SWX:ABBN

Stock Analysis Report

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Market Cap

CHF67.6b

Last Updated

2021/08/04 21:30 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


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 is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ABBN's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

ABBN

-0.8%

CH Electrical

1.2%

CH Market


1 Year Return

43.1%

ABBN

40.8%

CH Electrical

21.9%

CH Market

Return vs Industry: ABBN exceeded the Swiss Electrical industry which returned 40.8% over the past year.

Return vs Market: ABBN exceeded the Swiss Market which returned 21.9% over the past year.


Shareholder returns

ABBNIndustryMarket
7 Day0.6%-0.8%1.2%
30 Day5.7%4.8%1.7%
90 Day10.3%8.7%9.6%
1 Year47.1%43.1%44.7%40.8%25.3%21.9%
3 Year63.6%46.0%59.6%42.8%41.3%25.9%
5 Year89.0%57.4%85.9%55.3%69.7%38.9%

Long-Term 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?

85.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABBN (CHF33.7) is trading above our estimate of fair value (CHF30.53)

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 (86x) compared to the European Electrical industry average (27.5x).

PE vs Market: ABBN is poor value based on its PE Ratio (86x) compared to the Swiss market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: ABBN is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: ABBN is overvalued based on its PB Ratio (5.3x) compared to the CH Electrical industry average (2.1x).


Future Growth

How is ABB forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBN's forecast earnings growth (14.3% per year) is above the savings rate (-0.3%).

Earnings vs Market: ABBN's earnings (14.3% per year) are forecast to grow faster than the Swiss market (10.9% per year).

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

Revenue vs Market: ABBN's revenue (3.9% per year) is forecast to grow slower than the Swiss market (5.1% per year).

High Growth Revenue: ABBN's revenue (3.9% 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 (22.9%)


Past Performance

How has ABB performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABBN has a large one-off loss of $743.0M impacting its June 30 2021 financial results.

Growing Profit Margin: ABBN's current net profit margins (3.2%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: ABBN's earnings have declined by 21.3% 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 (-35.9%) over the past year, making it difficult to compare to the Electrical industry average (32.6%).


Return on Equity

High ROE: ABBN's Return on Equity (6.8%) is considered low.


Financial Health

How is ABB's financial position?


Financial Position Analysis

Short Term Liabilities: ABBN's short term assets ($17.9B) exceed its short term liabilities ($15.9B).

Long Term Liabilities: ABBN's short term assets ($17.9B) exceed its long term liabilities ($9.2B).


Debt to Equity History and Analysis

Debt Level: ABBN's debt to equity ratio (44.1%) is considered high.

Reducing Debt: ABBN's debt to equity ratio has reduced from 59.9% to 44.1% over the past 5 years.

Debt Coverage: ABBN's debt is well covered by operating cash flow (44.4%).

Interest Coverage: ABBN's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABBN's dividend (2.28%) is higher than the bottom 25% of dividend payers in the Swiss market (1.41%).

High Dividend: ABBN's dividend (2.28%) is low compared to the top 25% of dividend payers in the Swiss market (3.5%).


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 (209.4%), 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 (55.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Björn Klas Rosengren (62 yo)

1.42yrs

Tenure

US$10,430,896

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Björn Klas's total compensation ($USD10.43M) is above average for companies of similar size in the Swiss market ($USD5.22M).

Compensation vs Earnings: Insufficient data to compare Björn Klas's compensation with company performance.


Leadership Team

Experienced Management: ABBN's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: ABBN's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ABBN insiders have only sold shares 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: CHF67.602b
  • Shares outstanding: 2.01b
  • Website: https://www.global.abb/group/

Number of Employees


Location

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

Listings


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 Analysis2021/08/04 21:30
End of Day Share Price2021/08/04 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.