ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - US0028241000 - Common Stock
131.87 USD
-0.72 (-0.54%)
131.87 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ABT. ABT was compared to 185 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 decent growth rate and is not valued too expensively. These ratings would make ABT suitable 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.
Each year in the past 5 years ABT has been profitable.
ABT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.64%, ABT belongs to the top of the industry, outperforming 96.76% of the companies in the same industry.
The Return On Equity of ABT (27.65%) is better than 97.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.37%, ABT belongs to the top of the industry, outperforming 88.65% 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 8.44%.
| 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's Profit Margin of 32.43% is amongst the best of the industry. ABT outperforms 96.22% of its industry peers.
ABT's Profit Margin has improved in the last couple of years.
ABT has a better Operating Margin (17.85%) than 88.65% of its industry peers.
In the last couple of years the Operating Margin of ABT has grown nicely.
ABT has a Gross Margin of 56.20%. This is comparable to the rest of the industry: ABT outperforms 52.97% 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
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.
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
An Altman-Z score of 5.92 indicates that ABT is not in any danger for bankruptcy at the moment.
ABT has a better Altman-Z score (5.92) than 83.78% of its industry peers.
ABT has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
ABT has a better Debt to FCF ratio (1.98) than 89.19% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that ABT is not too dependend on debt financing.
ABT's Debt to Equity ratio of 0.26 is in line compared to the rest of the industry. ABT outperforms 51.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.09
WACC8.59%
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 68.65% of its industry peers.
A Quick Ratio of 1.30 indicates that ABT should not have too much problems paying its short term obligations.
ABT has a worse Quick ratio (1.30) than 64.32% of its industry peers.
The current and quick ratio evaluation for ABT 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 | 1.82 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.11%, which is quite good.
ABT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.85%.
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)10.11%
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
The Earnings Per Share is expected to grow by 9.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.08% on average over the next years.
EPS Next Y11.28%
EPS Next 2Y10.75%
EPS Next 3Y10.76%
EPS Next 5Y9.87%
Revenue Next Year6.48%
Revenue Next 2Y7.16%
Revenue Next 3Y7.22%
Revenue Next 5Y7.08%
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 26.91, the valuation of ABT can be described as expensive.
ABT's Price/Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 75.68% of the companies in the same industry.
ABT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 23.02 indicates a rather expensive valuation of ABT.
Based on the Price/Forward Earnings ratio, ABT is valued a bit cheaper than the industry average as 74.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, ABT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 23.02 |
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 73.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABT is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.88 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)3.55
EPS Next 2Y10.75%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.79%. 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 1.74. ABT pays more dividend than 95.68% of the companies in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 2Y10.75%
EPS Next 3Y10.76%
131.87
-0.72 (-0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.67%
Inst Owner Change-0.49%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap229.51B
Analysts78.86
Price Target144.34 (9.46%)
Short Float %1.06%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)-1.36%
PT rev (3m)0.23%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 23.02 | ||
| P/S | 5.32 | ||
| P/FCF | 33.88 | ||
| P/OCF | 25.4 | ||
| P/B | 4.54 | ||
| P/tB | 11.09 | ||
| EV/EBITDA | 21.83 |
EPS(TTM)4.9
EY3.72%
EPS(NY)5.73
Fwd EY4.34%
FCF(TTM)3.89
FCFY2.95%
OCF(TTM)5.19
OCFY3.94%
SpS24.77
BVpS29.05
TBVpS11.89
PEG (NY)2.39
PEG (5Y)3.55
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 | 5.92 |
F-Score7
WACC8.59%
ROIC/WACC1.09
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 3Y10.76%
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 3Y7.22%
Revenue Next 5Y7.08%
EBIT growth 1Y13.84%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.75%
EBIT Next 3Y15.65%
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%