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Market Cap

US$211.4b

Last Updated

2021/05/11 03:29 UTC

Data Sources

Company Financials +

Executive Summary

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. More Details


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has Abbott Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-0.5%

ABT

-2.9%

US Medical Equipment

-1.2%

US Market


1 Year Return

23.8%

ABT

32.1%

US Medical Equipment

48.3%

US Market

Return vs Industry: ABT underperformed the US Medical Equipment industry which returned 32.1% over the past year.

Return vs Market: ABT underperformed the US Market which returned 48.3% over the past year.


Shareholder returns

ABTIndustryMarket
7 Day-0.5%-2.9%-1.2%
30 Day-1.6%1.7%0.2%
90 Day-5.0%0.3%1.6%
1 Year25.7%23.8%33.1%32.1%50.8%48.3%
3 Year101.3%91.8%71.1%67.0%62.0%51.9%
5 Year241.4%211.0%153.1%134.8%126.9%101.7%

Long-Term Price Volatility Vs. Market

How volatile is Abbott Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Abbott Laboratories undervalued compared to its fair value and its price relative to the market?

37.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABT ($118.94) is trading above our estimate of fair value ($118.09)

Significantly Below Fair Value: ABT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABT is good value based on its PE Ratio (37.1x) compared to the US Medical Equipment industry average (57.6x).

PE vs Market: ABT is poor value based on its PE Ratio (37.1x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABT is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: ABT is overvalued based on its PB Ratio (6.3x) compared to the US Medical Equipment industry average (4.8x).


Future Growth

How is Abbott Laboratories forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABT's forecast earnings growth (6.3% per year) is above the savings rate (2%).

Earnings vs Market: ABT's earnings (6.3% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: ABT's revenue (4% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: ABT's revenue (4% 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 (20.8%)


Past Performance

How has Abbott Laboratories performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABT has high quality earnings.

Growing Profit Margin: ABT's current net profit margins (15.2%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: ABT's earnings have grown significantly by 31.1% per year over the past 5 years.

Accelerating Growth: ABT's earnings growth over the past year (60.9%) exceeds its 5-year average (31.1% per year).

Earnings vs Industry: ABT earnings growth over the past year (60.9%) exceeded the Medical Equipment industry 21.6%.


Return on Equity

High ROE: ABT's Return on Equity (16.9%) is considered low.


Financial Health

How is Abbott Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: ABT's short term assets ($21.8B) exceed its short term liabilities ($12.5B).

Long Term Liabilities: ABT's short term assets ($21.8B) do not cover its long term liabilities ($26.5B).


Debt to Equity History and Analysis

Debt Level: ABT's debt to equity ratio (51.2%) is considered high.

Reducing Debt: ABT's debt to equity ratio has increased from 41.2% to 51.2% over the past 5 years.

Debt Coverage: ABT's debt is well covered by operating cash flow (56.8%).

Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet


Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABT's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ABT's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.41%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), ABT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABT's dividends in 3 years are forecast to be well covered by earnings (33.9% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Robert Ford (46 yo)

1.17yrs

Tenure

US$20,450,586

Compensation

Mr. Robert B. Ford has been the Chief Executive Officer and Director of Abbott Laboratories since March 31, 2020. He has been President at Abbott Laboratories since October 15, 2018 and served as its Execu...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD20.45M) is above average for companies of similar size in the US market ($USD11.15M).

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 not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ABT's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ABT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Abbott Laboratories
  • Ticker: ABT
  • Exchange: NYSE
  • Founded: 1888
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$211.353b
  • Shares outstanding: 1.78b
  • 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


Biography

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 03:29
End of Day Share Price2021/05/10 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.