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ABT

Abbott LaboratoriesNYSE:ABT Stock Report

Market Cap

US$224.1b

7D

2.6%

1Y

19.4%

Updated

02 Dec, 2021

Data

Company Financials +
ABT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends4/6

ABT Stock Overview

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

Abbott Laboratories Competitors

Medtronic

NYSE:MDT

US$141.8b

Becton Dickinson

NYSE:BDX

US$68.6b

Edwards Lifesciences

NYSE:EW

US$67.1b

Boston Scientific

NYSE:BSX

US$54.3b

Price History & Performance

Summary of all time highs, changes and price drops for Abbott Laboratories
Historical stock prices
Current Share PriceUS$128.38
52 Week HighUS$131.61
52 Week LowUS$105.32
Beta0.67
1 Month Change0.53%
3 Month Change-0.43%
1 Year Change19.39%
3 Year Change79.45%
5 Year Change231.90%
Change since IPO1,383.09%

Recent News & Updates

Nov 30

Abbott: Vaccinate Your Portfolio With A Pandemic-Resistant Dividend Aristocrat

Abbott's Q3, 2021 exemplified its pandemic resistance. Abbott's COVID-19 testing has grown to a major contributor for Abbott, counterbalancing the pandemic challenges elsewhere in its business. Abbott has taken its punches as it has brought its COVID-19 testing business up to scale.

Nov 26
A Look At The Fair Value Of Abbott Laboratories (NYSE:ABT)

A Look At The Fair Value Of Abbott Laboratories (NYSE:ABT)

Today we will run through one way of estimating the intrinsic value of Abbott Laboratories ( NYSE:ABT ) by taking the...

Nov 02
We Like These Underlying Return On Capital Trends At Abbott Laboratories (NYSE:ABT)

We Like These Underlying Return On Capital Trends At Abbott Laboratories (NYSE:ABT)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...

Oct 28

Abbott Deserves To Be On Your Watchlist

Abbott smashed analysts’ third quarter estimates thanks to better-than-expected COVID-19 testing revenues and strong performance by all major divisions. The company’s Libre platform for diabetes management, recent approvals in key growth areas and several upcoming products are expected to drive future sales. While I am optimistic about Abbott based on its diversified business, strong fundamentals and growth prospects beyond COVID-19 testing, I have a Neutral stance owing to valuation concerns.

Shareholder Returns

ABTUS Medical EquipmentUS Market
7D2.6%-3.0%-3.5%
1Y19.4%11.7%19.4%

Return vs Industry: ABT exceeded the US Medical Equipment industry which returned 9.5% over the past year.

Return vs Market: ABT exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is ABT's price volatile compared to industry and market?
ABT volatility
ABT Average Weekly Movement2.7%
Medical Equipment Industry Average Movement7.5%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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
1888109,000Robert Fordhttps://www.abbott.com

Abbott Laboratories 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$224.11b
Earnings (TTM)US$7.21b
Revenue (TTM)US$42.31b

31.5x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABT income statement (TTM)
RevenueUS$42.31b
Cost of RevenueUS$18.26b
Gross ProfitUS$24.05b
ExpensesUS$16.84b
EarningsUS$7.21b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.08
Gross Margin56.85%
Net Profit Margin17.04%
Debt/Equity Ratio53.1%

How did ABT perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

44%

Payout Ratio

Valuation

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

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABT ($128.38) is trading below our estimate of fair value ($155.92)

Significantly Below Fair Value: ABT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ABT is good value based on its PE Ratio (31.5x) compared to the US Medical Equipment industry average (45.4x).

PE vs Market: ABT is poor value based on its PE Ratio (31.5x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: ABT is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: ABT is overvalued based on its PB Ratio (6.6x) compared to the US Medical Equipment industry average (3.7x).


Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABT's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: ABT's earnings (6.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ABT's revenue (2.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ABT's revenue (2.9% 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 (23.2%)


Past Performance

How has Abbott Laboratories performed over the past 5 years?

41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABT has high quality earnings.

Growing Profit Margin: ABT's current net profit margins (17%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: ABT's earnings have grown significantly by 41.4% per year over the past 5 years.

Accelerating Growth: ABT's earnings growth over the past year (115.4%) exceeds its 5-year average (41.4% per year).

Earnings vs Industry: ABT earnings growth over the past year (115.4%) exceeded the Medical Equipment industry 51.2%.


Return on Equity

High ROE: ABT's Return on Equity (20.9%) is considered high.


Financial Health

How is Abbott Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: ABT's short term assets ($23.5B) exceed its short term liabilities ($12.9B).

Long Term Liabilities: ABT's short term assets ($23.5B) do not cover its long term liabilities ($26.3B).


Debt to Equity History and Analysis

Debt Level: ABT's net debt to equity ratio (25.1%) is considered satisfactory.

Reducing Debt: ABT's debt to equity ratio has increased from 41.4% to 53.1% over the past 5 years.

Debt Coverage: ABT's debt is well covered by operating cash flow (61.2%).

Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


Dividend

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

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABT's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ABT's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 reasonably low payout ratio (44.4%), ABT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABT's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Robert Ford (47 yo)

1.75yrs

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 ($USD20.45M) is above average for companies of similar size in the US market ($USD11.11M).

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 considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ABT's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

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
  • Market Cap: US$224.113b
  • Shares outstanding: 1.77b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:31
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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