ABBOTT LABORATORIES (ABT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABT - US0028241000 - Common Stock
124.19 USD
-1.1 (-0.88%)
124.19 USD
0 (0%)
Overall ABT gets a fundamental rating of 7 out of 10. We evaluated ABT against 186 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 has a decent growth rate and is not valued too expensively. Finally ABT also has an excellent dividend rating. These ratings could make ABT a good candidate for dividend and 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.
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
With an excellent Return On Assets value of 16.60%, ABT belongs to the best of the industry, outperforming 97.31% of the companies in the same industry.
ABT's Return On Equity of 27.43% is amongst the best of the industry. ABT outperforms 98.39% of its industry peers.
With an excellent Return On Invested Capital value of 9.90%, ABT belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABT is in line with the industry average of 8.84%.
| 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
ABT has a better Profit Margin (31.88%) than 97.85% of its industry peers.
In the last couple of years the Profit Margin of ABT has grown nicely.
Looking at the Operating Margin, with a value of 18.29%, ABT belongs to the top of the industry, outperforming 89.78% of the companies in the same industry.
ABT's Operating Margin has improved in the last couple of years.
ABT has a Gross Margin (56.19%) which is in line with 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABT is still 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
ABT has a better debt/assets ratio than last year.
2.2 Solvency
ABT has an Altman-Z score of 5.73. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABT (5.73) is better than 81.18% of its industry peers.
The Debt to FCF ratio of ABT is 1.87, which is an excellent value as it means it would take ABT, only 1.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABT (1.87) is better than 88.17% of its industry peers.
ABT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
ABT has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.73 |
ROIC/WACC1
WACC9.93%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ABT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, ABT is doing worse than 67.74% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that ABT should not have too much problems paying its short term obligations.
The Quick ratio of ABT (1.24) is worse than 65.59% 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 | 1.7 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ABT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.40%, 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 6.37%.
The Revenue has been growing slightly by 5.63% on average over the past years.
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
Based on estimates for the next years, ABT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
ABT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.22% yearly.
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue Next Year6.44%
Revenue Next 2Y7.2%
Revenue Next 3Y7.33%
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 24.89, the valuation of ABT can be described as rather expensive.
ABT's Price/Earnings ratio is a bit cheaper when compared to the industry. ABT is cheaper than 76.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABT to the average of the S&P500 Index (26.60), we can say ABT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.66, the valuation of ABT can be described as rather expensive.
77.96% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ABT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 21.66 |
4.2 Price Multiples
76.34% of the companies in the same industry are more expensive than ABT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ABT is valued a bit cheaper than 78.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.22 | ||
| EV/EBITDA | 19.98 |
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)2.17
PEG (5Y)3.28
EPS Next 2Y10.8%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 2.02%.
ABT's Dividend Yield is rather good when compared to the industry average which is at 0.20. ABT pays more dividend than 96.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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
ABT pays out 28.93% 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.
DP28.93%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
124.19
-1.1 (-0.88%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.25%
Ins Owners0.45%
Ins Owner Change-0.06%
Market Cap215.95B
Revenue(TTM)43.84B
Net Income(TTM)13.98B
Analysts79.43
Price Target146.81 (18.21%)
Short Float %0.92%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)-0.04%
PT rev (3m)1.71%
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)0.04%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 21.66 | ||
| P/S | 4.93 | ||
| P/FCF | 31.22 | ||
| P/OCF | 23.68 | ||
| P/B | 4.24 | ||
| P/tB | 10.1 | ||
| EV/EBITDA | 19.98 |
EPS(TTM)4.99
EY4.02%
EPS(NY)5.73
Fwd EY4.62%
FCF(TTM)3.98
FCFY3.2%
OCF(TTM)5.24
OCFY4.22%
SpS25.21
BVpS29.3
TBVpS12.3
PEG (NY)2.17
PEG (5Y)3.28
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 | 5.73 |
F-Score7
WACC9.93%
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)10.4%
EPS 3Y-3.58%
EPS 5Y7.59%
EPS Q2Q%7.44%
EPS Next Y11.44%
EPS Next 2Y10.8%
EPS Next 3Y10.58%
EPS Next 5Y9.89%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y-0.88%
Revenue growth 5Y5.63%
Sales Q2Q%6.9%
Revenue Next Year6.44%
Revenue Next 2Y7.2%
Revenue Next 3Y7.33%
Revenue Next 5Y7.22%
EBIT growth 1Y15.18%
EBIT growth 3Y-6.62%
EBIT growth 5Y8.41%
EBIT Next Year27.08%
EBIT Next 3Y15.42%
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 7 / 10 to ABT.
What is the valuation status of ABBOTT LABORATORIES (ABT) stock?
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.
What are the PE and PB ratios of ABBOTT LABORATORIES (ABT) stock?
The Price/Earnings (PE) ratio for ABBOTT LABORATORIES (ABT) is 24.89 and the Price/Book (PB) ratio is 4.24.
Can you provide the expected EPS growth for ABT stock?
The Earnings per Share (EPS) of ABBOTT LABORATORIES (ABT) is expected to grow by 11.44% in the next year.