NYSE:ABT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential 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


Market Performance


7 Day Return

-0.8%

ABT

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

21.0%

ABT

9.9%

US Medical Equipment

0.6%

US Market

ABT outperformed the Medical Equipment industry which returned 9.5% over the past year.

ABT outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

ABTIndustryMarket
7 Day-0.8%1.1%-0.6%
30 Day-1.6%0.6%2.2%
90 Day-1.7%2.9%1.1%
1 Year23.1%21.0%10.8%9.9%2.9%0.6%
3 Year110.3%98.1%70.1%64.9%44.6%35.2%
5 Year120.9%99.0%138.9%111.8%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

1%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Abbott Laboratories's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Abbott Laboratories's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Abbott Laboratories is overvalued based on earnings compared to the US Medical Equipment industry average.

Abbott Laboratories is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Abbott Laboratories is poor value based on expected growth next year.


Price Based on Value of Assets

Abbott Laboratories is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

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

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Abbott Laboratories's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Abbott Laboratories's earnings are expected to grow significantly at over 20% yearly.

Abbott Laboratories's revenue growth is positive but not above the United States of America market average.

Abbott Laboratories's earnings growth is expected to exceed the United States of America market average.

Abbott Laboratories's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Abbott Laboratories is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Abbott Laboratories performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Abbott Laboratories's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Abbott Laboratories's 1-year earnings growth exceeds its 5-year average (253.1% vs -4.4%)

Abbott Laboratories's earnings growth has exceeded the US Medical Equipment industry average in the past year (253.1% vs 28.2%).


Return on Equity

Abbott Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Abbott Laboratories used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Abbott Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Abbott Laboratories's financial position?


Financial Position Analysis

Abbott Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Abbott Laboratories's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Abbott Laboratories's level of debt (60.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (31.1% vs 60.2% today).

Debt is well covered by operating cash flow (29.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

1.60%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Abbott Laboratories before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Abbott Laboratories's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Abbott Laboratories's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Abbott Laboratories's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Miles White (64yo)

20.7yrs

Tenure

US$24,254,238

Compensation

Mr. Miles D. White serves as the Chairman and Chief Executive Officer at Abbott Laboratories (Singapore) Pte. Ltd. He serves as the Chairman of Abbott Healthcare Pvt. Ltd. Mr. White has been the Chairman a ...


CEO Compensation Analysis

Miles's remuneration is higher than average for companies of similar size in United States of America.

Miles's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

The tenure for the Abbott Laboratories management team is about average.


Board Age and Tenure

10.9yrs

Average Tenure

66yo

Average Age

The average tenure for the Abbott Laboratories board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Abbott Laboratories individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$219,12102 Aug 19
Sally Blount
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$87.65
BuyUS$146,79824 Apr 19
Randel Woodgrift
EntityIndividual
Shares2,000
Max PriceUS$73.40
SellUS$446,66521 Mar 19
Joseph Manning
EntityIndividual
Shares5,613
Max PriceUS$79.58
SellUS$726,41614 Mar 19
Roger Bird
EntityIndividual
Shares9,188
Max PriceUS$79.07
SellUS$428,07408 Mar 19
Sharon Bracken
EntityIndividual
Shares5,500
Max PriceUS$77.84
SellUS$175,18804 Mar 19
Brian Yoor
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & CFO
Shares2,246
Max PriceUS$78.00
SellUS$108,49804 Mar 19
Jared Watkin
EntityIndividual
Shares1,391
Max PriceUS$78.00
SellUS$129,79204 Mar 19
Daniel Salvadori
EntityIndividual
Shares1,664
Max PriceUS$78.00
SellUS$95,39404 Mar 19
Joseph Manning
EntityIndividual
Shares1,223
Max PriceUS$78.00
SellUS$175,18804 Mar 19
Stephen Fussell
EntityIndividual
Shares2,246
Max PriceUS$78.00
SellUS$78,15604 Mar 19
Robert Funck
EntityIndividual
Shares1,002
Max PriceUS$78.00
SellUS$983,28604 Mar 19
Jaime Contreras
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Core Laboratory Diagnostics - Commercial Operations
Shares12,561
Max PriceUS$78.31
SellUS$78,15604 Mar 19
Charles Brynelsen
EntityIndividual
Shares1,002
Max PriceUS$78.00
SellUS$95,47204 Mar 19
Sharon Bracken
EntityIndividual
Shares1,224
Max PriceUS$78.00
SellUS$1,263,73704 Mar 19
Brian Blaser
EntityIndividual
Shares16,155
Max PriceUS$78.25
SellUS$86,81404 Mar 19
Roger Bird
EntityIndividual
Shares1,113
Max PriceUS$78.00
SellUS$175,18804 Mar 19
Hubert Allen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,246
Max PriceUS$78.00
BuyUS$249,87501 Feb 19
John Stratton
EntityIndividual
Shares3,455
Max PriceUS$72.33
SellUS$127,04402 Oct 18
Sharon Bracken
EntityIndividual
Shares1,732
Max PriceUS$73.36
SellUS$366,95702 Oct 18
Daniel Salvadori
EntityIndividual
Shares5,000
Max PriceUS$73.40

Ownership Breakdown


Management Team

  • Miles White (64yo)

    Chairman of the Board & CEO

    • Tenure: 20.7yrs
    • Compensation: US$24.25m
  • Elaine Leavenworth (60yo)

    Senior VP and Chief Marketing & External Affairs Officer

    • Tenure: 4.8yrs
  • Jaime Contreras (62yo)

    Senior Vice President of Core Laboratory Diagnostics - Commercial Operations

    • Tenure: 6yrs
  • Mary Moreland (53yo)

    Executive Vice President of Human Resources

    • Tenure: 0.08yrs
  • Melissa Brotz

    Head of Public Affairs & Divisional Vice President

    • Tenure: 0yrs
  • Robert Ford (45yo)

    President & COO

    • Tenure: 0.9yrs
    • Compensation: US$8.13m
  • Hubert Allen (53yo)

    Executive VP

    • Tenure: 6.7yrs
    • Compensation: US$7.32m
  • Brian Yoor (49yo)

    Executive VP of Finance & CFO

    • Tenure: 4.3yrs
    • Compensation: US$7.61m
  • Scott Leinenweber (47yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • James Young

    VP and Chief Ethics & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Roxanne Austin (58yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$326.98k
  • Ed Liddy (73yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$325.98k
  • Miles White (64yo)

    Chairman of the Board & CEO

    • Tenure: 20.7yrs
    • Compensation: US$24.25m
  • Bill Osborn (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$330.98k
  • Glenn Tilton (71yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$331.98k
  • Sam Scott (75yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$331.98k
  • Phebe Novakovic (61yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$315.98k
  • Nancy McKinstry (60yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$316.98k
  • Robert Alpern (68yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$361.48k
  • Sally Blount (57yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$332.15k

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$147.719b
  • Shares outstanding: 1.77b
  • Website: https://www.abbott.com

Number of Employees


Location

  • Abbott Laboratories
  • 100 Abbott Park Road
  • Abbott Park
  • Illinois
  • 60064
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABTNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 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 REPR 0.25 COM NPVBRBRLAug 2012

Biography

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company’s Established Pharmaceutical Products segment offers branded generic pharmaceuticals for the tre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:30
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.