NYSE:ABT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

ABT

-1.8%

US Medical Equipment

-0.04%

US Market


1 Year Return

14.0%

ABT

14.6%

US Medical Equipment

17.1%

US Market

Return vs Industry: ABT matched the US Medical Equipment industry which returned 14.9% over the past year.

Return vs Market: ABT underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

ABTIndustryMarket
7 Day-0.9%-1.8%-0.04%
30 Day6.5%7.4%5.1%
90 Day7.5%12.2%19.5%
1 Year15.9%14.0%15.6%14.6%19.6%17.1%
3 Year113.7%102.9%71.9%67.3%42.5%33.3%
5 Year117.2%96.4%117.0%100.2%75.1%56.2%

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?

57.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABT ($99.06) is trading above our estimate of fair value ($88.22)

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


Price To Earnings Ratio

PE vs Industry: ABT is poor value based on its PE Ratio (57.1x) compared to the US Medical Equipment industry average (51.4x).

PE vs Market: ABT is poor value based on its PE Ratio (57.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABT is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: ABT is overvalued based on its PB Ratio (5.7x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Abbott Laboratories forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABT's forecast earnings growth (23.5% per year) is above the savings rate (2.2%).

Earnings vs Market: ABT's earnings (23.5% per year) are forecast to grow slower than the US market (24% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ABT's revenue (8.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ABT's revenue (8.2% 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 low in 3 years time (18%).


Next Steps

Past Performance

How has Abbott Laboratories performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABT has high quality earnings.

Growing Profit Margin: ABT's current net profit margins (9.8%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: ABT's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ABT's earnings growth over the past year (7%) is below its 5-year average (12.5% per year).

Earnings vs Industry: ABT earnings growth over the past year (7%) exceeded the Medical Equipment industry -0.2%.


Return on Equity

High ROE: ABT's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Abbott Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: ABT's short term assets ($17.2B) exceed its short term liabilities ($11.0B).

Long Term Liabilities: ABT's short term assets ($17.2B) do not cover its long term liabilities ($27.0B).


Debt to Equity History and Analysis

Debt Level: ABT's debt to equity ratio (60.8%) is considered high.

Reducing Debt: ABT's debt to equity ratio has increased from 38% to 60.8% over the past 5 years.

Debt Coverage: ABT's debt is well covered by operating cash flow (34.2%).

Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABT's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: ABT's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.7%), ABT's 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 (35.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Robert Ford (46 yo)

0.42

Tenure

US$11,897,886

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD11.90M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Miles White
Executive Chairman21.58yrsUS$27.80m0.18%
$ 318.5m
Robert Ford
CEO, President0.42yrUS$11.90m0.014%
$ 24.3m
Daniel Salvadori
Executive Vice President of Nutritional Products5.92yrsUS$6.77m0.0058%
$ 10.2m
Lisa Earnhardt
Executive Vice President of Medical Devices1.58yrsUS$7.48m0.0026%
$ 4.5m
Robert Funck
Executive VP of Finance & CFO0.42yrno data0.011%
$ 19.9m
Scott Leinenweber
Vice President of Investor Relationsno datano datano data
Hubert Allen
Executive VP7.58yrsUS$7.32m0.0086%
$ 15.0m
James Young
VP and Chief Ethics & Compliance Officerno datano datano data
Melissa Brotz
Head of Public Affairs & Divisional Vice Presidentno datano datano data
Elaine Leavenworth
Senior VP and Chief Marketing & External Affairs Officer5.67yrsno datano data
Mary Moreland
Executive Vice President of Human Resources1yrno data0.0043%
$ 7.5m
Jaime Contreras
Senior Vice President of Core Laboratory Diagnostics - Commercial Operations6.92yrsno data0.014%
$ 25.0m

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: ABT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Miles White
Executive Chairman21.58yrsUS$27.80m0.18%
$ 318.5m
Robert Ford
CEO, President0.42yrUS$11.90m0.014%
$ 24.3m
Roxanne Austin
Independent Director20.58yrsUS$326.91kno data
Edward Liddy
Independent Director10.58yrsUS$325.91k0.00013%
$ 228.0k
William Osborn
Lead Independent Directorno dataUS$330.91k0.0014%
$ 2.4m
Daniel Starks
Independent Director3.5yrsUS$300.91k0.40%
$ 694.4m
Glenn Tilton
Independent Director13.58yrsUS$331.91k0.00042%
$ 736.6k
John Stratton
Independent Director3.58yrsUS$300.91k0.00020%
$ 350.8k
Phebe Novakovic
Independent Director10.58yrsUS$315.91k0.00019%
$ 333.2k
Nancy McKinstry
Independent Director8.67yrsUS$306.91kno data
Robert Alpern
Independent Director11.83yrsUS$390.23kno data
Sally Blount
Independent Director8.67yrsUS$336.27k0.00015%
$ 263.1k

10.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ABT's board of directors are seasoned and experienced ( 10.6 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

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$175.389b
  • 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

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
ABTBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/2 ORD NPVARARSSep 2000
ABTT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REP 1 COMBRBRLAug 2012

Biography

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. Its Established Pharmaceutical Products segment offers generic pharmaceuticals for the treatment of pancreat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 23:59
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.