ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
NYSE:ABT - New York Stock Exchange, Inc. - US0028241000 - Common Stock - Currency: USD
Taking everything into account, ABT scores 6 out of 10 in our fundamental rating. ABT was compared to 191 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.
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 has a Return On Assets of 16.46%. This is amongst the best in the industry. ABT outperforms 96.34% of its industry peers.
With an excellent Return On Equity value of 28.12%, ABT belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
ABT has a better Return On Invested Capital (8.98%) than 90.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABT is above the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.46% | ||
| ROE | 28.12% | ||
| ROIC | 8.98% |
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
Looking at the Profit Margin, with a value of 31.95%, ABT belongs to the top of the industry, outperforming 96.86% of the companies in the same industry.
ABT's Profit Margin has improved in the last couple of years.
The Operating Margin of ABT (16.77%) is better than 88.48% of its industry peers.
ABT's Operating Margin has improved in the last couple of years.
ABT's Gross Margin of 55.66% is in line compared to the rest of the industry. ABT outperforms 50.26% of its industry peers.
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 | 16.77% | ||
| PM (TTM) | 31.95% | ||
| GM | 55.66% |
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.
ABT has about the same amout of shares outstanding than it did 1 year ago.
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 5.79. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a Altman-Z score of 5.79. This is amongst the best in the industry. ABT outperforms 84.29% of its industry peers.
ABT has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as ABT would need 2.22 years to pay back of all of its debts.
The Debt to FCF ratio of ABT (2.22) is better than 90.05% 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.
The Debt to Equity ratio of ABT (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 5.79 |
ROIC/WACC1
WACC9%
2.3 Liquidity
ABT has a Current Ratio of 1.67. 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 (1.67) than 70.16% of its industry peers.
ABT has a Quick Ratio of 1.23. 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 (1.23) is worse than 69.11% 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 | 1.67 | ||
| Quick Ratio | 1.23 |
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.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
ABT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
The Revenue has been growing slightly by 5.63% on average over the past years.
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 9.75% on average over the next years. This is quite good.
Based on estimates for the next years, ABT will show a small growth in Revenue. The Revenue will grow by 6.77% on average per year.
EPS Next Y11.46%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
EPS Next 5Y9.75%
Revenue Next Year5.65%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.77%
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
ABT is valuated quite expensively with a Price/Earnings ratio of 27.17.
Compared to the rest of the industry, the Price/Earnings ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 75.92% of the companies listed in the same industry.
ABT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.64 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 78.01% of the companies are valued more expensively.
ABT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 22.64 |
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 73.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABT indicates a somewhat cheap valuation: ABT is cheaper than 77.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.47 | ||
| EV/EBITDA | 22.72 |
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)2.37
PEG (5Y)3.58
EPS Next 2Y10.84%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 1.94, ABT pays a better dividend. On top of this ABT pays more dividend than 95.81% of the companies listed in the same industry.
ABT's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
On average, the dividend of ABT grows each year by 11.40%, which is quite nice.
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
ABT pays out 28.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of ABT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.62%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
129.89
-1.09 (-0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners79.14%
Inst Owner Change0.33%
Ins Owners0.45%
Ins Owner Change0.6%
Market Cap225.27B
Analysts80
Price Target140.15 (7.9%)
Short Float %1.33%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend2.21
Dividend Growth(5Y)11.4%
DP28.62%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.75%
Min EPS beat(2)-1.16%
Max EPS beat(2)-0.34%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-1.16%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)6.97%
EPS beat(16)13
Avg EPS beat(16)9.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)-0.15%
Revenue beat(8)3
Avg Revenue beat(8)0.18%
Revenue beat(12)7
Avg Revenue beat(12)2.21%
Revenue beat(16)10
Avg Revenue beat(16)2.94%
PT rev (1m)1.79%
PT rev (3m)4.99%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 22.64 | ||
| P/S | 5.37 | ||
| P/FCF | 35.47 | ||
| P/OCF | 26.32 | ||
| P/B | 4.73 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 22.72 |
EPS(TTM)4.78
EY3.68%
EPS(NY)5.74
Fwd EY4.42%
FCF(TTM)3.66
FCFY2.82%
OCF(TTM)4.93
OCFY3.8%
SpS24.19
BVpS27.48
TBVpS10.33
PEG (NY)2.37
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.46% | ||
| ROE | 28.12% | ||
| ROCE | 10.46% | ||
| ROIC | 8.98% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 20.46% | ||
| OM | 16.77% | ||
| PM (TTM) | 31.95% | ||
| GM | 55.66% | ||
| FCFM | 15.14% |
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 | 2.22 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 68.58% | ||
| Cap/Sales | 5.26% | ||
| Interest Coverage | 11.65 | ||
| Cash Conversion | 83.46% | ||
| Profit Quality | 47.39% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 5.79 |
F-Score7
WACC9%
ROIC/WACC1
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 Y11.46%
EPS Next 2Y10.84%
EPS Next 3Y10.72%
EPS Next 5Y9.75%
Revenue 1Y (TTM)5%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%3.95%
Revenue Next Year5.65%
Revenue Next 2Y6.52%
Revenue Next 3Y6.8%
Revenue Next 5Y6.77%
EBIT growth 1Y4.67%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.12%
EBIT Next 3Y15.31%
EBIT Next 5Y10.73%
FCF growth 1Y25.54%
FCF growth 3Y-9.78%
FCF growth 5Y7.14%
OCF growth 1Y17.86%
OCF growth 3Y-6.69%
OCF growth 5Y6.88%