Market Cap
CHF47.5b
Last Updated
2020/07/05 20:46 UTC
Data Sources
Company Financials +
Executive Summary
ABB Ltd manufactures and sells electrification, industrial automation, motion, and robotics and discrete automation products for customers in utilities, industry and transport, and infrastructure worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -23.5% per year for the next 3 years
+ 2 more risks
Snowflake Analysis
Average dividend payer with mediocre 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
Stable Share Price: ABBN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.9%
ABBN
6.6%
CH Electrical
0.8%
CH Market
1 Year Return
16.3%
ABBN
14.3%
CH Electrical
0.6%
CH Market
Return vs Industry: ABBN exceeded the Swiss Electrical industry which returned 14.3% over the past year.
Return vs Market: ABBN exceeded the Swiss Market which returned 0.6% over the past year.
Shareholder returns
| ABBN | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.9% | 6.6% | 0.8% |
| 30 Day | 5.9% | 5.7% | -0.5% |
| 90 Day | 30.4% | 29.7% | 7.1% |
| 1 Year | 21.8%16.3% | 19.5%14.3% | 4.0%0.6% |
| 3 Year | 6.1%-6.0% | 5.2%-6.6% | 21.0%8.6% |
| 5 Year | 40.7%14.9% | 40.7%15.2% | 31.3%9.2% |
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
1 day ago | Simply Wall St
Should You Use ABB's (VTX:ABBN) Statutory Earnings To Analyse It?2 weeks ago | Simply Wall St
Timo Ihamuotila Is The Executive VP & CFO of ABB Ltd (VTX:ABBN) And They Just Picked Up 21% More Shares3 weeks ago | Simply Wall St
ABB (VTX:ABBN) Has A Pretty Healthy Balance SheetValuation
Is ABB undervalued compared to its fair value and its price relative to the market?
53.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ABBN (CHF22.27) is trading above our estimate of fair value (CHF16.4)
Significantly Below Fair Value: ABBN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ABBN is poor value based on its PE Ratio (53.7x) compared to the Electrical industry average (23.9x).
PE vs Market: ABBN is poor value based on its PE Ratio (53.7x) compared to the Swiss market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: ABBN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ABBN is overvalued based on its PB Ratio (4.3x) compared to the CH Electrical industry average (1.6x).
Next Steps
Future Growth
How is ABB forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
-23.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABBN's earnings are forecast to decline over the next 3 years (-23.5% per year).
Earnings vs Market: ABBN's earnings are forecast to decline over the next 3 years (-23.5% per year).
High Growth Earnings: ABBN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ABBN's revenue (4.4% per year) is forecast to grow faster than the Swiss market (2.3% per year).
High Growth Revenue: ABBN's revenue (4.4% 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 low in 3 years time (19.3%).
Next Steps
Past Performance
How has ABB performed over the past 5 years?
-19.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABBN has a large one-off loss of $763.0M impacting its March 31 2005 financial results.
Growing Profit Margin: ABBN's current net profit margins (3.4%) are lower than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: ABBN's earnings have declined by -19.7% 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 (-35.1%) over the past year, making it difficult to compare to the Electrical industry average (-0.2%).
Return on Equity
High ROE: ABBN's Return on Equity (8.3%) is considered low.
Next Steps
Financial Health
How is ABB's financial position?
Financial Position Analysis
Short Term Liabilities: ABBN's short term assets ($29.0B) exceed its short term liabilities ($24.6B).
Long Term Liabilities: ABBN's short term assets ($29.0B) exceed its long term liabilities ($11.5B).
Debt to Equity History and Analysis
Debt Level: ABBN's debt to equity ratio (104.6%) is considered high.
Reducing Debt: ABBN's debt to equity ratio has increased from 47.5% to 104.6% over the past 5 years.
Debt Coverage: ABBN's debt is not well covered by operating cash flow (15.9%).
Interest Coverage: ABBN earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is ABB current dividend yield, its reliability and sustainability?
3.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ABBN's dividend (3.47%) is higher than the bottom 25% of dividend payers in the Swiss market (1.95%).
High Dividend: ABBN's dividend (3.47%) is low compared to the top 25% of dividend payers in the Swiss market (3.95%).
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.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (188.1%), 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 (66.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Björn Klas Rosengren (61yo)
0.33
Tenure
Mr. Björn 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 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive VP & CFO | 3.25yrs | US$3.82m | 0.0080% $3.8m | |
| Group General Counsel & Company Secretary | 0.67yr | US$3.89m | no data | |
| Chief Human Resources Officer | 1.08yrs | US$2.22m | 0.00011% $52.3k | |
| President of Industrial Automation Division | 3.5yrs | US$3.02m | 0.0066% $3.2m | |
| President of Electrification Products Division | 1.25yrs | US$3.41m | 0.011% $5.1m | |
| President of Robotics & Discrete Automation Business | no data | US$3.23m | 0.0020% $950.3k | |
| President of Motion Business | 1.58yrs | US$2.16m | 0.00053% $251.8k | |
| Chief Executive Officer | 0.33yr | no data | no data | |
| Chief Technology Officer | 4.5yrs | no data | no data | |
| Global Chief information officer | 1.75yrs | no data | no data |
1.6yrs
Average Tenure
55yo
Average Age
Experienced Management: ABBN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent & Non-Executive Director | 4.25yrs | no data | 0.0013% $622.4k | |
| Independent & Non-Executive Director | 6.25yrs | no data | 0.0035% $1.7m | |
| Independent Vice Chairman | 5.25yrs | no data | 0.011% $5.1m | |
| Chairman of the Board | 5.25yrs | US$3.93m | 0.014% $6.5m | |
| Independent & Non-Executive Director | 4.25yrs | no data | 0.0010% $498.9k | |
| Independent & Non-Executive Director | 3.25yrs | no data | 0.0021% $983.6k | |
| Independent & Non-Executive Director | 4.25yrs | no data | 0.0014% $665.2k | |
| Independent & Non-Executive Director | 5.25yrs | no data | 0.0015% $698.5k | |
| Independent Director | 2.33yrs | no data | 0.0015% $703.2k | |
| Independent & Non-Executive Director | 2.33yrs | no data | 0.00078% $370.6k |
4.3yrs
Average Tenure
59yo
Average Age
Experienced Board: ABBN's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ABBN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: CHF47.515b
- Shares outstanding: 2.13b
- Website: https://www.new.abb.com
Number of Employees
Location
- ABB Ltd
- Affolternstrasse 44
- Zurich
- Zurich
- 8050
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ABLZ.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jun 1999 |
| ABBN | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jun 1999 |
| ABB | OM (OMX Nordic Exchange Stockholm) | Yes | Common Stock | SE | SEK | Jun 1999 |
| ABJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1999 |
| 0NX2 | LSE (London Stock Exchange) | Yes | Common Stock | GB | SEK | Jun 1999 |
| ABJ | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jun 1999 |
| ABB | NYSE (New York Stock Exchange) | ADR EACH REPR 1 ORD CHF1.03 | US | USD | Apr 2001 | |
| ABJA | DB (Deutsche Boerse AG) | ADR EACH REPR 1 ORD CHF1.03 | DE | EUR | Apr 2001 | |
| ABB N | BMV (Bolsa Mexicana de Valores) | ADR EACH REPR 1 ORD CHF1.03 | MX | MXN | Apr 2001 |
Biography
ABB Ltd manufactures and sells electrification, industrial automation, motion, and robotics and discrete automation products for customers in utilities, industry and transport, and infrastructure worldwide. The company’s 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, power distribution, food and beverage, marine, e-mobility, and oil and gas industries. Its Industrial Automation segment provides process and discrete control solutions, advanced process control software and manufacturing execution systems, sensing solutions, measurement and analytical instrumentation and solutions, electric ship propulsion systems, 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. The company’s Motion segment offers motors, generators, drives, wind converters, mechanical power transmissions, complete electrical powertrain systems and related services and digital solutions for a wide range of applications in industry, transportation, infrastructure, and utilities. This segment serves machinery manufacturers, process industries, hybrid and batch manufacturers, transportation equipment manufacturers, discrete manufacturing companies, logistics and utility industries, and customers in the automotive industry. Its Robotics & Discrete Automation segment offers robotics, controllers, software, function packages, cells, programmable logic controllers, industrial PCs, servo motion, engineered manufacturing solutions, turn-key solutions, and collaborative robot solutions, as well as digital solutions, and field and after sales services. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 20:46 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.