ABBOTT LABORATORIES (ABT)
US0028241000 - Common Stock
Taking everything into account, ABT scores 6 out of 10 in our fundamental rating. ABT was compared to 195 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 has a correct valuation and a medium growth rate.
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 7.82%. This is amongst the best in the industry. ABT outperforms 88.21% of its industry peers.
ABT's Return On Equity of 14.83% is amongst the best of the industry. ABT outperforms 90.77% of its industry peers.
ABT's Return On Invested Capital of 9.59% is amongst the best of the industry. ABT outperforms 90.26% of its industry peers.
ABT had an Average Return On Invested Capital over the past 3 years of 11.27%. This is above the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 14.83% | ||
| ROIC | 9.59% |
ROA(3y)8.84%
ROA(5y)7.63%
ROE(3y)17.82%
ROE(5y)15.81%
ROIC(3y)11.27%
ROIC(5y)9.65%
1.3 Margins
With an excellent Profit Margin value of 14.27%, ABT belongs to the best of the industry, outperforming 91.79% of the companies in the same industry.
In the last couple of years the Profit Margin of ABT has grown nicely.
ABT has a better Operating Margin (16.76%) than 89.23% of its industry peers.
ABT's Operating Margin has improved in the last couple of years.
ABT has a Gross Margin (55.32%) which is in line with its industry peers.
ABT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.76% | ||
| PM (TTM) | 14.27% | ||
| GM | 55.32% |
OM growth 3Y2.22%
OM growth 5Y6.56%
PM growth 3Y3.18%
PM growth 5Y13%
GM growth 3Y-0.85%
GM growth 5Y-1.11%
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.
Compared to 1 year ago, ABT has less shares outstanding
The number of shares outstanding for ABT has been reduced compared to 5 years ago.
Compared to 1 year ago, ABT has an improved debt to assets ratio.
2.2 Solvency
ABT has an Altman-Z score of 4.93. This indicates that ABT is financially healthy and has little risk of bankruptcy at the moment.
ABT has a Altman-Z score of 4.93. This is in the better half of the industry: ABT outperforms 78.46% of its industry peers.
ABT has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as ABT would need 2.90 years to pay back of all of its debts.
The Debt to FCF ratio of ABT (2.90) is better than 88.21% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that ABT is not too dependend on debt financing.
The Debt to Equity ratio of ABT (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 4.93 |
ROIC/WACC0.96
WACC9.95%
2.3 Liquidity
ABT has a Current Ratio of 1.64. This is a normal value and indicates that ABT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.64, ABT is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
ABT has a Quick Ratio of 1.16. 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 (1.16) is worse than 78.46% 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 | 1.64 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for ABT have decreased strongly by -16.85% in the last year.
Measured over the past years, ABT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
ABT shows a decrease in Revenue. In the last year, the revenue decreased by -8.12%.
The Revenue has been growing slightly by 5.58% on average over the past years.
EPS 1Y (TTM)-16.85%
EPS 3Y6.75%
EPS 5Y9.04%
EPS growth Q2Q15.53%
Revenue 1Y (TTM)-8.12%
Revenue growth 3Y5.04%
Revenue growth 5Y5.58%
Revenue growth Q2Q1.49%
3.2 Future
ABT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.71% yearly.
The Revenue is expected to grow by 6.71% on average over the next years.
EPS Next Y4.53%
EPS Next 2Y7.65%
EPS Next 3Y8.87%
EPS Next 5Y10.71%
Revenue Next Year4.84%
Revenue Next 2Y5.98%
Revenue Next 3Y6.37%
Revenue Next 5Y6.71%
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 stable.
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
With a Price/Earnings ratio of 24.22, ABT is valued on the expensive side.
82.05% of the companies in the same industry are more expensive than ABT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.20. ABT is around the same levels.
Based on the Price/Forward Earnings ratio of 23.17, the valuation of ABT can be described as rather expensive.
81.54% of the companies in the same industry are more expensive than ABT, based on the Price/Forward Earnings ratio.
ABT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 23.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABT is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
83.59% of the companies in the same industry are more expensive than ABT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.88 | ||
| EV/EBITDA | 19.31 |
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)5.35
PEG (5Y)2.68
EPS Next 2Y7.65%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
ABT has a Yearly Dividend Yield of 2.06%.
Compared to an average industry Dividend Yield of 3.03, ABT pays a better dividend. On top of this ABT pays more dividend than 96.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ABT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of ABT is nicely growing with an annual growth rate of 12.67%!
ABT has been paying a dividend for at least 10 years, so it has a reliable track record.
ABT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.67%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
ABT pays out 62.14% of its income as dividend. This is not a sustainable payout ratio.
ABT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.14%
EPS Next 2Y7.65%
EPS Next 3Y8.87%
ABBOTT LABORATORIES
NYSE:ABT (4/26/2024, 4:05:00 PM)
After market: 107.74 +0.21 (+0.2%)107.53
+0.67 (+0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap186.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 23.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.35
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 14.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.76% | ||
| PM (TTM) | 14.27% | ||
| GM | 55.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.85%
EPS 3Y6.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.12%
Revenue growth 3Y5.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y