SWX:ABBN

Stock Analysis Report

Executive Summary

ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

ABBN

2.2%

CH Electrical

0.4%

CH Market


1 Year Return

-11.8%

ABBN

-12.0%

CH Electrical

11.4%

CH Market

Return vs Industry: ABBN matched the Swiss Electrical industry which returned -12% over the past year.

Return vs Market: ABBN underperformed the Swiss Market which returned 11.4% over the past year.


Shareholder returns

ABBNIndustryMarket
7 Day2.2%2.2%0.4%
30 Day-8.8%-8.5%-0.3%
90 Day-1.6%-2.5%1.8%
1 Year-8.2%-11.8%-8.6%-12.0%17.4%11.4%
3 Year-6.7%-16.4%-6.4%-15.9%34.9%21.3%
5 Year14.5%-4.7%13.5%-5.0%42.2%19.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ABBN (CHF18.48) is trading below our estimate of fair value (CHF19.76)

Significantly Undervalued: ABBN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ABBN is poor value based on its PE Ratio (44.7x) compared to the Electrical industry average (19.3x).

PE vs Market: ABBN is poor value based on its PE Ratio (44.7x) compared to the Swiss market (18.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ABBN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ABBN is overvalued based on its PB Ratio (3.1x) compared to the CH Electrical industry average (2x).


Next Steps

Future Growth

How is ABB forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBN's forecast earnings growth (32.9% per year) is above the savings rate (3.3%).

Earnings vs Market: ABBN's earnings (32.9% per year) are forecast to grow faster than the Swiss market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ABBN's revenue (1.4% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: ABBN's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ABBN's Return on Equity is forecast to be high in 3 years time (24.2%)


Next Steps

Past Performance

How has ABB performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABBN's earnings have declined by -17.6% per year over the past 5 years.

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

Earnings vs Industry: ABBN had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Electrical industry average (0.7%).


Return on Equity

High ROE: ABBN's Return on Equity (7.5%) is considered low.


Return on Assets

ROA vs Industry: ABBN's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: ABBN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ABB's financial position?


Financial Position Analysis

Short Term Liabilities: ABBN's short term assets ($25.3B) exceeds its short term liabilities ($19.2B)

Long Term Liabilities: ABBN's short term assets (25.3B) exceeds its long term liabilities (12.9B)


Debt to Equity History and Analysis

Debt Level: ABBN's debt to equity ratio (75.9%) is considered high

Reducing Debt: ABBN's debt to equity ratio has increased from 48.5% to 75.9% over the past 5 years.

Debt Coverage: ABBN's debt is well covered by operating cash flow (21.4%).

Interest Coverage: ABBN's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet

Inventory Level: ABBN has a high level of physical assets or inventory.

Debt Coverage by Assets: ABBN's debt is covered by short term assets (assets are 2.491970x debt).


Next Steps

Dividend

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

4.22%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.9%markettop25%3.7%industryaverage2.9%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABBN's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Swiss market (1.9%).

High Dividend: ABBN's dividend (4.22%) is in the top 25% of dividend payers in the Swiss market (3.75%)

Stable Dividend: ABBN's dividends per share have been stable in the past 10 years.

Growing Dividend: ABBN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (196.1%), ABBN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABBN's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Peter Voser (61yo)

0.5yrs

Tenure

0

Mr. Peter Robert Voser has been Chief Executive Officer of ABB Ltd. since April 2019 and has been its Chairman since April 2015. Mr. Voser served as Interim Chief Executive Officer of ABB Ltd. since April  ...


Management Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

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


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: ABBN's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: ABBN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$12,37930 Aug 19
Sami Atiya
EntityIndividual
Role
Senior Key Executive
President of Robotics & Discrete Automation Business
Shares690
Max PriceUS$17.94
BuyUS$554,48011 Jun 19
Peter Terwiesch
EntityIndividual
Role
Senior Key Executive
President of Industrial Automation Division
Shares29,431
Max PriceUS$18.84
BuyUS$460,35511 Jun 19
Sami Atiya
EntityIndividual
Role
Senior Key Executive
President of Robotics & Discrete Automation Business
Shares24,435
Max PriceUS$18.84
BuyUS$588,41111 Jun 19
Claudio Facchin
EntityIndividual
Role
Senior Key Executive
President of Power Grids Business
Shares31,232
Max PriceUS$18.84
BuyUS$846,01011 Jun 19
Francis Duggan
EntityIndividual
Role
Senior Key Executive
President of Europe
Shares44,905
Max PriceUS$18.84
BuyUS$317,54811 Jun 19
Chunyuan Gu
EntityIndividual
Role
Senior Key Executive
President of Asia
Shares16,855
Max PriceUS$18.84
BuyUS$556,55211 Jun 19
Tarak Mehta
EntityIndividual
Role
Senior Key Executive
President of Electrification Products Division
Shares29,541
Max PriceUS$18.84
BuyUS$824,57011 Jun 19
Diane de Saint Victor
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares43,767
Max PriceUS$18.84
BuyUS$527,19011 Jun 19
Greg Scheu
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares27,935
Max PriceUS$18.87
BuyUS$103,723,71922 May 19
Investor AB (publ)
EntityCompany
Shares5,400,000
Max PriceUS$19.40
BuyUS$58,46908 May 19
Satish Pai
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares3,066
Max PriceUS$19.07
BuyUS$61,21508 May 19
Matti Alahuhta
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares3,210
Max PriceUS$19.07
BuyUS$56,69508 May 19
Frederico C. Pinheiro Curado
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares2,973
Max PriceUS$19.07
BuyUS$571,01308 May 19
Peter Voser
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman
Shares29,943
Max PriceUS$19.07
BuyUS$56,69508 May 19
Xin-Zhe Li
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,973
Max PriceUS$19.07
BuyUS$66,95508 May 19
David Constable
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares3,511
Max PriceUS$19.07
BuyUS$82,49708 May 19
Geraldine Matchett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,326
Max PriceUS$19.07
BuyUS$151,98808 May 19
Lars Förberg
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,970
Max PriceUS$19.07
BuyUS$63,14108 May 19
Gunnar Brock
EntityIndividual
Shares3,311
Max PriceUS$19.07
BuyUS$76,52808 May 19
David Meline
EntityIndividual
Role
Member of the Board of Directors
Independent & Non-Executive Director
Shares4,013
Max PriceUS$19.07
BuyUS$86,10108 May 19
Jacob Wallenberg
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman
Shares4,515
Max PriceUS$19.07
BuyUS$810,99703 Apr 19
Timo Ihamuotila
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares42,572
Max PriceUS$19.05
BuyUS$906,25605 Dec 18
Jean-Christophe Deslarzes
EntityIndividual
Shares46,073
Max PriceUS$19.67

Ownership Breakdown


Management Team

  • Peter Voser (61yo)

    CEO & Chairman

    • Tenure: 0.5yrs
  • Timo Ihamuotila (53yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$3.54m
  • Peter Terwiesch (53yo)

    President of Industrial Automation Division

    • Tenure: 2.8yrs
    • Compensation: US$3.14m
  • Greg Scheu (58yo)

    Executive Officer

    • Tenure: 5.9yrs
    • Compensation: US$2.49m
  • Diane de Saint Victor (64yo)

    General Counsel

    • Tenure: 0yrs
    • Compensation: US$3.48m
  • Claudio Facchin (54yo)

    President of Power Grids Business

    • Tenure: 9.8yrs
    • Compensation: US$2.74m
  • Tarak Mehta (53yo)

    President of Electrification Products Division

    • Tenure: 0.5yrs
    • Compensation: US$3.21m
  • Frank Duggan (60yo)

    President of Europe

    • Tenure: 4.8yrs
    • Compensation: US$2.96m
  • Chunyuan Gu (61yo)

    President of Asia

    • Tenure: 0yrs
    • Compensation: US$2.92m
  • Sami Atiya (55yo)

    President of Robotics & Discrete Automation Business

    • Tenure: 0yrs
    • Compensation: US$2.68m

Board Members

  • Fred Curado (58yo)

    Independent & Non-Executive Director

    • Tenure: 3.5yrs
  • Matti Alahuhta (67yo)

    Independent & Non-Executive Director

    • Tenure: 5.5yrs
  • Jacob Wallenberg (63yo)

    Independent Vice Chairman

    • Tenure: 4.5yrs
  • Peter Voser (61yo)

    CEO & Chairman

    • Tenure: 0.5yrs
  • Satish Pai (58yo)

    Independent & Non-Executive Director

    • Tenure: 3.5yrs
  • Lars Förberg (54yo)

    Non-Executive Director

    • Tenure: 2.5yrs
  • David Meline (62yo)

    Independent & Non-Executive Director

    • Tenure: 3.5yrs
  • David Constable (58yo)

    Independent & Non-Executive Director

    • Tenure: 4.5yrs
  • Jennifer Li (51yo)

    Independent Director

    • Tenure: 1.6yrs
  • Geraldine Matchett (47yo)

    Independent Director

    • Tenure: 1.6yrs

Company Information

ABB Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ABB Ltd
  • Ticker: ABBN
  • Exchange: SWX
  • Founded: 1883
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: CHF39.404b
  • Shares outstanding: 2.13b
  • Website: https://www.new.abb.com

Number of Employees


Location

  • ABB Ltd
  • Affolternstrasse 44
  • Zurich
  • Zurich
  • 8050
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABLZ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 1999
ABBNSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1999
ABBOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKJun 1999
ABJDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1999
0NX2LSE (London Stock Exchange)YesCommon StockGBSEKJun 1999
ABJXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1999
ABBNYSE (New York Stock Exchange)ADR EACH REPR 1 ORD CHF1.03USUSDApr 2001
ABJADB (Deutsche Boerse AG)ADR EACH REPR 1 ORD CHF1.03DEEURApr 2001
ABB NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 ORD CHF1.03MXMXNApr 2001

Biography

ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. Its Electrification ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:42
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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