NYSE:ABT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.


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

4.0%

ABT

1.9%

US Medical Equipment

0.5%

US Market


1 Year Return

22.5%

ABT

15.6%

US Medical Equipment

6.8%

US Market

Return vs Industry: ABT exceeded the US Medical Equipment industry which returned 15.6% over the past year.

Return vs Market: ABT exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

ABTIndustryMarket
7 Day4.0%1.9%0.5%
30 Day-0.9%-2.1%-0.8%
90 Day-6.0%-0.4%-0.9%
1 Year24.5%22.5%16.6%15.6%9.2%6.8%
3 Year116.5%104.4%72.2%67.0%45.6%36.2%
5 Year116.2%95.0%125.9%100.9%63.2%45.4%

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?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABT ($82.79) is trading below our estimate of fair value ($85.41)

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 poor value based on its PE Ratio (44.6x) compared to the Medical Equipment industry average (42.2x).

PE vs Market: ABT is poor value based on its PE Ratio (44.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ABT is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ABT is overvalued based on its PB Ratio (4.6x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABT's forecast earnings growth (23.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ABT's earnings (23.8% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: ABT's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ABT's revenue (6.6% 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 (17.1%).


Next Steps

Past Performance

How has Abbott Laboratories performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABT's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: ABT's earnings growth over the past year (308.7%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: ABT earnings growth over the past year (308.7%) exceeded the Medical Equipment industry 28.2%.


Return on Equity

High ROE: ABT's Return on Equity (10.3%) is considered low.


Return on Assets

ROA vs Industry: ABT's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: ABT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Abbott Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: ABT's short term assets ($15.2B) exceeds its short term liabilities ($9.1B)

Long Term Liabilities: ABT's short term assets (15.2B) do not cover its long term liabilities (27.5B)


Debt to Equity History and Analysis

Debt Level: ABT's debt to equity ratio (60.2%) is considered high

Reducing Debt: ABT's debt to equity ratio has increased from 36.1% to 60.2% over the past 5 years.

Debt Coverage: ABT's debt is well covered by operating cash flow (29.8%).

Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: ABT has a low level of unsold assets or inventory.

Debt Coverage by Assets: ABT's 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?

1.55%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABT's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ABT's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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: With its reasonable payout ratio (69%), 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 (33.1% payout ratio).


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)

20.8yrs

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

Compensation vs. Market: Miles's total compensation ($USD24.25M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: ABT's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

66yo

Average Age

Experienced Board: ABT's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: ABT 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$175,18804 Mar 19
Hubert Allen
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,246
Max PriceUS$78.00
SellUS$86,81404 Mar 19
Roger Bird
EntityIndividual
Shares1,113
Max PriceUS$78.00
BuyUS$249,87501 Feb 19
John Stratton
EntityIndividual
Shares3,455
Max PriceUS$72.33

Ownership Breakdown


Management Team

  • Miles White (64yo)

    Chairman of the Board & CEO

    • Tenure: 20.8yrs
    • 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: 6.1yrs
  • Mary Moreland (53yo)

    Executive Vice President of Human Resources

    • Tenure: 0.2yrs
  • Melissa Brotz

    Head of Public Affairs & Divisional Vice President

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

    President & COO

    • Tenure: 1yrs
    • Compensation: US$8.13m
  • Hubert Allen (53yo)

    Executive VP

    • Tenure: 6.8yrs
    • 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: 19.8yrs
    • Compensation: US$326.98k
  • Ed Liddy (73yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$325.98k
  • Miles White (64yo)

    Chairman of the Board & CEO

    • Tenure: 20.8yrs
    • Compensation: US$24.25m
  • Bill Osborn (72yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$331.98k
  • Sam Scott (75yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$331.98k
  • Phebe Novakovic (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$315.98k
  • Nancy McKinstry (60yo)

    Independent Director

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

    Independent Director

    • Tenure: 11yrs
    • 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$146.323b
  • 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
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 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 Analysis2019/10/20 23:30
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
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.