WBAG:ABBV

Stock Analysis Report

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Market Cap

€176.5b

Last Updated

2021/07/28 22:17 UTC

Data Sources

Company Financials +

Executive Summary

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. More Details


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has AbbVie's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABBV is less volatile than 75% of Austrian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ABBV's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

ABBV

-0.2%

AT Biotechs

2.6%

AT Market


1 Year Return

23.3%

ABBV

5.2%

AT Biotechs

53.3%

AT Market

Return vs Industry: ABBV exceeded the Austrian Biotechs industry which returned 2.5% over the past year.

Return vs Market: ABBV underperformed the Austrian Market which returned 52.6% over the past year.


Shareholder returns

ABBVIndustryMarket
7 Day0.4%-0.2%2.6%
30 Day6.7%-0.5%2.0%
90 Day7.7%2.7%8.7%
1 Year29.5%23.3%5.7%5.2%59.3%53.3%
3 Year42.3%21.9%26.8%25.0%20.3%10.4%
5 Yearn/a56.7%51.3%100.5%73.2%

Long-Term Price Volatility Vs. Market

How volatile is AbbVie's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AbbVie undervalued compared to its fair value and its price relative to the market?

49.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABBV (€100.12) is trading below our estimate of fair value (€198.99)

Significantly Below Fair Value: ABBV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABBV is poor value based on its PE Ratio (40.3x) compared to the European Biotechs industry average (28.1x).

PE vs Market: ABBV is poor value based on its PE Ratio (40.3x) compared to the Austrian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABBV is poor value based on its PEG Ratio (589.3x)


Price to Book Ratio

PB vs Industry: ABBV is overvalued based on its PB Ratio (15.2x) compared to the XE Biotechs industry average (4.6x).


Future Growth

How is AbbVie forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

0.07%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBV's forecast earnings growth (0.07% per year) is below the savings rate (0.3%).

Earnings vs Market: ABBV's earnings (0.07% per year) are forecast to grow slower than the Austrian market (15% per year).

High Growth Earnings: ABBV's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABBV's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: ABBV's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABBV's Return on Equity is forecast to be very high in 3 years time (52.4%).


Past Performance

How has AbbVie performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABBV has a large one-off loss of $9.8B impacting its March 31 2021 financial results.

Growing Profit Margin: ABBV's current net profit margins (10.1%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: ABBV's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: ABBV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABBV had negative earnings growth (-39.4%) over the past year, making it difficult to compare to the Biotechs industry average (26.5%).


Return on Equity

High ROE: Whilst ABBV's Return on Equity (37.62%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is AbbVie's financial position?


Financial Position Analysis

Short Term Liabilities: ABBV's short term assets ($26.6B) do not cover its short term liabilities ($32.0B).

Long Term Liabilities: ABBV's short term assets ($26.6B) do not cover its long term liabilities ($104.8B).


Debt to Equity History and Analysis

Debt Level: ABBV's debt to equity ratio (615.4%) is considered high.

Reducing Debt: ABBV's debt to equity ratio has reduced from 687.1% to 615.4% over the past 5 years.

Debt Coverage: ABBV's debt is well covered by operating cash flow (22.1%).

Interest Coverage: ABBV's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

What is AbbVie current dividend yield, its reliability and sustainability?

4.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABBV's dividend (4.41%) is higher than the bottom 25% of dividend payers in the Austrian market (1.33%).

High Dividend: ABBV's dividend (4.41%) is in the top 25% of dividend payers in the Austrian market (3.41%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ABBV has been paying a dividend for less than 10 years.

Growing Dividend: ABBV's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (169.5%), ABBV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABBV's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Rick Gonzalez (67 yo)

8.5yrs

Tenure

US$24,007,591

Compensation

Mr. Richard A. Gonzalez, also known as Rick, serves as the Chairman of AbbVie Inc. and has been its Chief Executive Officer at AbbVie Inc. since 2013. Mr. Gonzalez served as an Executive Vice President of ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD24.01M) is above average for companies of similar size in the Austrian market ($USD3.51M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ABBV's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ABBV's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AbbVie Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AbbVie Inc.
  • Ticker: ABBV
  • Exchange: WBAG
  • Founded: 2012
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$208.344b
  • Listing Market Cap: US$176.467b
  • Shares outstanding: 1.77b
  • Website: https://www.abbvie.com

Number of Employees


Location

  • AbbVie Inc.
  • 1 North Waukegan Road
  • North Chicago
  • Illinois
  • 60064-6400
  • United States

Listings


Biography

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases;...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 22:17
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.