ABB (SWX:ABBN) - Share price, News & Analysis

Q: What is the Fair Price of ABBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ABBN (CHF25.8) is trading below our estimate of [[fair value]] (CHF36.2)

ABBN fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

ABBN Stock Overview

Rewards

Trading at 28.7% below our estimate of its fair value

Earnings are forecast to grow 9.03% per year

Earnings grew by 389.7% over the past year

Trading at good value vs. industry average Price-To-Earnings ratio

Trading below our calculated fair Price-To-Earnings ratio

Analysts in good agreement that stock price will rise by 25.3%

Risk Analysis

Dividend of 3.11% is not well covered

Large one-off items impacting financial results

ABB Competitors

Huber+Suhner

SWX:HUBN

CHF1.5b

Phoenix Mecano

SWX:PM

CHF291.0m

Von Roll Holding

SWX:ROL

CHF265.6m

Schindler Holding

SWX:SCHN

CHF16.3b

Price History & Performance

Summary of all time highs, changes and price drops for ABB
Historical stock prices
Current Share Price	CHF25.80
52 Week High	CHF35.79
52 Week Low	CHF24.85
Beta	1.1
1 Month Change	-5.87%
3 Month Change	0.90%
1 Year Change	-15.71%
3 Year Change	42.78%
5 Year Change	5.52%
Change since IPO	-28.33%

Recent News & Updates

Aug 07

At CHF28.41, Is ABB Ltd (VTX:ABBN) Worth Looking At Closely?

Let's talk about the popular ABB Ltd ( VTX:ABBN ). The company's shares saw a double-digit share price rise of over 10...

Jul 24

Should You Be Adding ABB (VTX:ABBN) To Your Watchlist Today?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

	ABBN	CH Electrical	CH Market
7D	2.4%	2.3%	1.1%
1Y	-15.7%	-15.3%	-15.3%

Return vs Industry: ABBN matched the Swiss Electrical industry which returned -15.3% over the past year.

Return vs Market: ABBN matched the Swiss Market which returned -15.2% over the past year.

Price Volatility

Is ABBN's price volatile compared to industry and market?
ABBN volatility
ABBN Average Weekly Movement	3.4%
Electrical Industry Average Movement	3.7%
Market Average Movement	4.4%
10% most volatile stocks in CH Market	7.7%
10% least volatile stocks in CH Market	2.2%

Stable Share Price: ABBN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABBN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1883	106,380	Bjorn Klas Rosengren	https://global.abb/group/en

ABB Ltd engages in manufacture and sale of electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboard and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company’s Robotics & Discrete Automation segment offers industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services.

ABB Fundamentals Summary

How do ABB's earnings and revenue compare to its market cap?
ABBN fundamental statistics
Market Cap	CHF48.84b
Earnings (TTM)	CHF4.26b
Revenue (TTM)	CHF28.28b

11.5x

P/E Ratio

1.7x

P/S Ratio

Is ABBN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABBN income statement (TTM)
Revenue	US$28.81b
Cost of Revenue	US$19.49b
Gross Profit	US$9.32b
Other Expenses	US$4.98b
Earnings	US$4.34b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)	2.29
Gross Margin	32.34%
Net Profit Margin	15.06%
Debt/Equity Ratio	63.3%

How did ABBN perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

41%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ABBN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABBN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ABBN. This is calculated by dividing ABBN's market cap by their current preferred multiple.
What is ABBN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$49.77b

ABBN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	12.8x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does ABBN's PE Ratio compare to its peers?

ABBN PE Ratio vs Peers

The above table shows the PE ratio for ABBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.2x
HUBN Huber+Suhner	17.2x	2.6%	CHF1.5b
PM Phoenix Mecano	10.7x	16.1%	CHF291.0m
ROL Von Roll Holding	25x	n/a	CHF265.6m
SCHN Schindler Holding	24.1x	16.3%	CHF16.3b
ABBN ABB	11.5x	9.0%	CHF48.8b

Price-To-Earnings vs Peers: ABBN is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does ABBN's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Earnings vs Industry: ABBN is good value based on its Price-To-Earnings Ratio (11.5x) compared to the European Electrical industry average (18.8x)

Price to Earnings Ratio vs Fair Ratio

What is ABBN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	34.6x

Price-To-Earnings vs Fair Ratio: ABBN is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (34.6x).

Share Price vs Fair Value

What is the Fair Price of ABBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABBN (CHF25.8) is trading below our estimate of fair value (CHF36.2)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is ABB forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBN's forecast earnings growth (9% per year) is above the savings rate (-0.2%).

Earnings vs Market: ABBN's earnings (9% per year) are forecast to grow faster than the Swiss market (9% per year).

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

Revenue vs Market: ABBN's revenue (5.1% per year) is forecast to grow faster than the Swiss market (4.4% per year).

High Growth Revenue: ABBN's revenue (5.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ABBN's Return on Equity is forecast to be high in 3 years time (22.2%)

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Past Performance

How has ABB performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABBN has a large one-off gain of $1.9B impacting its June 30 2022 financial results.

Growing Profit Margin: ABBN's current net profit margins (15.1%) are higher than last year (3.2%).

Past Earnings Growth Analysis

Earnings Trend: ABBN's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: ABBN's earnings growth over the past year (389.7%) exceeds its 5-year average (21.4% per year).

Earnings vs Industry: ABBN earnings growth over the past year (389.7%) exceeded the Electrical industry 20.1%.

Return on Equity

High ROE: ABBN's Return on Equity (35%) is considered high.

Discover strong past performing companies

Financial Health

How is ABB's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABBN's short term assets ($17.8B) exceed its short term liabilities ($16.7B).

Long Term Liabilities: ABBN's short term assets ($17.8B) exceed its long term liabilities ($9.5B).

Debt to Equity History and Analysis

Debt Level: ABBN's net debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: ABBN's debt to equity ratio has increased from 55.3% to 63.3% over the past 5 years.

Debt Coverage: ABBN's debt is well covered by operating cash flow (24.1%).

Interest Coverage: ABBN earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.11%

Current Dividend Yield

Dividend Yield vs Market

ABB Dividend Yield vs Market

How does ABB dividend yield compare to the market?
Segment	Dividend Yield
Company (ABB)	3.1%
Market Bottom 25% (CH)	2.2%
Market Top 25% (CH)	4.3%
Industry Average (Electrical)	2.4%
Analyst forecast in 3 Years (ABB)	3.6%

Notable Dividend: ABBN's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Swiss market (2.15%).

High Dividend: ABBN's dividend (3.11%) is low compared to the top 25% of dividend payers in the Swiss market (4.32%).

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.5%), ABBN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (144.8%), ABBN's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure

CEO

Bjorn Klas Rosengren (63 yo)

2.58yrs

Tenure

US$9,047,301

Compensation

Mr. Bjorn Klas Otto Rosengren, M.Sc. (Tech.), has been Chief Executive Officer of ABB Ltd since March 1, 2020. He served as an Executive Officer at ABB Ltd since February 1, 2020 until March 1, 2020. He se...

CEO Compensation Analysis

Bjorn Klas Rosengren's Compensation vs ABB Earnings

How has Bjorn Klas Rosengren's remuneration changed compared to ABB's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	US$4b
Mar 31 2022	n/a	n/a	US$5b
Dec 31 2021	US$9m	US$2m	US$5b
Sep 30 2021	n/a	n/a	US$2b
Jun 30 2021	n/a	n/a	US$886m
Mar 31 2021	n/a	n/a	US$494m
Dec 31 2020	US$10m	US$2m	US$286m

Compensation vs Market: Bjorn Klas's total compensation ($USD9.05M) is above average for companies of similar size in the Swiss market ($USD6.86M).

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

Leadership Team

Experienced Management: ABBN's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: ABBN's board of directors are considered experienced (6.5 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

SWX:ABBN Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
16 May 22	BuyCHF1,092,596	Timo Ihamuotila	Individual	38,594	CHF28.31
16 May 22	BuyCHF920,075	Peter Terwiesch	Individual	32,500	CHF28.31
16 May 22	BuyCHF989,066	Tarak Mehta	Individual	34,937	CHF28.31
16 May 22	BuyCHF1,104,118	Sami Atiya	Individual	39,001	CHF28.31
16 May 22	BuyCHF1,238,619	Morten Wierod	Individual	43,752	CHF28.31
01 Feb 22	BuyCHF2,718,948	Bjorn Klas Rosengren	Individual	84,597	CHF32.14
29 Nov 21	BuyCHF830,632	Maria Varsellona	Individual	26,006	CHF31.94
22 Oct 21	BuyCHF151,250	Bjorn Klas Rosengren	Individual	5,000	CHF30.25

Ownership Breakdown

What is the ownership structure of ABBN?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	2,134,150	0.1%
Hedge Funds	105,988,662	5.6%
VC/PE Firms	265,385,142	14.0%
Institutions	751,569,319	39.7%
General Public	768,021,187	40.6%

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

Top Shareholders

Top 25 shareholders own 47.61% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
14.02%	Investor AB (publ)	265,385,142	$6.8b	0%	10.59%
5.6%	Cevian Capital AB	105,988,662	$2.7b	0%	25.78%
3.68%	Capital Research and Management Company	69,725,960	$1.8b	-14.45%	0.13%
3.48%	BlackRock, Inc.	65,801,163	$1.7b	-19.73%	0.04%
3.47%	Artisan Partners Limited Partnership	65,721,454	$1.7b	0%	1.77%
3.21%	The Vanguard Group, Inc.	60,689,785	$1.6b	1.5%	0.04%
2.14%	Norges Bank Investment Management	40,514,056	$1.0b	0%	0.15%
2.02%	UBS Asset Management	38,259,114	$987.1m	0.79%	0.2%
1.55%	Credit Suisse Asset Management (Switzerland)	29,252,878	$754.7m	-2.11%	0.73%
1.18%	Fisher Asset Management, LLC	22,425,254	$578.6m	4.3%	0.44%
1%	CPP Investments	18,903,000	$487.7m	0%	0.5%
0.76%	Lazard Asset Management LLC	14,352,308	$370.3m	-0.04%	0.38%
0.57%	Handelsbanken Asset Management	10,702,116	$276.1m	2.64%	0.6%
0.54%	Nordea Investment Management AB	10,301,991	$265.8m	-16.48%	0.24%
0.48%	Pictet Asset Management Limited	9,035,929	$233.1m	-1.78%	0.22%
0.47%	Swedbank Robur Fonder AB	8,938,837	$230.6m	69.01%	0.36%
0.46%	Geode Capital Management, LLC	8,693,983	$224.3m	0.63%	0.03%
0.45%	Zürcher Kantonalbank, Investment Arm	8,577,073	$221.3m	0%	2.2%
0.43%	Vontobel Asset Management AG	8,099,508	$209.0m	0%	1.98%
0.43%	Carnegie Fonder AB	8,045,991	$207.6m	0%	4.91%
0.39%	Dimensional Fund Advisors LP	7,385,314	$190.5m	-2.08%	0.05%
0.37%	T. Rowe Price Group, Inc.	7,071,161	$182.4m	-0.14%	0.02%
0.31%	Northern Trust Global Investments	5,944,872	$153.4m	-0.05%	0.03%
0.31%	RobecoSAM AG	5,825,890	$150.3m	-9.96%	1.48%
0.3%	AMF Fonder AB	5,593,846	$144.3m	0%	0.51%

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
0NX2	LSE (London Stock Exchange)	Yes	Common Stock	GB	CHF	Jun 1999
ABBS	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	Common Stock	GB	SEK	Jun 1999
ABBNZ	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	Common Stock	GB	CHF	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
0A6W	LSE (London Stock Exchange)		ADR EACH REPR 1 ORD CHF1.03	GB	USD	Apr 2001
ABBNE	SWX (SIX Swiss Exchange)		CHF0.12 (REGD)(2ND BUYBACK)	CH	CHF	Jul 2020
ABB U	OM (OMX Nordic Exchange Stockholm)		SHS	SE	SEK	Mar 2022
A1BB34	BOVESPA (Bolsa de Valores de Sao Paulo)		BDR EACH 4 REPR 1 ADR	BR	BRL	Sep 2022

Data	Last Updated (UTC time)
Company Analysis	2022/10/02 00:00
End of Day Share Price	2022/09/30 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31