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AbbVie

DB:4AB
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
4AB
DB
$115B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products in the United States, Japan, Germany, Canada, Italy, Spain, the Netherlands, the United Kingdom, Brazil, and internationally. The last earnings update was 51 days ago. More info.


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4AB Share Price and Events
7 Day Returns
-3.6%
DB:4AB
-1.4%
DE Biotechs
2.4%
DE Market
1 Year Returns
-9.1%
DB:4AB
-10.6%
DE Biotechs
-6.2%
DE Market
4AB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AbbVie (4AB) -3.6% -2.4% -11.5% -9.1% 26.3% 93.2%
DE Biotechs -1.4% 2.6% -7.7% -10.6% 54.2% 8%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • 4AB outperformed the Biotechs industry which returned -10.6% over the past year.
  • 4AB underperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
4AB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is AbbVie 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 AbbVie 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 AbbVie.

DB:4AB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

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 DB:4AB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.448 (1 + (1- 21%) (35.16%))
1.569
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.57
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.569 * 5.96%)
9.58%

Discounted Cash Flow Calculation for DB:4AB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AbbVie is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:4AB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.58%)
2019 12,898.86 Analyst x7 11,771.10
2020 14,492.57 Analyst x7 12,069.17
2021 15,526.17 Analyst x6 11,799.46
2022 17,113.67 Analyst x3 11,868.80
2023 15,914.67 Analyst x3 10,072.27
2024 15,116.18 Est @ -5.02% 8,730.48
2025 14,595.63 Est @ -3.44% 7,692.80
2026 14,253.77 Est @ -2.34% 6,855.79
2027 14,029.83 Est @ -1.57% 6,158.09
2028 13,885.12 Est @ -1.03% 5,561.72
Present value of next 10 years cash flows $92,579.69
DB:4AB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $13,885.12 × (1 + 0.23%) ÷ (9.58% – 0.23%)
$148,799.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $148,799.75 ÷ (1 + 9.58%)10
$59,602.14
DB:4AB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $92,579.69 + $59,602.14
$152,181.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $152,181.82 / 1,478.16
$102.95
DB:4AB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:4AB represents 0.89094x of NYSE:ABBV
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89094x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 102.95 x 0.89094
€91.73
Value per share (EUR) From above. €91.73
Current discount Discount to share price of €69.11
= -1 x (€69.11 - €91.73) / €91.73
24.7%

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

Current Discount
Amount off the current price AbbVie is available for.
Intrinsic value
25%
Share price is €69.11 vs Future cash flow value of €91.73
Current Discount Checks
For AbbVie to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AbbVie's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AbbVie'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 AbbVie's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AbbVie's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:4AB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.67
NYSE:ABBV Share Price ** NYSE (2019-04-18) in USD $77.57
Europe Biotechs Industry PE Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 22.41x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AbbVie.

DB:4AB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ABBV Share Price ÷ EPS (both in USD)

= 77.57 ÷ 3.67

21.13x

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

  • AbbVie is good value based on earnings compared to the Europe Biotechs industry average.
  • AbbVie is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does AbbVie's expected growth come at a high price?
Raw Data
DB:4AB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
12.5%per year
Europe Biotechs Industry PEG Ratio Median Figure of 22 Publicly-Listed Biotechs Companies 1.3x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:4AB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.13x ÷ 12.5%

1.69x

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

  • AbbVie is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AbbVie's assets?
Raw Data
DB:4AB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-5.71
NYSE:ABBV Share Price * NYSE (2019-04-18) in USD $77.57
Germany Biotechs Industry PB Ratio Median Figure of 15 Publicly-Listed Biotechs Companies 3.71x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:4AB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ABBV Share Price ÷ Book Value per Share (both in USD)

= 77.57 ÷ -5.71

-13.58x

* Primary Listing of AbbVie.

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

  • AbbVie has negative assets, we can't compare the value of its assets to the DE Biotechs industry average.
X
Value checks
We assess AbbVie'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 Biotechs 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 Biotechs industry average (and greater than 0)? (1 check)
  5. AbbVie has a total score of 2/6, 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 AbbVie expected to perform in the next 1 to 3 years based on estimates from 14 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
12.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AbbVie expected to grow at an attractive rate?
  • AbbVie's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • AbbVie's earnings growth is expected to exceed the Germany market average.
  • AbbVie's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:4AB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:4AB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 12.5%
DB:4AB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 47.5%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 26%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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
DB:4AB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:4AB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 38,276 17,133 11,107 9
2022-12-31 39,599 18,587 12,391 9
2021-12-31 36,931 16,531 12,221 11
2020-12-31 34,647 14,802 11,650 13
2019-12-31 32,856 12,516 10,776 14
DB:4AB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 32,753 13,427 5,657
2018-09-30 32,187 12,619 7,531
2018-06-30 30,946 11,366 6,419
2018-03-31 29,612 10,503 6,352
2017-12-31 28,216 9,960 5,283
2017-09-30 27,273 8,917 6,615
2017-06-30 26,710 7,100 6,582
2017-03-31 26,218 7,015 6,278
2016-12-31 25,638 7,041 5,923
2016-09-30 25,242 7,463 6,048
2016-06-30 24,754 8,164 5,690
2016-03-31 23,777 8,078 5,448

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AbbVie's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • AbbVie's revenue is expected to grow by 4% 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
DB:4AB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from AbbVie Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4AB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 8.32 8.32 8.32 1.00
2022-12-31 8.25 8.25 8.25 1.00
2021-12-31 8.47 9.20 7.40 4.00
2020-12-31 7.96 8.56 6.57 6.00
2019-12-31 7.30 8.12 5.94 6.00
DB:4AB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.67
2018-09-30 4.81
2018-06-30 4.04
2018-03-31 3.98
2017-12-31 3.31
2017-09-30 4.13
2017-06-30 4.09
2017-03-31 3.88
2016-12-31 3.65
2016-09-30 3.72
2016-06-30 3.49
2016-03-31 3.34

*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.
  • AbbVie is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess AbbVie'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 Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany 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.
AbbVie 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 AbbVie 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 AbbVie's growth in the last year to its industry (Biotechs).
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.
  • AbbVie's year on year earnings growth rate has been positive over the past 5 years.
  • AbbVie's 1-year earnings growth is less than its 5-year average (7.1% vs 16.8%)
  • AbbVie's earnings growth has not exceeded the Europe Biotechs industry average in the past year (7.1% vs 18.2%).
Earnings and Revenue History
AbbVie'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 AbbVie Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4AB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 32,753.00 5,657.00 7,365.00 5,259.00
2018-09-30 32,187.00 7,531.00 7,044.00 5,217.00
2018-06-30 30,946.00 6,419.00 6,555.00 5,177.00
2018-03-31 29,612.00 6,352.00 6,205.00 5,084.00
2017-12-31 28,216.00 5,283.00 5,878.00 5,007.00
2017-09-30 27,273.00 6,615.00 5,958.00 4,789.00
2017-06-30 26,710.00 6,582.00 5,799.00 4,667.00
2017-03-31 26,218.00 6,278.00 5,873.00 4,562.00
2016-12-31 25,638.00 5,923.00 5,837.00 4,385.00
2016-09-30 25,242.00 6,048.00 5,733.00 4,178.00
2016-06-30 24,754.00 5,690.00 5,724.00 4,472.00
2016-03-31 23,777.00 5,448.00 5,646.00 4,236.00
2015-12-31 22,859.00 5,118.00 5,663.00 4,101.00
2015-09-30 21,911.00 2,790.00 6,059.00 3,978.00
2015-06-30 20,986.00 2,064.00 6,178.00 3,390.00
2015-03-31 20,437.00 1,802.00 6,133.00 3,336.00
2014-12-31 19,960.00 1,765.00 6,024.00 3,297.00
2014-09-30 19,619.00 3,686.00 5,413.00 3,201.00
2014-06-30 19,258.00 4,144.00 5,136.00 3,103.00
2014-03-31 19,024.00 4,114.00 5,113.00 2,978.00
2013-12-31 18,790.00 4,102.00 5,352.00 2,840.00
2013-09-30 18,885.00 4,540.00 4,859.00 2,542.00
2013-06-30 18,735.00 5,161.00 4,730.00 2,641.00
2013-03-31 18,536.00 5,360.00 4,656.00 2,574.00
2012-12-31 18,380.00 5,275.00 4,668.00 2,582.00
2012-09-30 17,933.11 4,892.44 4,712.21 2,775.62
2012-06-30 17,833.79 3,319.77 4,668.08 2,628.14

*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.
  • It is difficult to establish if AbbVie has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • AbbVie used its assets less efficiently than the Europe Biotechs industry average last year based on Return on Assets.
  • AbbVie has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AbbVie'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 Biotechs 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.
AbbVie has a total score of 2/6, 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 AbbVie'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 AbbVie's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AbbVie's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AbbVie's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of AbbVie'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.
  • Low level of unsold assets.
  • AbbVie has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 AbbVie Company Filings, last reported 3 months ago.

DB:4AB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -8,446.00 40,310.00 8,061.00
2018-09-30 -2,921.00 41,215.00 8,785.00
2018-06-30 -3,375.00 37,753.00 3,743.00
2018-03-31 3,553.00 37,872.00 9,474.00
2017-12-31 5,097.00 37,368.00 9,789.00
2017-09-30 6,687.00 38,090.00 9,554.00
2017-06-30 6,009.00 37,543.00 7,205.00
2017-03-31 4,998.00 37,304.00 6,248.00
2016-12-31 4,636.00 36,842.00 6,423.00
2016-09-30 6,469.00 37,311.00 7,950.00
2016-06-30 5,640.00 37,845.00 8,002.00
2016-03-31 4,643.00 31,913.00 8,600.00
2015-12-31 3,945.00 31,752.00 8,407.00
2015-09-30 4,863.00 32,133.00 9,311.00
2015-06-30 5,504.00 31,302.00 8,279.00
2015-03-31 1,377.00 15,332.00 7,924.00
2014-12-31 1,742.00 14,977.00 8,374.00
2014-09-30 4,645.00 15,061.00 7,728.00
2014-06-30 5,218.00 15,001.00 10,246.00
2014-03-31 4,697.00 14,752.00 9,100.00
2013-12-31 4,492.00 14,723.00 9,895.00
2013-09-30 3,577.00 15,158.00 9,596.00
2013-06-30 3,558.00 15,154.00 8,754.00
2013-03-31 2,957.00 15,158.00 7,479.00
2012-12-31 3,363.00 15,672.00 7,976.00
2012-09-30 15,668.84 0.00 4,585.61
2012-06-30 11,505.08 0.00 74.54
  • AbbVie has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if AbbVie's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (33.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.4x coverage).
X
Financial health checks
We assess AbbVie'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. AbbVie has a total score of 2/6, 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 AbbVie'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
5.52%
Current annual income from AbbVie dividends. Estimated to be 6.18% next year.
If you bought €2,000 of AbbVie shares you are expected to receive €110 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?
  • AbbVie's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • AbbVie's dividend is above the markets top 25% of dividend payers in Germany (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
DB:4AB 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 14 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 0.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany 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.

DB:4AB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 5.45 3.00
2022-12-31 5.32 3.00
2021-12-31 5.09 9.00
2020-12-31 4.70 12.00
2019-12-31 4.36 12.00
DB:4AB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 4.280 5.330
2019-01-25 4.280 5.378
2018-11-07 4.280 4.870
2018-11-02 4.280 5.150
2018-09-07 3.840 4.274
2018-06-14 3.840 4.037
2018-02-15 3.840 3.748
2017-10-27 2.840 2.841
2017-09-08 2.560 2.855
2017-06-22 2.560 3.527
2017-02-16 2.560 3.895
2017-01-27 2.560 4.213
2016-11-07 2.560 4.159
2016-10-28 2.560 4.510
2016-06-16 2.280 3.590
2016-02-18 2.280 3.856
2015-10-30 2.280 3.971
2015-09-11 2.040 3.671
2015-06-18 2.040 3.036
2015-02-19 2.040 3.263
2014-10-20 1.960 3.093
2014-09-19 1.680 2.965
2014-06-19 1.680 3.050
2014-02-20 1.680 3.237
2013-12-12 1.600 3.168
2013-09-19 1.600 3.341
2013-06-20 1.600 3.644
2013-01-04 1.600 3.987
2012-12-10 1.600 4.644

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

  • Whilst dividend payments have been stable, AbbVie has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but AbbVie only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of AbbVie's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess AbbVie's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 AbbVie afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AbbVie has a total score of 3/6, 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 AbbVie'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
Rick Gonzalez
COMPENSATION $21,271,869
AGE 64
TENURE AS CEO 7.3 years
CEO Bio

Mr. Richard A. Gonzalez, also known as Rick, serves as the Chairman of AbbVie Inc. and has been its Chief Executive Officer at AbbVie Inc. since 2012. Mr. Gonzalez served as an Executive Vice President of Pharmaceutical Products Group at Abbott Diabetes Care Inc., since July 1, 2010. He served as President of Abbott Ventures, Inc. at Abbott Diabetes Care, Inc. since 2009. He served as an Interim Executive Vice President of Pharmaceutical Products at Abbott Laboratories since July 1, 2010. He was responsible for Abbott's global pharmaceutical business, including commercial operations, research and development and manufacturing. He has served more than 30 years in various capacities at Abbott. He served as President, Abbott Ventures Inc., Abbott's medical technology investment arm, from 2009 to 2011. Mr. Gonzalez joined Abbott in 1977 and held various management positions before briefly retiring in 2007, including President of Abbott's Medical Products Group and President of Abbott's former Hospital Products Division (now Hospira, Inc.). He served as Chief Operating Officer and President at Abbott Vascular, Inc., a subsidiary of Abbott Laboratories until September 30, 2007. He served as an Executive Vice President of medical products of Abbott from 2000 to 2001, as Senior Vice President, hospital products from 1998 to 2000 and as Vice President of Abbott Health Systems division from 1995 to 1998. He served as President of Abbott's Health Systems Division. He joined Abbott in 1977. Since 1992, he served as Divisional Vice President and General Manager for Abbott's Diagnostic Operations in the United States and Canada. He served as a Chief Operating Officer & President of Abbott Laboratories from 2006 to September 30, 2007, served as its Chief Operating Officer of Medical Products Group and President of Medical Products Group-div from 2001 to March 27, 2006, President from 2006 to September 30, 2007, Chief Operating Officer of all Operations and President of All Operations since March 27, 2006. Prior to Abbott, Mr. Gonzalez served as a research biochemist at the University of Miami School of Medicine. He serves on the board of Directors of the John G. Shedd Aquarium and the Lyric Opera of Chicago. He served as a Director of Abbott Vascular, Inc. until September 30, 2007 and Abbott Laboratories from December 14, 2001 to September 30, 2007.

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

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

0.5
Average Tenure
53.5
Average Age
  • The average tenure for the AbbVie management team is less than 2 years, this suggests a new team.
Management Team

Rick Gonzalez

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
64
TENURE
7.3 yrs

Mike Severino

TITLE
Vice Chairman & President
COMPENSATION
$9M
AGE
52
TENURE
0.3 yrs

Robert Michael

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
48
TENURE
0.5 yrs

Bill Chase

TITLE
Executive Vice President of Finance & Administration
COMPENSATION
$9M
AGE
50
TENURE
0.5 yrs

Laura Schumacher

TITLE
Vice Chairman of External Affairs
COMPENSATION
$11M
AGE
55
TENURE
6.3 yrs

Carlos Alban

TITLE
Vice Chairman & Chief Commercial Officer
COMPENSATION
$9M
AGE
55

Azita Saleki-Gerhardt

TITLE
Executive Vice President of Operations
AGE
55

Liz Shea

TITLE
Vice President of Investor Relations

Tim Richmond

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$3M
AGE
52

Scott Brun

TITLE
VP of Scientific Affairs & Head of AbbVie Ventures
Board of Directors Tenure

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

6.3
Average Tenure
64
Average Age
  • The tenure for the AbbVie board of directors is about average.
Board of Directors

Rick Gonzalez

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
64

Roxanne Austin

TITLE
Independent Director
COMPENSATION
$328K
AGE
57
TENURE
6.3 yrs

Ed Liddy

TITLE
Independent Director
COMPENSATION
$318K
AGE
72
TENURE
6.3 yrs

Ed Rapp

TITLE
Independent Director
COMPENSATION
$349K
AGE
60
TENURE
6.3 yrs

Glenn Tilton

TITLE
Lead Independent Director
COMPENSATION
$369K
AGE
70
TENURE
6.3 yrs

Willie Burnside

TITLE
Independent Director
COMPENSATION
$329K
AGE
66
TENURE
6.3 yrs

Robert Alpern

TITLE
Independent Director
COMPENSATION
$351K
AGE
67
TENURE
6.3 yrs

Rick Waddell

TITLE
Independent Director
COMPENSATION
$329K
AGE
64
TENURE
6.3 yrs

Brett Hart

TITLE
Independent Director
COMPENSATION
$323K
AGE
48
TENURE
3.3 yrs

Melody Meyer

TITLE
Director
COMPENSATION
$329K
AGE
60
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
21. Aug 18 Sell Michael Severino Individual 17. Aug 18 17. Aug 18 -50,000 €85.79 €-4,272,404
29. Jun 18 Buy Glenn Tilton Individual 27. Jun 18 27. Jun 18 5,400 €79.28 €428,086
22. Jun 18 Buy Edward Rapp Individual 20. Jun 18 20. Jun 18 1,013 €85.17 €86,281
X
Management checks
We assess AbbVie'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. AbbVie 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

Company Info

Description

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products in the United States, Japan, Germany, Canada, Italy, Spain, the Netherlands, the United Kingdom, Brazil, and internationally. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases; IMBRUVICA to treat adult patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL), mantle cell lymphoma, waldenström’s macroglobulinemia, marginal zone lymphoma, and chronic graft versus host disease; VENCLEXTA, a BCL-2 inhibitor used to treat adults with CLL or SLL; VIEKIRA PAK, an interferon-free therapy to treat adults with genotype 1 chronic hepatitis C virus (HCV); TECHNIVIE to treat adults with genotype 4 HCV infection; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides KALETRA, an anti-human immunodeficiency virus (HIV)-1 medicine used with other anti-HIV-1 medications to maintain viral suppression in HIV-1 patients; NORVIR, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1; and SYNAGIS to prevent respiratory syncytial virus infection at-risk infants. In addition, the company offers AndroGel, a testosterone replacement therapy for males; CREON, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron to treat prostate cancer, endometriosis, and central precocious puberty, as well as anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson’s disease; Sevoflurane, an anesthesia product; and ORILISSA, a non-peptide small molecule gonadotropin-releasing hormone antagonist for women with moderate to severe endometriosis pain. It has collaborations with Alector, Inc.; Janssen Biotech, Inc.; Galapagos; Bristol-Myers Squibb Company; and Calico Life Sciences LLC. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

Details
Name: AbbVie Inc.
4AB
Exchange: DB
Founded: 2012
$101,956,772,164
1,478,164,719
Website: http://www.abbvie.com
Address: AbbVie Inc.
1 North Waukegan Road,
North Chicago,
Illinois, 60064,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ABBV Common Stock New York Stock Exchange US USD 10. Dec 2012
DB 4AB Common Stock Deutsche Boerse AG DE EUR 10. Dec 2012
LSE 0QCV Common Stock London Stock Exchange GB EUR 10. Dec 2012
WBAG ABBV Common Stock Wiener Boerse AG AT EUR 10. Dec 2012
BMV ABBV * Common Stock Bolsa Mexicana de Valores MX MXN 10. Dec 2012
BOVESPA ABBV34 BDR EACH REPR 1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
30,000
AbbVie employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 21:41
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.