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ABB

SWX:ABBN
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABBN
SWX
CHF41B
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

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.


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ABBN Share Price and Events
7 Day Returns
0.2%
SWX:ABBN
0.1%
CH Electrical
1.7%
CH Market
1 Year Returns
-20.4%
SWX:ABBN
-19.5%
CH Electrical
1.5%
CH Market
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.
Price Volatility
ABBN
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ABB.

SWX:ABBN Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for SWX:ABBN
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.

SWX:ABBN DCF 1st Stage: Next 10 year cash flow forecast
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
SWX:ABBN DCF 2nd Stage: Terminal Value
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
SWX:ABBN Total Equity Value
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
SWX:ABBN Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
SWX:ABBN PE (Price to Earnings) Ratio Data Sources
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.

SWX:ABBN PE (Price to Earnings) Ratio Calculation
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?
Raw Data
SWX:ABBN PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

SWX:ABBN PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
SWX:ABBN PB (Price to Book) Ratio Data Sources
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
SWX:ABBN PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess ABB's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
13.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ABB expected to grow at an attractive rate?
  • 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
Raw Data
SWX:ABBN Future Growth Rates Data Sources
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
Raw Data
SWX:ABBN Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:ABBN Future Estimates Data
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
SWX:ABBN Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • ABB's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
  • ABB's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:ABBN 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.

SWX:ABBN Future Estimates Data
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
SWX:ABBN Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ABB is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ABB's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare ABB's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
ABB's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ABB Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:ABBN Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess ABB's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of ABB's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from ABB Company Filings, last reported 1 month ago.

SWX:ABBN Past Debt and Equity Data
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).
X
Financial health checks
We assess ABB's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ABB has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
4.08%
Current annual income from ABB dividends. Estimated to be 4.39% next year.
If you bought CHF2,000 of ABB shares you are expected to receive CHF82 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
SWX:ABBN Annualized Past and Future Dividends
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.

SWX:ABBN Future Dividends Estimate Data
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
SWX:ABBN Past Annualized Dividends Data
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.
Current Payout to shareholders
What portion of ABB's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess ABB's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of ABB's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Voser
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:

3.3
Average Tenure
56
Average Age
  • The tenure for the ABB management team is about average.
Management Team

Peter Voser

TITLE
CEO & Chairman
AGE
60
TENURE
0.1 yrs

Timo Ihamuotila

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
52
TENURE
2.1 yrs

Diane de Saint Victor

TITLE
General Counsel
COMPENSATION
$3M
AGE
63

Jean-Christophe Deslarzes

TITLE
Chief Human Resources Officer
COMPENSATION
$4M
AGE
55
TENURE
5.5 yrs

Peter Terwiesch

TITLE
President of Industrial Automation Division
COMPENSATION
$3M
AGE
52
TENURE
2.3 yrs

Tarak Mehta

TITLE
President of Electrification Products Division
COMPENSATION
$3M
AGE
52
TENURE
0.1 yrs

Frank Duggan

TITLE
President of Europe
COMPENSATION
$3M
AGE
59
TENURE
4.3 yrs

Greg Scheu

TITLE
President of Americas Region and Head of Group Service & Business Integration
COMPENSATION
$2M
AGE
57
TENURE
5.5 yrs

Claudio Facchin

TITLE
President of Power Grids Business
COMPENSATION
$3M
AGE
53
TENURE
9.3 yrs

Chunyuan Gu

TITLE
President of Asia
COMPENSATION
$3M
AGE
60
Board of Directors Tenure

Average tenure and age of the ABB board of directors in years:

3.1
Average Tenure
57
Average Age
  • The tenure for the ABB board of directors is about average.
Board of Directors

Peter Voser

TITLE
CEO & Chairman
AGE
60
TENURE
4.1 yrs

Jacob Wallenberg

TITLE
Vice Chairman
AGE
62
TENURE
4.1 yrs

David Constable

TITLE
Independent & Non-Executive Director
AGE
57
TENURE
4.1 yrs

David Meline

TITLE
Independent & Non-Executive Director
AGE
61
TENURE
3.1 yrs

Matti Alahuhta

TITLE
Independent & Non-Executive Director
AGE
66
TENURE
5.1 yrs

Fred Curado

TITLE
Independent & Non-Executive Director
AGE
57
TENURE
3.1 yrs

Satish Pai

TITLE
Independent & Non-Executive Director
AGE
57
TENURE
3.1 yrs

Lars Förberg

TITLE
Non-Executive Director
AGE
53
TENURE
2.1 yrs

Jennifer Li

TITLE
Director
AGE
50
TENURE
1.2 yrs

Geraldine Matchett

TITLE
Director
AGE
46
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ABB insiders in the past 3 months.
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
X
Management checks
We assess ABB's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

What 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 -

How 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 -

Looking 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 -

How 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 -

Why 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 -

Is 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 -

At 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 -

Does 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 -

Dividend 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 -

Company 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
Staff numbers
147,000
ABB employees.
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.