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.
The number of shares outstanding for ABT has been reduced compared to 5 years ago.
ABT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.08 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT has a Altman-Z score of 6.08. This is amongst the best in the industry. ABT outperforms 81.28% of its industry peers.
The Debt to FCF ratio of ABT is 1.99, which is an excellent value as it means it would take ABT, only 1.99 years of fcf income to pay off all of its debts.
ABT has a Debt to FCF ratio of 1.99. This is amongst the best in the industry. ABT outperforms 89.84% of its industry peers.
ABT has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, ABT is in line with its industry, outperforming 51.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 6.08 |
ROIC/WACC1.08
WACC8.62%
2.3 Liquidity
ABT has a Current Ratio of 1.78. 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 Current ratio of 1.78. This is in the lower half of the industry: ABT underperforms 70.59% of its industry peers.
ABT has a Quick Ratio of 1.27. 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 1.27. This is in the lower half of the industry: ABT underperforms 69.52% 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 | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.88%, which is quite good.
Measured over the past 5 years, ABT shows a small growth in Earnings Per Share. The EPS has been growing by 7.59% on average per year.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
ABT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.63% yearly.
EPS 1Y (TTM)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
3.2 Future
The Earnings Per Share is expected to grow by 9.82% on average over the next years. This is quite good.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y11.64%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
EPS Next 5Y9.82%
Revenue Next Year6.44%
Revenue Next 2Y7.08%
Revenue Next 3Y7.23%
Revenue Next 5Y7.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 28.06, the valuation of ABT can be described as expensive.
77.54% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ABT to the average of the S&P500 Index (27.28), we can say ABT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.35, the valuation of ABT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 75.40% of the companies listed in the same industry.
ABT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.06 | ||
| Fwd PE | 23.35 |
4.2 Price Multiples
ABT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABT is cheaper than 73.26% of the companies in the same industry.
ABT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABT is cheaper than 80.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.05 | ||
| EV/EBITDA | 22.67 |
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)2.41
PEG (5Y)3.7
EPS Next 2Y10.89%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.77%.
ABT's Dividend Yield is rather good when compared to the industry average which is at 1.82. ABT pays more dividend than 96.26% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, ABT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 11.40%!
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
28.92% 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.
DP28.92%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
134.11
-2.15 (-1.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change2.32%
Ins Owners0.45%
Ins Owner Change0.69%
Market Cap233.33B
Analysts78.75
Price Target144.51 (7.75%)
Short Float %1.2%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-1.16%
Max EPS beat(2)0.73%
EPS beat(4)2
Avg EPS beat(4)0.36%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.86%
EPS beat(12)9
Avg EPS beat(12)5.62%
EPS beat(16)13
Avg EPS beat(16)9.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.19%
Revenue beat(8)2
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)3.05%
PT rev (1m)0.35%
PT rev (3m)3.01%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.06 | ||
| Fwd PE | 23.35 | ||
| P/S | 5.51 | ||
| P/FCF | 35.05 | ||
| P/OCF | 26.07 | ||
| P/B | 4.78 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 22.67 |
EPS(TTM)4.78
EY3.56%
EPS(NY)5.74
Fwd EY4.28%
FCF(TTM)3.83
FCFY2.85%
OCF(TTM)5.14
OCFY3.84%
SpS24.34
BVpS28.05
TBVpS11.03
PEG (NY)2.41
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.58% | ||
| ROE | 27.66% | ||
| ROCE | 10.8% | ||
| ROIC | 9.27% | ||
| ROICexc | 10.3% | ||
| ROICexgc | 19.85% | ||
| OM | 17.45% | ||
| PM (TTM) | 31.89% | ||
| GM | 56.1% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 72.36% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.75% | ||
| Profit Quality | 49.3% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 6.08 |
F-Score7
WACC8.62%
ROIC/WACC1.08
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)8.88%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%11.22%
EPS Next Y11.64%
EPS Next 2Y10.89%
EPS Next 3Y10.73%
EPS Next 5Y9.82%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
Revenue Next Year6.44%
Revenue Next 2Y7.08%
Revenue Next 3Y7.23%
Revenue Next 5Y7.19%
EBIT growth 1Y12%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year29.19%
EBIT Next 3Y15.9%
EBIT Next 5Y10.98%
FCF growth 1Y-2.43%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y3.36%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%