Market Cap
CHF39.4b
Last Updated
2019/10/14 20:42 UTC
Data Sources
Company Financials +
Executive Summary
ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide.
Snowflake
Fundamentals
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has ABB's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.2%
ABBN
2.2%
CH Electrical
0.4%
CH Market
1 Year Return
-11.8%
ABBN
-12.0%
CH Electrical
11.4%
CH Market
Return vs Industry: ABBN matched the Swiss Electrical industry which returned -12% over the past year.
Return vs Market: ABBN underperformed the Swiss Market which returned 11.4% over the past year.
Shareholder returns
| ABBN | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 2.2% | 0.4% |
| 30 Day | -8.8% | -8.5% | -0.3% |
| 90 Day | -1.6% | -2.5% | 1.8% |
| 1 Year | -8.2%-11.8% | -8.6%-12.0% | 17.4%11.4% |
| 3 Year | -6.7%-16.4% | -6.4%-15.9% | 34.9%21.3% |
| 5 Year | 14.5%-4.7% | 13.5%-5.0% | 42.2%19.9% |
Price Volatility Vs. Market
How volatile is ABB's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Is Now The Time To Look At Buying ABB Ltd (VTX:ABBN)?1 week ago | Simply Wall St
ABB Ltd (VTX:ABBN): Does The Earnings Decline Make It An Underperformer?2 weeks ago | Simply Wall St
Have Insiders Been Buying ABB Ltd (VTX:ABBN) Shares?Valuation
Is ABB undervalued compared to its fair value and its price relative to the market?
6.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: ABBN (CHF18.48) is trading below our estimate of fair value (CHF19.76)
Significantly Undervalued: ABBN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ABBN is poor value based on its PE Ratio (44.7x) compared to the Electrical industry average (19.3x).
PE vs Market: ABBN is poor value based on its PE Ratio (44.7x) compared to the Swiss market (18.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: ABBN is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: ABBN is overvalued based on its PB Ratio (3.1x) compared to the CH Electrical industry average (2x).
Next Steps
Future Growth
How is ABB forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
32.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABBN's forecast earnings growth (32.9% per year) is above the savings rate (3.3%).
Earnings vs Market: ABBN's earnings (32.9% per year) are forecast to grow faster than the Swiss market (10.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ABBN's revenue (1.4% per year) is forecast to grow slower than the Swiss market (3.5% per year).
High Growth Revenue: ABBN's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: ABBN's Return on Equity is forecast to be high in 3 years time (24.2%)
Next Steps
Past Performance
How has ABB performed over the past 5 years?
-17.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ABBN's earnings have declined by -17.6% per year over the past 5 years.
Accelerating Growth: ABBN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ABBN had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Electrical industry average (0.7%).
Return on Equity
High ROE: ABBN's Return on Equity (7.5%) is considered low.
Return on Assets
ROA vs Industry: ABBN's Return on Assets is below or equal to the Electrical industry average last year.
Return on Capital Employed
ROCE Improving: ABBN's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is ABB's financial position?
Financial Position Analysis
Short Term Liabilities: ABBN's short term assets ($25.3B) exceeds its short term liabilities ($19.2B)
Long Term Liabilities: ABBN's short term assets (25.3B) exceeds its long term liabilities (12.9B)
Debt to Equity History and Analysis
Debt Level: ABBN's debt to equity ratio (75.9%) is considered high
Reducing Debt: ABBN's debt to equity ratio has increased from 48.5% to 75.9% over the past 5 years.
Debt Coverage: ABBN's debt is well covered by operating cash flow (21.4%).
Interest Coverage: ABBN's interest payments on its debt are well covered by EBIT (18.5x coverage).
Balance Sheet
Inventory Level: ABBN has a high level of physical assets or inventory.
Debt Coverage by Assets: ABBN's debt is covered by short term assets (assets are 2.491970x debt).
Next Steps
Dividend
What is ABB's current dividend yield, its reliability and sustainability?
4.22%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ABBN's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Swiss market (1.9%).
High Dividend: ABBN's dividend (4.22%) is in the top 25% of dividend payers in the Swiss market (3.75%)
Stable Dividend: ABBN's dividends per share have been stable in the past 10 years.
Growing Dividend: ABBN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (196.1%), ABBN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ABBN's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).
Next Steps
Management
What is the CEO of ABB's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Peter Voser (61yo)
0.5yrs
Tenure
Mr. Peter Robert Voser has been Chief Executive Officer of ABB Ltd. since April 2019 and has been its Chairman since April 2015. Mr. Voser served as Interim Chief Executive Officer of ABB Ltd. since April ...
Management Age and Tenure
2.8yrs
Average Tenure
56.5yo
Average Age
Experienced Management: ABBN's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
3.5yrs
Average Tenure
58yo
Average Age
Experienced Board: ABBN's board of directors are considered experienced (3.5 years average tenure).
Insider Trading
Insider Buying: ABBN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive President of Robotics & Discrete Automation Business |
| Shares | 690 |
| Max Price | US$17.94 |
| Entity | Individual |
| Role | Senior Key Executive President of Industrial Automation Division |
| Shares | 29,431 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive President of Robotics & Discrete Automation Business |
| Shares | 24,435 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive President of Power Grids Business |
| Shares | 31,232 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive President of Europe |
| Shares | 44,905 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive President of Asia |
| Shares | 16,855 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive President of Electrification Products Division |
| Shares | 29,541 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Chief Legal Officer General Counsel |
| Shares | 43,767 |
| Max Price | US$18.84 |
| Entity | Individual |
| Role | Senior Key Executive Executive Officer |
| Shares | 27,935 |
| Max Price | US$18.87 |
| Entity | Company |
| Shares | 5,400,000 |
| Max Price | US$19.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent & Non-Executive Director |
| Shares | 3,066 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent & Non-Executive Director |
| Shares | 3,210 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent & Non-Executive Director |
| Shares | 2,973 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Chairman |
| Shares | 29,943 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,973 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent & Non-Executive Director |
| Shares | 3,511 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,326 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 7,970 |
| Max Price | US$19.07 |
| Entity | Individual |
| Shares | 3,311 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent & Non-Executive Director |
| Shares | 4,013 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Vice Chairman Independent Vice Chairman |
| Shares | 4,515 |
| Max Price | US$19.07 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 42,572 |
| Max Price | US$19.05 |
| Entity | Individual |
| Shares | 46,073 |
| Max Price | US$19.67 |
Ownership Breakdown
Management Team
Peter Voser (61yo)
CEO & Chairman
- Tenure: 0.5yrs
Timo Ihamuotila (53yo)
Executive VP & CFO
- Tenure: 2.5yrs
- Compensation: US$3.54m
Peter Terwiesch (53yo)
President of Industrial Automation Division
- Tenure: 2.8yrs
- Compensation: US$3.14m
Greg Scheu (58yo)
Executive Officer
- Tenure: 5.9yrs
- Compensation: US$2.49m
Diane de Saint Victor (64yo)
General Counsel
- Tenure: 0yrs
- Compensation: US$3.48m
Claudio Facchin (54yo)
President of Power Grids Business
- Tenure: 9.8yrs
- Compensation: US$2.74m
Tarak Mehta (53yo)
President of Electrification Products Division
- Tenure: 0.5yrs
- Compensation: US$3.21m
Frank Duggan (60yo)
President of Europe
- Tenure: 4.8yrs
- Compensation: US$2.96m
Chunyuan Gu (61yo)
President of Asia
- Tenure: 0yrs
- Compensation: US$2.92m
Sami Atiya (55yo)
President of Robotics & Discrete Automation Business
- Tenure: 0yrs
- Compensation: US$2.68m
Board Members
Fred Curado (58yo)
Independent & Non-Executive Director
- Tenure: 3.5yrs
Matti Alahuhta (67yo)
Independent & Non-Executive Director
- Tenure: 5.5yrs
Jacob Wallenberg (63yo)
Independent Vice Chairman
- Tenure: 4.5yrs
Peter Voser (61yo)
CEO & Chairman
- Tenure: 0.5yrs
Satish Pai (58yo)
Independent & Non-Executive Director
- Tenure: 3.5yrs
Lars Förberg (54yo)
Non-Executive Director
- Tenure: 2.5yrs
David Meline (62yo)
Independent & Non-Executive Director
- Tenure: 3.5yrs
David Constable (58yo)
Independent & Non-Executive Director
- Tenure: 4.5yrs
Jennifer Li (51yo)
Independent Director
- Tenure: 1.6yrs
Geraldine Matchett (47yo)
Independent Director
- Tenure: 1.6yrs
Company Information
ABB Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ABB Ltd
- Ticker: ABBN
- Exchange: SWX
- Founded: 1883
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: CHF39.404b
- Shares outstanding: 2.13b
- Website: https://www.new.abb.com
Number of Employees
Location
- ABB Ltd
- Affolternstrasse 44
- Zurich
- Zurich
- 8050
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ABLZ.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jun 1999 |
| ABBN | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jun 1999 |
| ABB | OM (OMX Nordic Exchange Stockholm) | Yes | Common Stock | SE | SEK | Jun 1999 |
| ABJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1999 |
| 0NX2 | LSE (London Stock Exchange) | Yes | Common Stock | GB | SEK | Jun 1999 |
| ABJ | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jun 1999 |
| ABB | NYSE (New York Stock Exchange) | ADR EACH REPR 1 ORD CHF1.03 | US | USD | Apr 2001 | |
| ABJA | DB (Deutsche Boerse AG) | ADR EACH REPR 1 ORD CHF1.03 | DE | EUR | Apr 2001 | |
| ABB N | BMV (Bolsa Mexicana de Valores) | ADR EACH REPR 1 ORD CHF1.03 | MX | MXN | Apr 2001 |
Biography
ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. Its Electrification ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 20:42 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.