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ABB

SWX:ABBN
Snowflake Description

6 star dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABBN
SWX
CHF42B
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

ABB Ltd manufactures and sells electrification, robotics and motion, industrial automation, and power grid products worldwide. The last earnings update was 115 days ago. More info.


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ABBN Share Price and Events
7 Day Returns
4%
SWX:ABBN
3.8%
CH Electrical
2.6%
CH Market
1 Year Returns
-16.2%
SWX:ABBN
-15.1%
CH Electrical
-1.2%
CH Market
ABBN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ABB (ABBN) 4% 2.7% -0.5% -16.2% 11.5% -11.3%
CH Electrical 3.8% 4.9% -0.7% -15.1% 13.5% -10%
CH Market 2.6% 3.6% 3.5% -1.2% 13.6% 9.5%
1 Year Return vs Industry and Market
  • ABBN underperformed the Electrical industry which returned -15.1% over the past year.
  • ABBN underperformed the Market in Switzerland which returned -1.2% 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 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
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 6.7%
Electrical Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.779 (1 + (1- 18%) (22.72%))
0.924
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (0.924 * 6.73%)
9.49%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

SWX:ABBN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,990.04 3,339.09 3,364.00 3,470.00 3,311.05
Source Analyst x11 Analyst x9 Analyst x1 Analyst x1 Est @ -4.58%
Present Value
Discounted (@ 9.49%)
2,730.85 2,785.27 2,562.81 2,414.40 2,104.09
Present value of next 5 years cash flows $12,597.42
SWX:ABBN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $3,311.05 × (1 + 3.28%) ÷ (9.49% – 3.28%)
$55,007.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $55,007.28 ÷ (1 + 9.49%)5
$34,955.83
SWX:ABBN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $12,597.42 + $34,955.83
$47,553.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $47,553.24 / 2,131.80
$22.31
SWX:ABBN Discount to Share Price
Calculation Result
Exchange Rate USD/CHF
(Reporting currency to currency of SWX:ABBN)
1.006
Value per Share
(CHF)
= Value per Share in USD x Exchange Rate (USD/CHF)
= $22.31 x 1.006
CHF22.45
Value per share (CHF) From above. CHF22.45
Current discount Discount to share price of CHF19.78
= -1 x (CHF19.78 - CHF22.45) / CHF22.45
11.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ABB is available for.
Intrinsic value
12%
Share price is CHF19.78 vs Future cash flow value of CHF22.45
Current Discount Checks
For ABB to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ABB's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • ABB's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2018-09-30) in USD $1.05
SWX:ABBN Share Price ** SWX (2019-02-15) in CHF CHF19.78
SWX:ABBN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 0.994 $19.65
Europe Electrical Industry PE Ratio Median Figure of 51 Publicly-Listed Electrical Companies 18.19x
Switzerland Market PE Ratio Median Figure of 177 Publicly-Listed Companies 17.95x

* 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)

= 19.65 ÷ 1.05

18.67x

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 18.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
11.3%per year
Europe Electrical Industry PEG Ratio Median Figure of 30 Publicly-Listed Electrical Companies 1.94x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 1.83x

*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

= 18.67x ÷ 11.3%

1.65x

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 (2018-09-30) in USD $6.62
SWX:ABBN Share Price * SWX (2019-02-15) in CHF CHF19.78
SWX:ABBN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 0.994 $19.65
Switzerland Electrical Industry PB Ratio Median Figure of 5 Publicly-Listed Electrical Companies 2.31x
Switzerland Market PB Ratio Median Figure of 207 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)

= 19.65 ÷ 6.62

2.97x

* 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 19 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
11.3%
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 19 Analysts 11.3%
SWX:ABBN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 3.1%
Europe Electrical Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
Europe Electrical Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 8.3%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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 (4 months ago) See Below
Future Estimates Average of up to 19 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 3,988
2022-12-31 46,645 3,980 3,760 1
2021-12-31 38,257 3,190 2
2020-12-31 37,876 4,318 2,910 16
2019-12-31 37,086 3,859 2,669 19
2018-12-31 36,195 3,660 2,284 18
SWX:ABBN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 36,053 2,926 2,246
2018-06-30 35,520 3,315 2,219
2018-03-31 35,085 2,772 2,070
2017-12-31 34,312 3,799 2,219
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 33,828 3,843 1,883
2016-09-30 34,077 4,409 1,663
2016-06-30 34,341 4,501 1,688
2016-03-31 34,829 4,017 1,871
2015-12-31 35,481 3,818 1,930

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ABB's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
  • ABB's revenue is expected to grow by 3.1% 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 (4 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from ABB Company Filings, last reported 4 months 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
2022-12-31 1.75 1.75 1.75 1.00
2021-12-31 1.68 1.68 1.68 1.00
2020-12-31 1.42 1.66 1.08 11.00
2019-12-31 1.32 1.68 1.08 13.00
2018-12-31 1.14 1.32 0.89 14.00
SWX:ABBN Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 1.05
2018-06-30 1.04
2018-03-31 0.97
2017-12-31 1.04
2017-09-30 1.05
2017-06-30 1.04
2017-03-31 0.98
2016-12-31 0.88
2016-09-30 0.77
2016-06-30 0.77
2016-03-31 0.85
2015-12-31 0.87

*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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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 is negative, it can't be compared to the 5-year average.
  • ABB's 1-year earnings growth is negative, it can't be compared to the Europe Electrical industry average.
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 4 months 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
2018-09-30 36,053.00 2,246.00 5,934.00 1,430.00
2018-06-30 35,520.00 2,219.00 5,807.00 1,460.00
2018-03-31 35,085.00 2,070.00 5,787.00 1,433.00
2017-12-31 34,312.00 2,219.00 5,649.00 1,371.00
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 33,828.00 1,883.00 5,132.00 1,305.00
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
2012-03-31 38,495.00 3,189.00 5,432.00 1,411.00

*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 has improved its use of capital 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 1/6, 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 4 months ago.

SWX:ABBN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 7,453.00 5,628.00
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
2012-03-31 17,524.00 6,176.00 7,588.00
  • ABB's level of debt (65%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (44.9% vs 65% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.9x 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
3.94%
Current annual income from ABB dividends. Estimated to be 4.42% next year.
If you bought CHF2,000 of ABB shares you are expected to receive CHF79 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 (1.88%).
  • ABB's dividend is above the markets top 25% of dividend payers in Switzerland (3.7%).
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 19 Analyst Estimates (S&P Global) See Below
Europe Electrical Industry Average Dividend Yield Market Cap Weighted Average of 39 Stocks 3%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 161 Stocks 3.1%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.3%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.9%
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
2022-12-31 1.03 1.00
2021-12-31 0.95 2.00
2020-12-31 0.88 19.00
2019-12-31 0.85 22.00
2018-12-31 0.81 22.00
SWX:ABBN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-03-29 0.773 3.649
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
2009-03-10 0.450 2.586
2009-02-18 0.450 3.820

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ABB's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x 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 6/6, 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
Uli Spiesshofer
COMPENSATION $9,306,828
AGE 54
TENURE AS CEO 5.4 years
CEO Bio

Mr. Ulrich Spiesshofer, also known as Uli, has been the Chief Executive Officer and President of ABB Ltd since September 15, 2013. Mr. Spiesshofer served as the Head of Discrete Automation & Motion Division at ABB Ltd from January 1, 2010 to September 16, 2013. He served as the Head of Corporate Development at ABB Ltd from November 2005 to January 1, 2010. From 2001 to 2002, he served as the Managing Director of A.T. Kearney International AG, Switzerland. He served as Senior Partner and Global Head Operations Practice at Roland Berger & Partners GmbH from 2002 to 2005. From 1999 to 2001, he was a Leader Asian Operations Practice – A.T. Kearney Pty. Ltd., Australia. From 1996 to 1999, he was Member Australian Leadership Team – A.T. Kearney Pty. Ltd., Australia. From 1991 to 1996, he was Associate/Manager/Principal – A.T. Kearney GmbH. From 1989 to 1992, he was Lecturer in business management, University of Stuttgart and Berufsakademie, Stuttgart, Germany. He has been a Director of Baldor Electric Company, Inc since January 27, 2011. He served as Director of ABB Ltd from September 27, 2005 to February 23, 2007. He joined ABB's Executive Committee in 2005 and became responsible for the Discrete Automation and Motion division or DM in 2009. He led a doubling of the division's revenues by organic and inorganic means. He also helped integrate Baldor Electric Co., He also initiated other business expansion activities in the division based on organic growth and acquisitions. His actions helped the division grow faster than the market and expand into new business areas like e-mobility and uninterruptible power supplies. He has increased profit margins through a turnaround in Robotics. He had been responsible for Corporate Development, leading strategy development and implementation across the power and automation businesses, including ABB's roadmap for mergers and acquisitions and the formation of its technology venture arm. He strengthened ABB's operational excellence and procurement processes in this role, laying the groundwork for the cost savings program. Mr. Spiesshofer spent three years at Roland Berger Strategy Consultants and 11 years at A.T. Kearney management consultants, where he built successful consulting businesses in industries such as oil and gas, utilities, telecoms and automotive. From 1984 to 1989, Mr. Spiesshofer holds a Masters Degree in Business Administration and Engineering, University of Stuttgart, Germany and from 1989 to 1991 PhD in Economics, University of Stuttgart, Germany.

CEO Compensation
  • Uli's compensation has been consistent with company performance over the past year.
  • Uli's remuneration is higher than average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the ABB management team in years:

3.1
Average Tenure
54.5
Average Age
  • The tenure for the ABB management team is about average.
Management Team

Uli Spiesshofer

TITLE
President & CEO
COMPENSATION
$9M
AGE
54
TENURE
5.4 yrs

Timo Ihamuotila

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
52
TENURE
1.8 yrs

Diane de Saint Victor

TITLE
General Counsel
COMPENSATION
$3M
AGE
63

Jean-Christophe Deslarzes

TITLE
Chief Human Resources Officer
COMPENSATION
$3M
AGE
55
TENURE
5.3 yrs

Greg Scheu

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

Peter Terwiesch

TITLE
President of Industrial Automation Division
COMPENSATION
$2M
AGE
52
TENURE
2.1 yrs

Tarak Mehta

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

Frank Duggan

TITLE
President of Europe
COMPENSATION
$2M
AGE
59
TENURE
4.1 yrs

Claudio Facchin

TITLE
President of Power Grids Division
COMPENSATION
$2M
AGE
53
TENURE
3.1 yrs

Chunyuan Gu

TITLE
Chairman of ABB China & President of the AMEA Region
COMPENSATION
$1M
AGE
60
TENURE
1.6 yrs
Board of Directors Tenure

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

2.8
Average Tenure
58.5
Average Age
  • The average tenure for the ABB board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Voser

TITLE
Chairman
AGE
60
TENURE
3.8 yrs

Jacob Wallenberg

TITLE
Vice Chairman
AGE
62
TENURE
3.8 yrs

Chunyuan Gu

TITLE
Chairman of ABB China & President of the AMEA Region
COMPENSATION
$1M
AGE
60

David Constable

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

David Meline

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

Matti Alahuhta

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

Fred Curado

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

Satish Pai

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

Lars Förberg

TITLE
Non-Executive Director
AGE
53
TENURE
1.8 yrs

Jennifer Li

TITLE
Director
AGE
50
TENURE
0.9 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)
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
17. May 18 Buy David Constable Individual 15. May 18 15. May 18 2,947 CHF22.72 CHF66,956
17. May 18 Buy David Meline Individual 15. May 18 15. May 18 2,779 CHF22.72 CHF63,139
17. May 18 Buy Lars Förberg Individual 15. May 18 15. May 18 6,690 CHF22.72 CHF151,997
17. May 18 Buy Satish Pai Individual 15. May 18 15. May 18 2,574 CHF22.72 CHF58,481
17. May 18 Buy Peter Voser Individual 15. May 18 15. May 18 25,133 CHF22.72 CHF571,022
17. May 18 Buy Jacob Wallenberg Individual 15. May 18 15. May 18 3,789 CHF22.72 CHF86,086
17. May 18 Buy Matti Alahuhta Individual 15. May 18 15. May 18 5,388 CHF22.74 CHF122,469
17. May 18 Buy Frederico C. Pinheiro Curado Individual 15. May 18 15. May 18 2,495 CHF22.72 CHF56,686
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

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 -

Have Insiders Been Buying ABB Ltd (VTX:ABBN) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. … In the last twelve months, the biggest single purchase by an insider was when President & CEO Ulrich Spiesshofer bought CHF2.3m worth of shares at a price of CHF22.73 per share. … That means that even when the share price was higher, an insider wanted to purchase shares

Simply Wall St -

How Does ABB Ltd (VTX:ABBN) Fare As A Dividend Stock?

The company currently pays out a dividend yield of 4.1% to shareholders, making it a relatively attractive dividend stock. … Does ABB tick all the boxes of a great dividend stock? … 5 questions to ask before buying a dividend stock

Simply Wall St -

Do Institutions Own ABB Ltd (VTX:ABBN) Shares?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about ABBN

Simply Wall St -

Don't Sell ABB Ltd (VTX:ABBN) Before You Read This

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate ABB's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Is ABB Ltd (VTX:ABBN) A Cash Cow?

Today we will examine ABB’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … I will be analysing ABB’s FCF by looking at its FCF yield and its operating cash flow growth. … The yield will tell us whether the stock is generating enough cash to compensate for the risk investors take on by holding a single stock, which I will compare to the market index.

Simply Wall St -

What Should Investors Know About ABB Ltd's (VTX:ABBN) Return On Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Your return is tied to ABBN’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in ABB, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is ABB Ltd's (VTX:ABBN) Balance Sheet A Threat To Its Future?

One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. … Today we will look at ABB’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Company Info

Map
Description

ABB Ltd manufactures and sells electrification, robotics and motion, industrial automation, and power grid products worldwide. Its Electrification Products segment provides modular substation packages, distribution automation products, 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, food and beverage, marine, 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 services 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. The company’s Power Grids segment offers turnkey grid integration, transmission systems, and substation solutions; transformers; and circuit breakers, switchgear, and capacitors. This segment serves transmission and distribution operators and owners, as well as utilities and industrial, transportation, and infrastructure customers. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.

Details
Name: ABB Ltd
ABBN
Exchange: SWX
Founded: 1883
CHF42,156,416,308
2,131,803,606
Website: http://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
135,000
ABB employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/17 20:57
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/10/25
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.