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Abbott Laboratories

NYSE:ABT
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABT
NYSE
$148B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The last earnings update was 75 days ago. More info.


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ABT Share Price and Events
7 Day Returns
-1.5%
NYSE:ABT
-0.5%
US Medical Equipment
0.8%
US Market
1 Year Returns
35.7%
NYSE:ABT
14.6%
US Medical Equipment
4.8%
US Market
ABT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Abbott Laboratories (ABT) -1.5% 1.9% 9.7% 35.7% 99.1% 95.1%
US Medical Equipment -0.5% 3.1% 6.4% 14.6% 62% 103.5%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • ABT outperformed the Medical Equipment industry which returned 14.6% over the past year.
  • ABT outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
ABT
Industry
5yr Volatility vs Market

Value

 Is Abbott Laboratories undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Abbott Laboratories to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Abbott Laboratories.

NYSE:ABT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ABT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.869 (1 + (1- 21%) (13.5%))
0.974
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.974 * 5.96%)
8.54%

Discounted Cash Flow Calculation for NYSE:ABT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Abbott Laboratories is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ABT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.54%)
2020 6,310.00 Analyst x4 5,813.65
2021 7,219.00 Analyst x3 6,127.96
2022 9,181.00 Analyst x1 7,180.40
2023 9,472.00 Analyst x1 6,825.27
2024 9,756.59 Est @ 3% 6,477.32
2025 10,041.70 Est @ 2.92% 6,142.20
2026 10,329.34 Est @ 2.86% 5,821.15
2027 10,621.06 Est @ 2.82% 5,514.72
2028 10,918.02 Est @ 2.8% 5,222.99
2029 11,221.12 Est @ 2.78% 4,945.74
Present value of next 10 years cash flows $60,071.41
NYSE:ABT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $11,221.12 × (1 + 2.73%) ÷ (8.54% – 2.73%)
$198,486.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $198,486.59 ÷ (1 + 8.54%)10
$87,483.48
NYSE:ABT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $60,071.41 + $87,483.48
$147,554.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $147,554.89 / 1,764.18
$83.64
NYSE:ABT Discount to Share Price
Calculation Result
Value per share (USD) From above. $83.64
Current discount Discount to share price of $83.81
= -1 x ($83.81 - $83.64) / $83.64
-0.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Abbott Laboratories is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Abbott Laboratories's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Abbott Laboratories's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ABT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.47
NYSE:ABT Share Price ** NYSE (2019-07-15) in USD $83.81
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 40.99x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Abbott Laboratories.

NYSE:ABT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ABT Share Price ÷ EPS (both in USD)

= 83.81 ÷ 1.47

57.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Abbott Laboratories's expected growth come at a high price?
Raw Data
NYSE:ABT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 57.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
24.6%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.32x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:ABT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 57.14x ÷ 24.6%

2.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Abbott Laboratories is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Abbott Laboratories's assets?
Raw Data
NYSE:ABT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.53
NYSE:ABT Share Price * NYSE (2019-07-15) in USD $83.81
United States of America Medical Equipment Industry PB Ratio Median Figure of 183 Publicly-Listed Medical Equipment Companies 4.34x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:ABT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ABT Share Price ÷ Book Value per Share (both in USD)

= 83.81 ÷ 17.53

4.78x

* Primary Listing of Abbott Laboratories.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Abbott Laboratories is overvalued based on assets compared to the US Medical Equipment industry average.
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Value checks
We assess Abbott Laboratories's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Abbott Laboratories has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Abbott Laboratories expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Abbott Laboratories expected to grow at an attractive rate?
  • Abbott Laboratories's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Abbott Laboratories's earnings growth is expected to exceed the United States of America market average.
  • Abbott Laboratories's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ABT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ABT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 24.6%
NYSE:ABT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 6.3%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.9%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ABT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ABT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 41,073 11,510 3
2022-12-31 38,685 11,070 5
2021-12-31 36,437 8,426 5,332 14
2020-12-31 34,203 7,850 4,435 19
2019-12-31 31,992 7,004 3,435 19
NYSE:ABT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 30,723 5,904 2,582
2018-12-31 30,578 6,300 2,319
2018-09-30 30,402 6,175 806
2018-06-30 29,575 5,997 816
2018-03-31 28,445 6,104 369
2017-12-31 27,390 5,570 344
2017-09-30 25,134 5,100 1,971
2017-06-30 23,607 4,312 1,055
2017-03-31 22,303 3,870 1,384
2016-12-31 20,853 3,203 1,056
2016-09-30 20,708 2,861 989
2016-06-30 20,556 2,839 1,939

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Abbott Laboratories's earnings are expected to grow significantly at over 20% yearly.
  • Abbott Laboratories's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ABT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Abbott Laboratories Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ABT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 3.28 3.28 3.28 1.00
2021-12-31 2.85 3.52 2.24 5.00
2020-12-31 2.50 3.32 1.84 9.00
2019-12-31 1.98 2.34 1.68 9.00
NYSE:ABT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.47
2018-12-31 1.32
2018-09-30 0.46
2018-06-30 0.47
2018-03-31 0.21
2017-12-31 0.20
2017-09-30 1.18
2017-06-30 0.66
2017-03-31 0.90
2016-12-31 0.71
2016-09-30 0.67
2016-06-30 1.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Abbott Laboratories is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Abbott Laboratories's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Abbott Laboratories has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Abbott Laboratories performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Abbott Laboratories's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (599.7% vs -8.7%)
  • Abbott Laboratories's earnings growth has exceeded the US Medical Equipment industry average in the past year (599.7% vs 31.9%).
Earnings and Revenue History
Abbott Laboratories's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Abbott Laboratories Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ABT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 30,723.00 2,582.00 9,431.00 2,369.00
2018-12-31 30,578.00 2,319.00 9,531.00 2,288.00
2018-09-30 30,402.00 806.00 9,566.00 2,280.00
2018-06-30 29,575.00 816.00 9,184.00 2,274.00
2018-03-31 28,445.00 369.00 8,868.00 2,219.00
2017-12-31 27,390.00 344.00 8,804.00 2,183.00
2017-09-30 25,134.00 1,971.00 8,175.00 1,979.00
2017-06-30 23,607.00 1,055.00 7,808.00 1,763.00
2017-03-31 22,303.00 1,384.00 7,395.00 1,575.00
2016-12-31 20,853.00 1,056.00 6,558.00 1,442.00
2016-09-30 20,708.00 989.00 6,620.00 1,353.00
2016-06-30 20,556.00 1,939.00 6,658.00 1,379.00
2016-03-31 20,393.00 2,124.00 6,648.00 1,392.00
2015-12-31 20,405.00 2,586.00 6,742.00 1,371.00
2015-09-30 20,573.00 2,523.00 6,593.00 1,338.00
2015-06-30 20,502.00 2,365.00 6,522.00 1,265.00
2015-03-31 20,389.00 2,004.00 6,444.00 1,230.00
2014-12-31 20,247.00 1,710.00 6,327.00 1,286.00
2014-09-30 19,905.00 1,560.00 6,373.00 1,343.00
2014-06-30 19,651.00 1,762.00 6,390.00 1,377.00
2014-03-31 19,034.00 1,654.00 6,174.00 1,394.00
2013-12-31 19,657.00 1,970.00 6,340.00 1,371.00
2013-09-30 20,275.23 960.56 6,698.23 1,472.03
2013-06-30 20,715.02 647.68 6,888.35 1,482.68
2013-03-31 21,588.32 731.91 7,268.97 1,526.29
2012-12-31 19,050.00 191.00 6,687.00 1,392.00
2012-09-30 26,239.22 2,674.44 8,363.27 2,184.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Abbott Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Abbott Laboratories used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Abbott Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Abbott Laboratories's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Abbott Laboratories has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Abbott Laboratories's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Abbott Laboratories's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Abbott Laboratories's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Abbott Laboratories Company Filings, last reported 3 months ago.

NYSE:ABT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 31,129.00 19,111.00 3,261.00
2018-12-31 30,722.00 19,566.00 4,086.00
2018-09-30 30,898.00 23,830.00 7,550.00
2018-06-30 30,774.00 20,900.00 3,264.00
2018-03-31 31,601.00 22,090.00 4,042.00
2017-12-31 31,098.00 27,924.00 9,610.00
2017-09-30 32,218.00 24,078.00 11,199.00
2017-06-30 31,788.00 24,090.00 9,835.00
2017-03-31 31,547.00 24,066.00 8,860.00
2016-12-31 20,717.00 22,006.00 18,775.00
2016-09-30 20,896.00 8,510.00 4,507.00
2016-06-30 20,795.00 8,912.00 4,438.00
2016-03-31 20,842.00 8,590.00 3,957.00
2015-12-31 21,326.00 9,001.00 6,125.00
2015-09-30 21,219.00 8,355.00 6,139.00
2015-06-30 23,126.00 8,778.00 11,177.00
2015-03-31 21,988.00 8,903.00 9,849.00
2014-12-31 21,639.00 7,830.00 4,460.00
2014-09-30 22,993.00 8,301.00 4,877.00
2014-06-30 23,704.00 7,365.00 7,062.00
2014-03-31 23,489.00 7,765.00 7,047.00
2013-12-31 25,267.00 6,561.00 8,098.00
2013-09-30 23,787.93 8,262.95 8,605.48
2013-06-30 22,427.65 7,934.54 9,393.59
2013-03-31 22,683.28 7,102.43 8,517.31
2012-12-31 26,813.00 20,476.00 15,174.00
2012-09-30 27,104.34 16,279.63 11,504.52
  • Abbott Laboratories's level of debt (61.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33% vs 61.4% today).
  • Debt is well covered by operating cash flow (30.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
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Financial health checks
We assess Abbott Laboratories's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Abbott Laboratories has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.53%
Current annual income from Abbott Laboratories dividends. Estimated to be 1.57% next year.
If you bought $2,000 of Abbott Laboratories shares you are expected to receive $31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Abbott Laboratories's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Abbott Laboratories's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ABT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ABT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.47 4.00
2020-12-31 1.32 8.00
2019-12-31 1.23 8.00
NYSE:ABT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-14 1.280 1.518
2019-02-22 1.280 1.643
2018-12-14 1.280 1.802
2018-09-13 1.120 1.592
2018-06-08 1.120 1.750
2018-02-16 1.120 1.853
2017-12-15 1.120 1.901
2017-09-14 1.060 1.941
2017-06-09 1.060 2.147
2017-02-17 1.060 2.378
2016-12-09 1.060 2.613
2016-09-15 1.040 2.581
2016-06-10 1.040 2.490
2016-02-19 1.040 2.595
2015-12-11 1.040 2.550
2015-09-17 0.960 2.208
2015-06-12 0.960 1.994
2015-02-20 0.960 2.022
2014-12-12 0.960 2.132
2014-09-11 0.880 2.045
2014-06-13 0.880 2.102
2014-02-21 0.880 2.253
2014-01-22 0.880 2.356
2013-02-15 0.560 1.552
2013-01-23 1.670 4.940
2012-09-13 2.040 3.591
2012-06-08 2.040 3.139
2012-02-17 2.040 3.390
2011-12-09 1.920 3.468
2011-09-15 1.920 3.633
2011-06-10 1.920 3.743
2011-02-18 1.920 3.812
2010-12-10 1.760 3.735
2010-09-16 1.760 3.495
2010-06-11 1.760 3.587
2010-02-19 1.760 3.443
2009-12-11 1.600 2.945
2009-09-17 1.600 3.123
2009-06-12 1.600 3.507
2009-02-20 1.600 3.529
2008-12-12 1.440 2.712
2008-09-12 1.440 2.627

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Abbott Laboratories's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Abbott Laboratories's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Abbott Laboratories afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Abbott Laboratories has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Miles White
COMPENSATION $24,254,238
AGE 64
TENURE AS CEO 20.5 years
CEO Bio

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 and Chief Executive Officer at Abbott Laboratories Limited since 1999. He joined Abbott in 1984. He serves as the Chairman and Chief Executive Officer at Abbott Laboratories, Limited. He served as an Executive Vice President of Abbott from 1998 to 1999. He served as Senior Vice President of Diagnostic Operations at Abbott Laboratories, a holding company of Medisense Inc. from 1994 to 1998 and also it’s Vice President of Diagnostics Systems Operations from 1993 to 1994. From 1992 to 1993, he served as a Divisional Vice President and General Manager of Diagnostic Systems and Operations at Abbott Laboratories and prior to 1992, he served as a Divisional Vice President and General Manager of Hospital Laboratory Sector. Prior to joining Abbott, he served as Management Consultant with McKinsey & Co. He serves as the Chairman of the Dean’s Advisory Board at Kellogg School of Management. He served as the Chairman of The Federal Reserve Bank of Chicago from 2006 to 2007 and also served as its Director. He serves as Vice Chairman of the Chicago 2016 Board of Directors. He has been a Director of Abbott Laboratories since 1998. He serves as Director of The Executives’ Club of Chicago. He serves as a Director of Abbott Vascular, Inc and Abbott Diagnostics. He has been an Independent Director of McDonald's Corporation since April 2009 and Director of Caterpillar Inc. since January 1, 2011. He serves as a Member of Board of Investors of Merrick Ventures, LLC. He served as an Independent Director of Tribune Company from July 20, 2005 to August 7, 2007. He served as a Director of Motorola Solutions, Inc. (Motorola Inc.) from October 1, 2005 to May 4, 2009. He served as a Director at MediSense Inc. He serves as a Member of The International Advisory Council of the Guanghua School of Management at Peking University and the Stanford Graduate School of Business Advisory Council. As an Active Member of the Civic and Business Communities, he serves as Vice Chairman of the Board of Trustees for The Field Museum in Chicago of which he is immediate past chair. He served as the Chairman of The Economic Club of Chicago, the Chairman of The Executives' Club of Chicago, immediate past Chair of The Pharmaceutical Research and Manufacturers of America and a Member of the Civic Committee of The Commercial Club of Chicago, the Culver Educational Foundation, The Stanford Graduate School of Business Advisory Council and The Stanford Advisory Council on Interdisciplinary Biosciences. He also is on the Board of Trustees for Northwestern University, The Joffrey Ballet of Chicago and The Culver Educational Foundation. He served as an Independent Director of Tribune Media Company from July 20, 2005 to August 6, 2007. Mr. White holds an MBA and Bachelor's Degree (BS) in Mechanical Engineering from Stanford University.

CEO Compensation
  • Miles's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Miles's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Abbott Laboratories management team in years:

5.8
Average Tenure
56.5
Average Age
  • The average tenure for the Abbott Laboratories management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Miles White

TITLE
Chairman of the Board & CEO
COMPENSATION
$24M
AGE
64
TENURE
20.5 yrs

Robert Ford

TITLE
President & COO
COMPENSATION
$8M
AGE
45
TENURE
0.8 yrs

Brian Yoor

TITLE
Executive VP of Finance & CFO
COMPENSATION
$8M
AGE
49
TENURE
4.1 yrs

Hubert Allen

TITLE
Executive VP
COMPENSATION
$7M
AGE
53
TENURE
6.5 yrs

Steve Fussell

TITLE
Executive Vice President of Human Resources
COMPENSATION
$7M
AGE
62
TENURE
6.4 yrs

Scott Leinenweber

TITLE
Vice President of Investor Relations
AGE
48

James Young

TITLE
VP and Chief Ethics & Compliance Officer

Melissa Brotz

TITLE
Head of Public Affairs & Divisional Vice President

Elaine Leavenworth

TITLE
Senior VP and Chief Marketing & External Affairs Officer
AGE
60
TENURE
4.6 yrs

Jaime Contreras

TITLE
Senior Vice President of Core Laboratory Diagnostics - Commercial Operations
AGE
62
TENURE
5.8 yrs
Board of Directors Tenure

Average tenure and age of the Abbott Laboratories board of directors in years:

10.8
Average Tenure
66
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.
Board of Directors

Miles White

TITLE
Chairman of the Board & CEO
COMPENSATION
$24M
AGE
64
TENURE
20.5 yrs

Roxanne Austin

TITLE
Independent Director
COMPENSATION
$327K
AGE
58
TENURE
19.5 yrs

Bill Osborn

TITLE
Lead Independent Director
COMPENSATION
$331K
AGE
72

Ed Liddy

TITLE
Independent Director
COMPENSATION
$326K
AGE
73
TENURE
9.5 yrs

Glenn Tilton

TITLE
Independent Director
COMPENSATION
$332K
AGE
71
TENURE
12.5 yrs

Sam Scott

TITLE
Independent Director
COMPENSATION
$332K
AGE
75
TENURE
12.5 yrs

Robert Alpern

TITLE
Independent Director
COMPENSATION
$361K
AGE
68
TENURE
10.8 yrs

Phebe Novakovic

TITLE
Independent Director
COMPENSATION
$316K
AGE
61
TENURE
9.5 yrs

Sally Blount

TITLE
Independent Director
COMPENSATION
$332K
AGE
57
TENURE
7.6 yrs

Nancy McKinstry

TITLE
Independent Director
COMPENSATION
$317K
AGE
60
TENURE
7.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Abbott Laboratories individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Apr 19 Buy Randel Woodgrift Individual 22. Apr 19 22. Apr 19 2,000 $73.40 $146,798
21. Mar 19 Sell Joseph Manning Individual 20. Mar 19 20. Mar 19 -5,613 $79.58 $-446,665
14. Mar 19 Sell Roger Bird Individual 13. Mar 19 13. Mar 19 -9,188 $79.07 $-726,416
08. Mar 19 Sell Sharon Bracken Individual 06. Mar 19 06. Mar 19 -5,500 $77.84 $-428,074
04. Mar 19 Sell Joseph Manning Individual 01. Mar 19 01. Mar 19 -1,223 $78.00 $-95,394
04. Mar 19 Sell Jaime Contreras Individual 01. Mar 19 01. Mar 19 -12,561 $78.31 $-983,286
04. Mar 19 Sell Robert Funck Individual 01. Mar 19 01. Mar 19 -1,002 $78.00 $-78,156
04. Mar 19 Sell Brian Yoor Individual 01. Mar 19 01. Mar 19 -2,246 $78.00 $-175,188
04. Mar 19 Sell Jared Watkin Individual 01. Mar 19 01. Mar 19 -1,391 $78.00 $-108,498
04. Mar 19 Sell Daniel Salvadori Individual 01. Mar 19 01. Mar 19 -1,664 $78.00 $-129,792
04. Mar 19 Sell Stephen Fussell Individual 01. Mar 19 01. Mar 19 -2,246 $78.00 $-175,188
04. Mar 19 Sell Charles Brynelsen Individual 01. Mar 19 01. Mar 19 -1,002 $78.00 $-78,156
04. Mar 19 Sell Sharon Bracken Individual 01. Mar 19 01. Mar 19 -1,224 $78.00 $-95,472
04. Mar 19 Sell Brian Blaser Individual 01. Mar 19 01. Mar 19 -16,155 $78.25 $-1,263,737
04. Mar 19 Sell Roger Bird Individual 01. Mar 19 01. Mar 19 -1,113 $78.00 $-86,814
04. Mar 19 Sell Hubert Allen Individual 01. Mar 19 01. Mar 19 -2,246 $78.00 $-175,188
01. Feb 19 Buy John Stratton Individual 31. Jan 19 31. Jan 19 3,455 $72.33 $249,875
02. Oct 18 Sell Sharon Bracken Individual 28. Sep 18 28. Sep 18 -1,732 $73.36 $-127,044
02. Oct 18 Sell Daniel Salvadori Individual 28. Sep 18 28. Sep 18 -5,000 $73.40 $-366,957
31. Aug 18 Sell Andrew Lane Individual 29. Aug 18 29. Aug 18 -9,097 $67.12 $-610,513
31. Jul 18 Sell Sharon Bracken Individual 30. Jul 18 30. Jul 18 -615 $65.16 $-40,073
26. Jul 18 Sell Brian Blaser Individual 24. Jul 18 24. Jul 18 -15,100 $63.99 $-965,789
X
Management checks
We assess Abbott Laboratories's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Abbott Laboratories has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

2 Days Left Until Abbott Laboratories (NYSE:ABT) Trades Ex-Dividend

So we need to check whether the dividend payments are covered, and if earnings are growing. … It's positive to see that Abbott Laboratories's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Earnings per share growth has been modest and Abbott Laboratories paid out over half of its profits and less than half of its free cash flow, although both payout ratios are within normal limits.

Simply Wall St -

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

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $4.92k $6.66k $7.69k $9.18k $9.47k $9.76k $10.04k $10.33k $10.62k $10.92k Growth Rate Estimate Source Analyst x5 Analyst x4 Analyst x3 Analyst x1 Analyst x1 Est @ 3% Est @ 2.92% Est @ 2.86% Est @ 2.82% Est @ 2.8% Present Value ($, Millions) Discounted @ 8.47% $4.54k $5.66k $6.02k $6.63k $6.31k $5.99k $5.68k $5.39k $5.11k $4.84k Present Value of 10-year Cash Flow (PVCF)= $56.17b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$11b × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$195b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$195b ÷ ( 1 + 8.5%)10 = $86.65b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $142.82b. … NYSE:ABT Intrinsic value, June 14th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Type Of Shareholder Owns Abbott Laboratories's (NYSE:ABT)?

See our latest analysis for Abbott Laboratories NYSE:ABT Ownership Summary, June 3rd 2019 What Does The Institutional Ownership Tell Us About Abbott Laboratories? … We can see that Abbott Laboratories does have institutional investors; and they hold 76% of the stock. … Insider Ownership Of Abbott Laboratories While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Did Abbott Laboratories (NYSE:ABT) Use Debt To Deliver Its ROE Of 8.3%?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Abbott Laboratories: 8.3% = US$2.6b ÷ US$31b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Abbott Laboratories Have A Good Return On Equity? … Careful use of debt to boost returns is often very good for shareholders.

Simply Wall St -

Did You Miss Abbott Laboratories's (NYSE:ABT) Impressive 107% Share Price Gain?

For example, the Abbott Laboratories (NYSE:ABT) share price has soared 107% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Abbott Laboratories was able to grow its EPS at 0.9% per year over three years, sending the share price higher.

Simply Wall St -

Here's Why We Think Abbott Laboratories (NYSE:ABT) Is Well Worth Watching

How Fast Is Abbott Laboratories Growing Its Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Abbott Laboratories shareholders can take confidence from the fact that EBIT margins are up from 11% to 13%, and revenue is growing.

Simply Wall St -

Abbott Laboratories (NYSE:ABT): Ex-Dividend Is In 1 Days

Important news for shareholders and potential investors in Abbott Laboratories (NYSE:ABT): The dividend payment of US$0.32 per share will be distributed to shareholders on 15 May 2019, and the stock will begin trading ex-dividend at an earlier date, 12 April 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Abbott Laboratories's latest financial data to analyse its dividend attributes. … Based on future earnings growth, will it be able to continue to payout dividend at the current rate

Simply Wall St -

Should Abbott Laboratories’s (NYSE:ABT) Weak Investment Returns Worry You?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Abbott Laboratories (NYSE:ABT) A Smart Choice For Dividend Investors?

Historically, Abbott Laboratories (NYSE:ABT) has paid a dividend to shareholders. … Does Abbott Laboratories tick all the boxes of a great dividend stock? … Check out our latest analysis for Abbott Laboratories

Simply Wall St -

At US$76.80, Is It Time To Put Abbott Laboratories (NYSE:ABT) On Your Watch List?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Company Info

Description

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company’s Established Pharmaceutical Products segment offers branded generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency; irritable bowel syndrome or biliary spasm; intrahepatic cholestasis or depressive symptom; gynecological disorder; hormone replacement therapy; dyslipidemia; hypertension; hypothyroidism; Ménière's disease and vestibular vertigo; pain, fever, and inflammation; migraine; and anti-infective clarithromycin, as well as provides influenza vaccines and products that regulate physiological rhythm of the colon. Its Diagnostic Products segment offers core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automates the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detects and measures infectious agents; cartridges for blood analysis; rapid diagnostics systems for infectious diseases; molecular point-of-care care testing for HIV, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test systems, as well as remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The company’s Nutritional Products segment provides pediatric and adult nutritional products. Its Cardiovascular and Neuromodulation Products segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases, as well as neuromodulation devices for the management of chronic pain and movement disorders. The company also provides glucose and blood glucose monitoring systems, including test strips, sensors, data management decision software, and accessories for people with diabetes. The company was founded in 1888 and is headquartered in Abbott Park, Illinois.

Details
Name: Abbott Laboratories
ABT
Exchange: NYSE
Founded: 1888
$147,856,031,568
1,764,181,262
Website: http://www.abbott.com
Address: Abbott Laboratories
100 Abbott Park Road,
Abbott Park,
Illinois, 60064,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ABT Common Shares New York Stock Exchange US USD 02. Jan 1968
DB ABL Common Shares Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA ABL Common Shares XETRA Trading Platform DE EUR 02. Jan 1968
SWX ABT Common Shares SIX Swiss Exchange CH CHF 02. Jan 1968
SNSE ABT Common Shares Santiago Stock Exchange CL USD 02. Jan 1968
BMV ABT * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA ABTT34 BDR EACH REPR 0.25 COM NPV Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
BASE ABT CEDEAR EACH REP 1/2 ORD NPV Buenos Aires Stock Exchange AR ARS 12. Sep 2000
Number of employees
Current staff
Staff numbers
103,000
Abbott Laboratories employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:31
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.