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ABT

Abbott Laboratories NYSE:ABT Stock Report

Last Price

US$100.68

Market Cap

US$176.3b

7D

-3.2%

1Y

-19.0%

Updated

24 Sep, 2022

Data

Company Financials +
ABT fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends3/6

ABT Stock Overview

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide.

Abbott Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Abbott Laboratories
Historical stock prices
Current Share PriceUS$100.68
52 Week HighUS$142.60
52 Week LowUS$98.81
Beta0.71
1 Month Change-4.92%
3 Month Change-8.01%
1 Year Change-19.05%
3 Year Change23.02%
5 Year Change88.68%
Change since IPO1,063.09%

Recent News & Updates

Sep 22

Abbott stock falls below $100 for first time in two years as it hits fresh 52-week low

Abbott Laboratories' (NYSE:ABT) share price fell below $100 in Thursday trading, the first time that has happened since August 2020. The health care giant hit a 52-week low of $99.85. The last time it was below $100 was when it reached $99.75 on Aug. 20, 2020. Abbott shares are down ~27% year to date. Over the last year, they are down ~19%. Seeking Alpha contributor Out of Ignorance recently wrote that although Abbott (ABT) is facing serious headwinds from the macro environment, the share price decline provides a nice entry point to start a position.

Sep 15
Does Abbott Laboratories (NYSE:ABT) Have A Healthy Balance Sheet?

Does Abbott Laboratories (NYSE:ABT) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 13

Abbott's Rough Patch: What Gives?

Summary Abbott's H1 experienced windfall revenues from its COVID-19 tests. Abbott's shareholders have had a rough 2022. Abbott issues and macro issues are holding it down, but they are only transitory. Ever since 2016's question article, "Abbott Laboratories: Should I Stay Or Should I Go?", my sundry Abbott (ABT) articles have been generally laudatory. In this article, I am again questioning Abbott's ongoing investment thesis. Abbott has benefited from huge COVID test revenues. As COVID lockdowns rolled/roiled across the US during March and April of 2020, economic activity took a huge hit. Surgical procedures were even more dramatically devastated. Unlike its medical device peers, Abbott was heavily insulated from loss during this period by its clever seizure of opportunity from the COVID disaster. Its heroic development of "no fewer than eight COVID-19 tests": ...while encumbered by, a worldwide pandemic that was just beginning in January of 2020, ... seems like an impossibility. Abbott pulled it off as the pandemic was growing. In time it had a COVID-19 testing franchise embracing the various components shown below: seekingalpha.com It pulled in COVID-19 testing-related sales totaling ~$3.9 billion in 2020 and ~$7.7 billion in 2021 (2022 10-K, pg. 22). So far thru Q2, 2022, it has COVID-19 testing-related sales totaling ~$5.6 billion (Q2, 2022 10-Q, pg. 23). While these huge revenues foster wonderful growth metrics for Abbott, they are illusory because they are of highly uncertain duration and they are highly unlikely to continue at anywhere near this level. Abbott's situation with its COVID testing revenues reminds me of Gilead (GILD) with its SOVALDI/HARVONI/EPCLUSA problem. Its HCV therapies brought Gilead huge treasure, but since they cured HCV without ongoing therapy, they guaranteed dropping revenues. The cash influx was nice, but Gilead has not done so well over the years; hopefully its path is not predictive of Abbott. Abbott's diversified device business is sufficiently different from Gilead's more limited therapy business that seems a safe bet. Unfortunately some similarities are cropping up. Despite strong revenues, Abbott has faced peak to trough price erosion of nearly 30% since Christmas 2021. Santa left Abbott shareholders with Yuletide bounty of a peak $142.60 Abbott share price on 12/27/2021. So far 2022 has been all about his un-gifting of this happy tiding as shown by its chart below: ABT data by YCharts I was chagrinned and surprised to see that Abbott brought up the nether extreme of its key competitors. This is particularly strange insofar as the pandemic has been so troublesome for the run of device companies who, like Abbott, have suffered from erratic procedure volumes. Unlike the run of its peers as discussed above, Abbott has had a compensating pandemic benefit of billions in COVID-19 test revenues. Its listed competitors have not. This brings up the titular question, what gives? Unusually, several factors are working to hold Abbott back. Abbott's recent news feed has included several downbeat issues. Tight government funding for COVID-19 testing is one. However, the bigger issue and one that keeps popping up with disturbing continuity has to do with its baby formula ills. In 02/2022 Abbott issued its 8-K announcing its "proactive, voluntary recall" of Similac-brand baby powder manufactured at its Sturgis Michigan plant. During its Q1, 2022 earnings call, CEO Ford reported the following comforting update: ...we initiated a voluntary recall in February of certain infant formula products manufactured at one of our U.S. facilities. ... we retain in-house samples of products that we ship to customers. Testing of retained samples related to this recall action by both Abbott and the FDA have all come back negative for ... the bacteria that cause the reported illnesses. Importantly, the FDA and CDC found that there is no genetic match between the strains of the bacteria identified in non-product contact areas of our facility and available samples obtained from customer complaints, suggesting a different source of contamination. ...no salmonella was found in our factory or product[:] the FDA ruled out any link to our facility. We hope these findings get parents, caregivers and other stakeholders renewed confidence in our products. We know the situation has further exacerbated industry-wide infant formula supply shortages. That's why we're doing everything possible to mitigate supply constraints by bringing in product from our FDA registered facility in Europe and ramping up production at our other U.S. plants. The situation seemed under control, with Abbott having pre-emptively identified and appropriately resolved the issue, or so I thought. How wrong I was. Unknown to me, another less comforting narrative was in progress.

Shareholder Returns

ABTUS Medical EquipmentUS Market
7D-3.2%-7.0%-5.2%
1Y-19.0%-32.8%-23.1%

Return vs Industry: ABT exceeded the US Medical Equipment industry which returned -32.8% over the past year.

Return vs Market: ABT exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is ABT's price volatile compared to industry and market?
ABT volatility
ABT Average Weekly Movement3.1%
Medical Equipment Industry Average Movement8.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: ABT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1888113,000Robert Fordhttps://www.abbott.com

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon.

Abbott Laboratories Fundamentals Summary

How do Abbott Laboratories's earnings and revenue compare to its market cap?
ABT fundamental statistics
Market CapUS$176.31b
Earnings (TTM)US$8.52b
Revenue (TTM)US$45.55b

20.7x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABT income statement (TTM)
RevenueUS$45.55b
Cost of RevenueUS$19.14b
Gross ProfitUS$26.41b
Other ExpensesUS$17.89b
EarningsUS$8.52b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.87
Gross Margin57.98%
Net Profit Margin18.71%
Debt/Equity Ratio45.9%

How did ABT perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

39%

Payout Ratio

Does ABT pay a reliable dividends?

See ABT dividend history and benchmarks
When do you need to buy ABT by to receive an upcoming dividend?
Abbott Laboratories dividend dates
Ex Dividend DateOct 13 2022
Dividend Pay DateNov 15 2022
Days until Ex dividend18 days
Days until Dividend pay date51 days

Does ABT pay a reliable dividends?

See ABT dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ABT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABT?

Other financial metrics that can be useful for relative valuation.

ABT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4x
Enterprise Value/EBITDA13.2x
PEG Ratio10.6x

Price to Earnings Ratio vs Peers

How does ABT's PE Ratio compare to its peers?

ABT PE Ratio vs Peers
The above table shows the PE ratio for ABT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.3x
MDT Medtronic
21.1x9.1%US$109.9b
SYK Stryker
37.7x14.8%US$78.3b
ISRG Intuitive Surgical
47.4x17.3%US$68.0b
BDX Becton Dickinson
35.1x15.7%US$66.7b
ABT Abbott Laboratories
20.7x2.0%US$176.3b

Price-To-Earnings vs Peers: ABT is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (35.3x).


Price to Earnings Ratio vs Industry

How does ABT's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: ABT is good value based on its Price-To-Earnings Ratio (20.7x) compared to the US Medical Equipment industry average (32.1x)


Price to Earnings Ratio vs Fair Ratio

What is ABT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: ABT is good value based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).


Share Price vs Fair Value

What is the Fair Price of ABT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABT ($100.68) is trading below our estimate of fair value ($133.55)

Significantly Below Fair Value: ABT is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Abbott Laboratories forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABT's forecast earnings growth (2% per year) is above the savings rate (1.9%).

Earnings vs Market: ABT's earnings (2% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: ABT's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ABT's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABT's Return on Equity is forecast to be high in 3 years time (21.2%)


Discover growth companies

Past Performance

How has Abbott Laboratories performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


42.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABT has high quality earnings.

Growing Profit Margin: ABT's current net profit margins (18.7%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: ABT's earnings have grown significantly by 42.1% per year over the past 5 years.

Accelerating Growth: ABT's earnings growth over the past year (34.3%) is below its 5-year average (42.1% per year).

Earnings vs Industry: ABT earnings growth over the past year (34.3%) exceeded the Medical Equipment industry 0.6%.


Return on Equity

High ROE: ABT's Return on Equity (23.3%) is considered high.


Discover strong past performing companies

Financial Health

How is Abbott Laboratories's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABT's short term assets ($25.0B) exceed its short term liabilities ($12.4B).

Long Term Liabilities: ABT's short term assets ($25.0B) do not cover its long term liabilities ($25.1B).


Debt to Equity History and Analysis

Debt Level: ABT's net debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: ABT's debt to equity ratio has reduced from 75.8% to 45.9% over the past 5 years.

Debt Coverage: ABT's debt is well covered by operating cash flow (60.8%).

Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.87%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateOct 13 2022Dividend Pay DateNov 15 202233 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ABT's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: ABT's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: ABT's dividend payments have been volatile in the past 10 years.

Growing Dividend: ABT's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.5%), ABT's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.9%), ABT's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

7.6yrs

Average management tenure


CEO

Robert Ford (48 yo)

3.92yrs

Tenure

US$24,914,886

Compensation

Mr. Robert B. Ford has been the Chief Executive Officer and Director of Abbott Laboratories since March 31, 2020 and also serves as its Chairman of the Board since December 10, 2021. He has been President...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD24.91M) is above average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ABT's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: ABT's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

NYSE:ABT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Jul 22SellUS$267,943Fernando MateusIndividual2,457US$109.05
03 May 22SellUS$4,957,877Daniel StarksIndividual43,877US$113.29
03 May 22SellUS$703,171Daniel StarksIndividual6,123US$114.84
08 Mar 22SellUS$468,001Michael DaleIndividual4,000US$117.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 46.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.71%
The Vanguard Group, Inc.
152,551,738$15.4b0.84%0.35%
7.74%
Capital Research and Management Company
135,504,877$13.6b-0.29%0.91%
7.73%
BlackRock, Inc.
135,406,658$13.6b1.92%0.33%
4.21%
State Street Global Advisors, Inc.
73,787,726$7.4b0.1%0.4%
1.68%
Geode Capital Management, LLC
29,407,281$3.0b3%0.38%
1.45%
Massachusetts Financial Services Company
25,455,603$2.6b-1.64%0.65%
1.39%
Northern Trust Global Investments
24,303,493$2.4b-4.2%0.49%
1.08%
BNY Mellon Asset Management
18,916,160$1.9b-0.39%0.42%
1.02%
Morgan Stanley Investment Management Inc.
17,911,564$1.8b-1.02%1.36%
0.93%
Norges Bank Investment Management
16,276,274$1.6b0%0.22%
0.88%
Polen Capital Management, LLC
15,374,217$1.5b-31.44%4.1%
0.86%
Columbia Management Investment Advisers, LLC
15,057,602$1.5b1.48%0.44%
0.85%
Wells Fargo & Company, Securities and Brokerage Investments
14,958,935$1.5b0%0.64%
0.78%
UBS Asset Management
13,734,721$1.4b2.16%0.26%
0.78%
State Farm Insurance Companies, Asset Management Arm
13,587,118$1.4b0%1.55%
0.76%
Legal & General Investment Management Limited
13,252,430$1.3b4.46%0.39%
0.7%
AllianceBernstein L.P.
12,278,535$1.2b-4.59%0.5%
0.67%
Morgan Stanley, Investment Banking and Brokerage Investments
11,720,626$1.2b-0.56%0.23%
0.66%
Charles Schwab Investment Management, Inc.
11,546,113$1.2b0.09%0.3%
0.62%
Jennison Associates LLC
10,925,104$1.1b80.52%0.96%
0.62%
Eaton Vance Management
10,855,587$1.1b0.17%0.4%
0.61%
FMR LLC
10,686,695$1.1b-0.64%0.1%
0.56%
Managed Account Advisors LLC
9,776,133$984.3m-1.06%0.27%
0.54%
T. Rowe Price Group, Inc.
9,412,794$947.7m12.89%0.11%
0.54%
Fisher Asset Management, LLC
9,390,366$945.4m3.03%0.68%

Company Information

Abbott Laboratories's employee growth, exchange listings and data sources


Key Information

  • Name: Abbott Laboratories
  • Ticker: ABT
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Implied Market Cap: US$176.313b
  • Shares outstanding: 1.75b
  • Website: https://www.abbott.com

Number of Employees


Location

  • Abbott Laboratories
  • 100 Abbott Park Road
  • Abbott Park
  • North Chicago
  • Illinois
  • 60064-6400
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABTNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
0Q15LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
ABTSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1968
ABT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
ABLXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1968
ABLDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
ABTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1968
ABTCLSNSE (Santiago Stock Exchange)YesCommon SharesCLCLPJan 1968
ABT_KZKAS (Kazakhstan Stock Exchange)YesCommon SharesKZUSDJan 1968
ABTBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1ARARSSep 2000
ABTDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1ARUSDSep 2000
ABTT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REP 1 COMBRBRLAug 2012

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.