ABB
- Home ›
- CH ›
- Capital Goods
ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. The last earnings update was 31 days ago. More info.
Add to Portfolio Compare Print
ABBN Share Price and Events
7 Day Returns
1 Year Returns
ABBN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| ABB (ABBN) | 0.2% | -8.4% | -2% | -20.4% | -4.4% | -9.3% |
| CH Electrical | 0.1% | -8.3% | -2% | -19.5% | -2.9% | -8.9% |
| CH Market | 1.7% | 0.3% | 2.7% | 1.5% | 14.2% | 9.8% |
1 Year Return vs Industry and Market
- ABBN underperformed the Market in Switzerland which returned 1.5% over the past year.
Value
Is ABB undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
ABB
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for ABB.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 23 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.6% |
| Perpetual Growth Rate | 10-Year CH Government Bond Rate | 3.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CH Govt Bond Rate | 3.3% |
| Equity Risk Premium | S&P Global | 6% |
| Electrical Unlevered Beta | Simply Wall St/ S&P Global | 1.13 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.132 (1 + (1- 18%) (23.59%)) |
1.235 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.24 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.235 * 5.96%) |
10.64% |
Discounted Cash Flow Calculation for SWX:ABBN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for ABB is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.64%) |
|
|---|---|---|---|
| 2019 | 1,940.06 | Analyst x12 | 1,753.51 |
| 2020 | 2,108.91 | Analyst x11 | 1,722.85 |
| 2021 | 2,658.62 | Analyst x8 | 1,963.09 |
| 2022 | 2,779.57 | Est @ 4.55% | 1,855.05 |
| 2023 | 2,895.40 | Est @ 4.17% | 1,746.56 |
| 2024 | 3,008.31 | Est @ 3.9% | 1,640.18 |
| 2025 | 3,119.99 | Est @ 3.71% | 1,537.50 |
| 2026 | 3,231.71 | Est @ 3.58% | 1,439.43 |
| 2027 | 3,344.48 | Est @ 3.49% | 1,346.42 |
| 2028 | 3,459.02 | Est @ 3.42% | 1,258.63 |
| Present value of next 10 years cash flows | $16,263.22 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,459.02 × (1 + 3.28%) ÷ (10.64% – 3.28%) |
$48,515.22 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $48,515.22 ÷ (1 + 10.64%)10 |
$17,653.23 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $16,263.22 + $17,653.23 |
$33,916.45 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $33,916.45 / 2,132.02 |
$15.91 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/CHF
(Reporting currency to currency of SWX:ABBN) |
1.011 |
| Value per Share (CHF) |
= Value per Share in USD x Exchange Rate (USD/CHF)
= $15.91 x 1.011 |
CHF16.09 |
| Value per share (CHF) | From above. | CHF16.09 |
| Current discount | Discount to share price of
CHF19.38
= -1 x (CHF19.38 - CHF16.09) / CHF16.09 |
-20.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of ABB is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for ABB's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
ABB's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $0.68 |
| SWX:ABBN Share Price ** | SWX (2019-05-17) in CHF | CHF19.38 |
| SWX:ABBN Share Price converted to USD reporting currency | Exchange rate (CHF/ USD) 0.989 | $19.16 |
| Europe Electrical Industry PE Ratio | Median Figure of 54 Publicly-Listed Electrical Companies | 21.14x |
| Switzerland Market PE Ratio | Median Figure of 175 Publicly-Listed Companies | 17.87x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of ABB.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SWX:ABBN Share Price ÷ EPS (both in USD) = 19.16 ÷ 0.68 |
28.17x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ABB is overvalued based on earnings compared to the Europe Electrical industry average.
- ABB is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does
ABB's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 28.17x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts |
13.1%per year |
| Europe Electrical Industry PEG Ratio | Median Figure of 29 Publicly-Listed Electrical Companies | 1.86x |
| Switzerland Market PEG Ratio | Median Figure of 124 Publicly-Listed Companies | 2.26x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 28.17x ÷ 13.1% |
2.15x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ABB is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
ABB's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $6.80 |
| SWX:ABBN Share Price * | SWX (2019-05-17) in CHF | CHF19.38 |
| SWX:ABBN Share Price converted to USD reporting currency | Exchange rate (CHF/ USD) 0.989 | $19.16 |
| Switzerland Electrical Industry PB Ratio | Median Figure of 6 Publicly-Listed Electrical Companies | 2.21x |
| Switzerland Market PB Ratio | Median Figure of 211 Publicly-Listed Companies | 1.64x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SWX:ABBN Share Price ÷ Book Value per Share (both in USD) = 19.16 ÷ 6.80 |
2.82x |
* Primary Listing of ABB.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ABB is overvalued based on assets compared to the CH Electrical industry average.
Value checks
We assess ABB's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check) ABB has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is ABB expected to perform in the next 1 to 3 years based on estimates from 23 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- ABB's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
- ABB's earnings growth is expected to exceed the Switzerland market average.
- ABB's revenue growth is positive but not above the Switzerland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SWX:ABBN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts | 13.1% |
| SWX:ABBN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts | 2.3% |
| Switzerland Electrical Industry Earnings Growth Rate | Market Cap Weighted Average | 12.9% |
| Switzerland Electrical Industry Revenue Growth Rate | Market Cap Weighted Average | 2.6% |
| Switzerland Market Earnings Growth Rate | Market Cap Weighted Average | 11% |
| Switzerland Market Revenue Growth Rate | Market Cap Weighted Average | 3.8% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 31,361 | 2,882 | 2 | |
| 2022-12-31 | 30,510 | 2,750 | 2 | |
| 2021-12-31 | 30,470 | 3,661 | 2,611 | 18 |
| 2020-12-31 | 29,658 | 3,032 | 2,437 | 23 |
| 2019-12-31 | 28,882 | 2,918 | 1,946 | 23 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 28,068 | 3,186 | 1,450 |
| 2018-12-31 | 27,662 | 2,924 | 1,450 |
| 2018-09-30 | 24,751 | 2,926 | 1,203 |
| 2018-06-30 | 24,218 | 3,315 | 1,176 |
| 2018-03-31 | 23,783 | 2,772 | 1,027 |
| 2017-12-31 | 25,196 | 3,799 | 1,367 |
| 2017-09-30 | 34,025 | 3,358 | 2,249 |
| 2017-06-30 | 33,556 | 3,485 | 2,225 |
| 2017-03-31 | 33,779 | 4,100 | 2,108 |
| 2016-12-31 | 24,929 | 3,843 | 1,100 |
| 2016-09-30 | 34,077 | 4,409 | 1,663 |
| 2016-06-30 | 34,341 | 4,501 | 1,688 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
All data from ABB Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1.68 | 1.68 | 1.68 | 1.00 |
| 2022-12-31 | 1.56 | 1.56 | 1.56 | 1.00 |
| 2021-12-31 | 1.36 | 1.74 | 1.08 | 10.00 |
| 2020-12-31 | 1.12 | 1.43 | 0.85 | 12.00 |
| 2019-12-31 | 0.89 | 1.00 | 0.76 | 10.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.68 |
| 2018-12-31 | 0.68 |
| 2018-09-30 | 0.56 |
| 2018-06-30 | 0.55 |
| 2018-03-31 | 0.48 |
| 2017-12-31 | 0.64 |
| 2017-09-30 | 1.05 |
| 2017-06-30 | 1.04 |
| 2017-03-31 | 0.98 |
| 2016-12-31 | 0.51 |
| 2016-09-30 | 0.77 |
| 2016-06-30 | 0.77 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess ABB's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
ABB has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has ABB performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- ABB's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- ABB's 1-year earnings growth exceeds its 5-year average (41.2% vs -15.5%)
- ABB's earnings growth has exceeded the Europe Electrical industry average in the past year (41.2% vs 5.9%).
Earnings and Revenue History
All data from ABB Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 28,068.00 | 1,450.00 | 5,241.00 | 1,154.00 |
| 2018-12-31 | 27,662.00 | 1,450.00 | 5,137.00 | 1,142.00 |
| 2018-09-30 | 24,751.00 | 1,203.00 | 4,819.00 | 997.00 |
| 2018-06-30 | 24,218.00 | 1,176.00 | 4,692.00 | 1,027.00 |
| 2018-03-31 | 23,783.00 | 1,027.00 | 4,672.00 | 1,000.00 |
| 2017-12-31 | 25,196.00 | 1,367.00 | 4,757.00 | 1,018.00 |
| 2017-09-30 | 34,025.00 | 2,249.00 | 5,337.00 | 1,329.00 |
| 2017-06-30 | 33,556.00 | 2,225.00 | 5,233.00 | 1,277.00 |
| 2017-03-31 | 33,779.00 | 2,108.00 | 5,164.00 | 1,291.00 |
| 2016-12-31 | 24,929.00 | 1,100.00 | 4,531.00 | 961.00 |
| 2016-09-30 | 34,077.00 | 1,663.00 | 5,234.00 | 1,318.00 |
| 2016-06-30 | 34,341.00 | 1,688.00 | 5,244.00 | 1,330.00 |
| 2016-03-31 | 34,829.00 | 1,871.00 | 5,307.00 | 1,343.00 |
| 2015-12-31 | 35,481.00 | 1,930.00 | 5,387.00 | 1,368.00 |
| 2015-09-30 | 36,585.00 | 2,393.00 | 5,487.00 | 1,381.00 |
| 2015-06-30 | 37,889.00 | 2,538.00 | 5,672.00 | 1,420.00 |
| 2015-03-31 | 38,914.00 | 2,585.00 | 5,869.00 | 1,464.00 |
| 2014-12-31 | 39,830.00 | 2,570.00 | 6,067.00 | 1,499.00 |
| 2014-09-30 | 40,857.00 | 2,451.00 | 6,240.00 | 1,527.00 |
| 2014-06-30 | 41,569.00 | 2,567.00 | 6,228.00 | 1,521.00 |
| 2014-03-31 | 41,604.00 | 2,701.00 | 6,152.00 | 1,474.00 |
| 2013-12-31 | 41,848.00 | 2,824.00 | 6,094.00 | 1,470.00 |
| 2013-09-30 | 41,496.00 | 2,881.00 | 6,000.00 | 1,445.00 |
| 2013-06-30 | 40,706.00 | 2,803.00 | 5,917.00 | 1,452.00 |
| 2013-03-31 | 40,144.00 | 2,683.00 | 5,883.00 | 1,479.00 |
| 2012-12-31 | 39,336.00 | 2,700.00 | 5,756.00 | 1,464.00 |
| 2012-09-30 | 38,886.00 | 2,918.00 | 5,617.00 | 1,473.00 |
| 2012-06-30 | 38,478.00 | 2,946.00 | 5,541.00 | 1,447.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- ABB has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- ABB used its assets less efficiently than the Europe Electrical industry average last year based on Return on Assets.
- ABB's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess ABB's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
ABB has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is ABB's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up ABB's finances.
The net worth of a company is the difference between its assets and liabilities.
- ABB is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- ABB's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from ABB Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 15,102.00 | 9,636.00 | 3,567.00 |
| 2018-12-31 | 14,534.00 | 8,619.00 | 4,157.00 |
| 2018-09-30 | 14,649.00 | 9,519.00 | 3,557.00 |
| 2018-06-30 | 14,179.00 | 10,454.00 | 4,082.00 |
| 2018-03-31 | 13,944.00 | 7,772.00 | 4,902.00 |
| 2017-12-31 | 15,349.00 | 7,414.00 | 5,609.00 |
| 2017-09-30 | 14,753.00 | 7,892.00 | 4,648.00 |
| 2017-06-30 | 13,884.00 | 7,827.00 | 5,929.00 |
| 2017-03-31 | 14,935.00 | 6,934.00 | 6,788.00 |
| 2016-12-31 | 13,897.00 | 6,803.00 | 5,599.00 |
| 2016-09-30 | 13,913.00 | 7,721.00 | 5,365.00 |
| 2016-06-30 | 13,159.00 | 8,008.00 | 6,359.00 |
| 2016-03-31 | 15,367.00 | 7,692.00 | 6,065.00 |
| 2015-12-31 | 14,988.00 | 7,440.00 | 6,204.00 |
| 2015-09-30 | 15,225.00 | 7,557.00 | 5,234.00 |
| 2015-06-30 | 15,006.00 | 7,988.00 | 5,187.00 |
| 2015-03-31 | 16,282.00 | 7,709.00 | 6,155.00 |
| 2014-12-31 | 16,815.00 | 7,665.00 | 6,768.00 |
| 2014-09-30 | 17,654.00 | 7,871.00 | 6,216.00 |
| 2014-06-30 | 18,167.00 | 8,827.00 | 5,912.00 |
| 2014-03-31 | 19,706.00 | 9,050.00 | 7,267.00 |
| 2013-12-31 | 19,208.00 | 8,023.00 | 6,485.00 |
| 2013-09-30 | 18,084.00 | 8,123.00 | 4,676.00 |
| 2013-06-30 | 16,752.00 | 8,134.00 | 4,691.00 |
| 2013-03-31 | 17,741.00 | 9,118.00 | 7,052.00 |
| 2012-12-31 | 17,446.00 | 10,073.00 | 8,496.00 |
| 2012-09-30 | 17,135.00 | 9,078.00 | 5,446.00 |
| 2012-06-30 | 15,913.00 | 9,194.00 | 5,171.00 |
- ABB's level of debt (63.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (46% vs 63.8% today).
- Debt is well covered by operating cash flow (33.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 14.5x coverage).
Financial health checks
We assess ABB's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) ABB has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is ABB's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CHF2,000 of
ABB
shares you are expected to receive
CHF82
in your first year as a dividend.
Dividend Amount
- ABB's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.95%).
- ABB's dividend is above the markets top 25% of dividend payers in Switzerland (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 23 Analyst Estimates (S&P Global) | See Below |
| Europe Electrical Industry Average Dividend Yield | Market Cap Weighted Average of 41 Stocks | 3% |
| Switzerland Market Average Dividend Yield | Market Cap Weighted Average of 166 Stocks | 3.1% |
| Switzerland Minimum Threshold Dividend Yield | 10th Percentile | 1.3% |
| Switzerland Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Switzerland Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.86 | 1.00 |
| 2022-12-31 | 0.85 | 1.00 |
| 2021-12-31 | 0.87 | 14.00 |
| 2020-12-31 | 0.84 | 20.00 |
| 2019-12-31 | 0.82 | 18.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-02 | 0.783 | 4.093 |
| 2018-03-29 | 0.763 | 3.708 |
| 2017-04-13 | 0.753 | 3.146 |
| 2016-04-21 | 0.717 | 3.458 |
| 2015-02-05 | 0.699 | 3.806 |
| 2014-02-13 | 0.687 | 3.342 |
| 2013-02-14 | 0.694 | 3.151 |
| 2012-05-02 | 0.654 | 3.770 |
| 2011-03-17 | 0.642 | 3.044 |
| 2011-02-17 | 0.642 | 2.712 |
| 2010-03-19 | 0.493 | 2.422 |
| 2010-02-18 | 0.493 | 2.386 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, ABB has been paying a dividend for less than 10 years.
- Dividend payments have increased, but ABB only paid a dividend in the past 9 years.
Income/ dividend checks
We assess ABB's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can ABB afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) ABB has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $0 |
| AGE | 60 |
| TENURE AS CEO | 0.1 years |
CEO Bio
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 17, 2019 until April 2019 and served as its President until April 2019. Prior to this, Mr. Voser was CEO of Royal Dutch Shell from 2009 to 2013, and CFO and Executive Director from 2004 to 2009. Between 2002 and 2004, Mr. Voser was Chief Financial Officer of Asea Brown Boveri (ABB) in Switzerland. Between 1982 and 2002, he worked for the Royal Dutch / Shell Group, holding various assignments in Switzerland, the UK, Argentina and Chile. Mr. Voser served as Chairman of Catalyst Inc. from 2013 to December 31, 2018. He serves as a Director Catalyst Inc. He has been Chairman of Board for PSA International Pte Ltd since April 1, 2019. He served as serves as Deputy Chairman at PSA International Pte Ltd from July 01, 2018 to April 1, 2019. He serves as a Director at Roche Holding AG since March 01, 2011 and Independent Director since 2019. His Mandates on boards of important corporations, organizations and foundations or interest groups: Mr. Voser is a member of the Board of Directors of the Swiss Federal Auditor Oversight Authority. He held a variety of finance and business roles including chief financial officer of Oil Products. Mr. Voser returned to Shell in 2004 becoming a managing director of The Shell Transport and Trading Company, PLC. Mr. Voser is also active in a number of international and bilateral organizations. He served as Chief Executive Officer of Royal Dutch Shell plc from 2009 to 2013 and CFO from 2004 to 2009. He has wealth of experience in board positions in leading companies such as a Roche, IBM, Catalyst, Temasek Holdings and PSA International in Singapore. He was a member of the European Round Table of Industrialists and a former member of The Business Council. He has outside board experience as a Director of Roche Holding Limited and Temasek. Mr. Voser graduated in Business Administration from 1979 to 1982 from the University of Applied Sciences, Zurich.
CEO Compensation
- Insufficient data for Peter to compare compensation growth.
- Peter's remuneration is lower than average for companies of similar size in Switzerland.
Management Team Tenure
Average tenure and age of the ABB management team in years:
- The tenure for the ABB management team is about average.
Management Team
Peter Voser
CEO & Chairman
60
0.1 yrs
Timo Ihamuotila
Executive VP & CFO
$4M
52
2.1 yrs
Diane de Saint Victor
General Counsel
$3M
63
Jean-Christophe Deslarzes
Chief Human Resources Officer
$4M
55
5.5 yrs
Peter Terwiesch
President of Industrial Automation Division
$3M
52
2.3 yrs
Tarak Mehta
President of Electrification Products Division
$3M
52
0.1 yrs
Frank Duggan
President of Europe
$3M
59
4.3 yrs
Greg Scheu
President of Americas Region and Head of Group Service & Business Integration
$2M
57
5.5 yrs
Claudio Facchin
President of Power Grids Business
$3M
53
9.3 yrs
Chunyuan Gu
President of Asia
$3M
60
Board of Directors Tenure
Average tenure and age of the ABB board of directors in years:
- The tenure for the ABB board of directors is about average.
Board of Directors
Peter Voser
CEO & Chairman
60
4.1 yrs
Jacob Wallenberg
Vice Chairman
62
4.1 yrs
David Constable
Independent & Non-Executive Director
57
4.1 yrs
David Meline
Independent & Non-Executive Director
61
3.1 yrs
Matti Alahuhta
Independent & Non-Executive Director
66
5.1 yrs
Fred Curado
Independent & Non-Executive Director
57
3.1 yrs
Satish Pai
Independent & Non-Executive Director
57
3.1 yrs
Lars Förberg
Non-Executive Director
53
2.1 yrs
Jennifer Li
Director
50
1.2 yrs
Geraldine Matchett
Director
46
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CHF) | Value (CHF) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 08. May 19 | Buy | Gunnar Brock | Individual | 06. May 19 | 06. May 19 | 3,311 | CHF19.07 | CHF63,141 | ||
| 08. May 19 | Buy | Geraldine Matchett | Individual | 06. May 19 | 06. May 19 | 4,326 | CHF19.07 | CHF82,497 | ||
| 08. May 19 | Buy | Xin-Zhe Li | Individual | 06. May 19 | 06. May 19 | 2,973 | CHF19.07 | CHF56,695 | ||
| 08. May 19 | Buy | David Constable | Individual | 06. May 19 | 06. May 19 | 3,511 | CHF19.07 | CHF66,955 | ||
| 08. May 19 | Buy | David Meline | Individual | 06. May 19 | 06. May 19 | 4,013 | CHF19.07 | CHF76,528 | ||
| 08. May 19 | Buy | Lars Förberg | Individual | 06. May 19 | 06. May 19 | 7,970 | CHF19.07 | CHF151,988 | ||
| 08. May 19 | Buy | Satish Pai | Individual | 06. May 19 | 06. May 19 | 3,066 | CHF19.07 | CHF58,469 | ||
| 08. May 19 | Buy | Peter Voser | Individual | 06. May 19 | 06. May 19 | 29,943 | CHF19.07 | CHF571,013 | ||
| 08. May 19 | Buy | Jacob Wallenberg | Individual | 06. May 19 | 06. May 19 | 4,515 | CHF19.07 | CHF86,101 | ||
| 08. May 19 | Buy | Matti Alahuhta | Individual | 06. May 19 | 06. May 19 | 3,210 | CHF19.07 | CHF61,215 | ||
| 08. May 19 | Buy | Frederico C. Pinheiro Curado | Individual | 06. May 19 | 06. May 19 | 2,973 | CHF19.07 | CHF56,695 | ||
| 03. Apr 19 | Buy | Timo Ihamuotila | Individual | 02. Apr 19 | 02. Apr 19 | 42,572 | CHF19.05 | CHF810,997 | ||
| 05. Dec 18 | Buy | Jean-Christophe Deslarzes | Individual | 15. Nov 18 | 15. Nov 18 | 46,073 | CHF19.67 | CHF906,256 | ||
| 07. Jun 18 | Buy | Chunyuan Gu | Individual | 05. Jun 18 | 05. Jun 18 | 15,152 | CHF22.73 | CHF344,405 | ||
| 07. Jun 18 | Buy | Francis Duggan | Individual | 05. Jun 18 | 05. Jun 18 | 38,365 | CHF22.73 | CHF872,036 | ||
| 07. Jun 18 | Buy | Tarak Mehta | Individual | 05. Jun 18 | 05. Jun 18 | 24,106 | CHF22.73 | CHF547,929 | ||
| 07. Jun 18 | Buy | Claudio Facchin | Individual | 05. Jun 18 | 05. Jun 18 | 35,434 | CHF22.73 | CHF805,415 | ||
| 07. Jun 18 | Buy | Diane de Saint Victor | Individual | 05. Jun 18 | 05. Jun 18 | 35,650 | CHF22.73 | CHF810,325 | ||
| 07. Jun 18 | Buy | Jean-Christophe Deslarzes | Individual | 05. Jun 18 | 05. Jun 18 | 29,763 | CHF22.73 | CHF676,513 | ||
| 07. Jun 18 | Buy | Greg Scheu | Individual | 05. Jun 18 | 05. Jun 18 | 26,569 | CHF22.79 | CHF605,616 | ||
| 07. Jun 18 | Buy | Ulrich Spiesshofer | Individual | 05. Jun 18 | 05. Jun 18 | 99,324 | CHF22.73 | CHF2,257,635 | ||
| 07. Jun 18 | Buy | Peter Terwiesch | Individual | 05. Jun 18 | 05. Jun 18 | 29,542 | CHF22.73 | CHF671,490 | ||
Management checks
We assess ABB's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) ABB has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is ABB Ltd (VTX:ABBN) Expensive For A Reason? A Look At Its Intrinsic Value
by projecting its future cash flows and then discounting them to today's value. … I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleWhat Should Investors Know About The Future Of ABB Ltd's (VTX:ABBN)?
Based on ABB Ltd's (VTX:ABBN) earnings update on 31 March 2019, … as a 46% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of -16%.
Simply Wall St - – Full articleHow Do Analysts See ABB Ltd (VTX:ABBN) Performing In The Next Couple Of Years?
The most recent earnings release ABB Ltd's (VTX:ABBN) announced in December 2018a … showed … company
Simply Wall St - – Full articleLooking At ABB Ltd (VTX:ABBN) From All Angles
Upon building up an investment case for a stock, we should look at various aspects. … that has been able to sustain great financial health over the past … In the following section, I expand a bit more on these key aspects
Simply Wall St - – Full articleHow Much Of ABB Ltd (VTX:ABBN) Do Institutions Own?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … We'd expect to see both institutions and retail investors owning a portion of the company.
Simply Wall St - – Full articleWhy ABB Ltd's (VTX:ABBN) High P/E Ratio Isn't Necessarily A Bad Thing
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 28.24 = $19.21 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.68
Simply Wall St - – Full articleIs There More To ABB Ltd (VTX:ABBN) Than Its 14% Returns On Capital?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleAt CHF19.18, Is ABB Ltd (VTX:ABBN) Worth Looking At Closely?
saw significant share price movement during recent months on the SWX, rising to highs of CHF20.56 and falling to the lows of CHF18.18. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at ABB’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleDoes ABB Ltd's (VTX:ABBN) CEO Salary Reflect Performance?
This analysis aims first to contrast CEO compensation with other large companies. … Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60) … How Does Uli Spiesshofer's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleDividend Hunters Should Consider ABB Ltd (VTX:ABBN), With A 4.0% Yield
Over the past 10 years ABB Ltd (VTX:ABBN) has grown its dividend payouts from $0.42 to $0.77. … What Is A Dividend Rock Star. … stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future
Simply Wall St - – Full articleCompany Info
Description
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 Products segment provides electric vehicle charging infrastructure, solar power solutions, modular substation packages, distribution automation products, switchboard and panel boards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. This segment serves building, data center, rail, wind and solar, distribution utilities, food and beverage, marine, e-mobility, and oil and gas industries. The company’s Robotics and Motion segment offers robotics, motors, generators, drives, wind converters, components and systems for railways and related services, and digital solutions for applications in industries, transportation and infrastructure, and utilities. This segment serves machinery manufacturers, process industries, hybrid and batch manufacturers, transportation equipment manufacturers, discrete manufacturing companies, utilities, and customers in the automotive industry. Its Industrial Automation segment provides process and discrete control solutions, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation and solutions, electric ship propulsion systems, machine and factory automation solutions, and turbochargers, as well as remote monitoring, preventive maintenance, and cybersecurity services. This segment serves companies in the oil and gas, minerals and mining, metals, pulp and paper, chemicals and pharmaceuticals, food and beverage, power generation, and marine industries. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.
Details
| Name: | ABB Ltd |
| ABBN | |
| Exchange: | SWX |
| Founded: | 1883 |
| CHF41,318,550,565 | |
| 2,132,020,153 | |
| Website: | http://www.new.abb.com |
| Address: |
ABB Ltd Affolternstrasse 44, Zurich, Zurich, 8050, Switzerland |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SWX | ABBN | Common Stock | SIX Swiss Exchange | CH | CHF | 22. Jun 1999 | |
| OTCPK | ABLZ.F | Common Stock | Pink Sheets LLC | US | USD | 22. Jun 1999 | |
| DB | ABJ | Common Stock | Deutsche Boerse AG | DE | EUR | 22. Jun 1999 | |
| XTRA | ABJ | Common Stock | XETRA Trading Platform | DE | EUR | 22. Jun 1999 | |
| LSE | 0NX2 | Common Stock | London Stock Exchange | GB | SEK | 22. Jun 1999 | |
| OM | ABB | Common Stock | OMX Nordic Exchange Stockholm | SE | SEK | 22. Jun 1999 | |
| BATS-CHIXE | ABBS | Common Stock | BATS 'Chi-X Europe' | GB | SEK | 22. Jun 1999 | |
| BATS-CHIXE | ABBNZ | Common Stock | BATS 'Chi-X Europe' | GB | CHF | 22. Jun 1999 | |
| NYSE | ABB | ADR EACH REPR 1 ORD CHF1.03 | New York Stock Exchange | US | USD | 06. Apr 2001 | |
| DB | ABJA | ADR EACH REPR 1 ORD CHF1.03 | Deutsche Boerse AG | DE | EUR | 06. Apr 2001 | |
| BMV | ABB N | ADR EACH REPR 1 ORD CHF1.03 | Bolsa Mexicana de Valores | MX | MXN | 06. Apr 2001 |
Number of employees
Current staff
Industry
| Electrical Components and Equipment | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/18 20:54 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/08 |
| Last earnings filing: | 2019/04/17 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
