Abbott Laboratories
Market Cap
US$158.6b
Last Updated
2020/02/16 23:30 UTC
Data Sources
Company Financials +
Executive Summary
Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with reasonable 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
Stable Share Price: ABT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
ABT
2.2%
US Medical Equipment
1.5%
US Market
1 Year Return
19.2%
ABT
22.1%
US Medical Equipment
20.1%
US Market
Return vs Industry: ABT underperformed the US Medical Equipment industry which returned 22.1% over the past year.
Return vs Market: ABT matched the US Market which returned 20.1% over the past year.
Shareholder returns
| ABT | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.2% | 1.5% |
| 30 Day | 0.7% | 1.0% | 1.4% |
| 90 Day | 6.4% | 8.7% | 8.7% |
| 1 Year | 21.1%19.2% | 23.0%22.1% | 22.7%20.1% |
| 3 Year | 112.0%100.6% | 84.6%79.4% | 50.1%40.5% |
| 5 Year | 109.2%88.8% | 117.1%94.4% | 73.1%54.1% |
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
3 days ago | Simply Wall St
Abbott Laboratories (NYSE:ABT) Seems To Use Debt Rather Sparingly1 week ago | Simply Wall St
Does Abbott Laboratories (NYSE:ABT) Create Value For Shareholders?2 weeks ago | Simply Wall St
Should You Worry About Abbott Laboratories's (NYSE:ABT) CEO Pay?Valuation
Is Abbott Laboratories undervalued compared to its fair value and its price relative to the market?
26.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABT ($89.66) is trading below our estimate of fair value ($121.58)
Significantly Below Fair Value: ABT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ABT is good value based on its PE Ratio (43.3x) compared to the Medical Equipment industry average (47.1x).
PE vs Market: ABT is poor value based on its PE Ratio (43.3x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: ABT is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: ABT is overvalued based on its PB Ratio (5x) compared to the US Medical Equipment industry average (4x).
Next Steps
Future Growth
How is Abbott Laboratories forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
20.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABT's forecast earnings growth (20.3% per year) is above the savings rate (1.7%).
Earnings vs Market: ABT's earnings (20.3% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ABT's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ABT's revenue (6.5% 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 (20.2%)
Next Steps
Past Performance
How has Abbott Laboratories performed over the past 5 years?
5.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABT has high quality earnings.
Growing Profit Margin: ABT's current net profit margins (11.6%) are higher than last year (7.6%).
Past Earnings Growth Analysis
Earnings Trend: ABT's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: ABT's earnings growth over the past year (59%) exceeds its 5-year average (5.7% per year).
Earnings vs Industry: ABT earnings growth over the past year (59%) exceeded the Medical Equipment industry 7.1%.
Return on Equity
High ROE: ABT's Return on Equity (11.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Abbott Laboratories's financial position?
Financial Position Analysis
Short Term Liabilities: ABT's short term assets ($16.1B) exceed its short term liabilities ($10.5B).
Long Term Liabilities: ABT's short term assets ($16.1B) do not cover its long term liabilities ($26.0B).
Debt to Equity History and Analysis
Debt Level: ABT's debt to equity ratio (59.6%) is considered high.
Reducing Debt: ABT's debt to equity ratio has increased from 36.2% to 59.6% over the past 5 years.
Debt Coverage: ABT's debt is well covered by operating cash flow (28.7%).
Interest Coverage: ABT's interest payments on its debt are well covered by EBIT (9x 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?
1.61%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ABT's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: ABT's dividend (1.61%) 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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.8%), 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 (38.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Miles White (64yo)
21.1yrs
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 above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Miles's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 21.1yrs | US$24.25m | 0.18% $286.4m | |
| President | 0.3yrs | US$8.13m | 0.011% $17.7m | |
| Executive VP of Finance & CFO | 4.7yrs | US$7.61m | 0.0066% $10.4m | |
| Executive VP | 7.1yrs | US$7.32m | 0.0083% $13.1m | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| VP and Chief Ethics & Compliance Officer | 0yrs | no data | no data | |
| Head of Public Affairs & Divisional Vice President | 0yrs | no data | no data | |
| Senior VP and Chief Marketing & External Affairs Officer | 5.2yrs | no data | no data | |
| Executive Vice President of Human Resources | 0.5yrs | no data | 0.0038% $6.0m | |
| Senior Vice President of Core Laboratory Diagnostics - Commercial Operations | 6.4yrs | no data | 0.013% $20.0m |
5.2yrs
Average Tenure
53yo
Average Age
Experienced Management: ABT's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 21.1yrs | US$24.25m | 0.18% $286.4m | |
| President | 0.3yrs | US$8.13m | 0.011% $17.7m | |
| Independent Director | 20.1yrs | US$326.98k | 0.00039% $618.4k | |
| Independent Director | 10.1yrs | US$325.98k | 0.00013% $206.1k | |
| Lead Independent Director | 0yrs | US$330.98k | 0.0014% $2.2m | |
| Independent Director | 13.1yrs | US$331.98k | 0.00042% $666.0k | |
| Independent Director | 13.1yrs | US$331.98k | 0.00034% $539.1k | |
| Independent Director | 10.1yrs | US$315.98k | 0.000030% $47.6k | |
| Independent Director | 11.3yrs | US$361.48k | no data | |
| Independent Director | 8.2yrs | US$332.15k | 0.00015% $237.8k |
11.3yrs
Average Tenure
66yo
Average Age
Experienced Board: ABT's board of directors are seasoned and experienced ( 11.3 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 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$158.560b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ABT | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| 0Q15 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1968 |
| ABT | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Jan 1968 |
| ABT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1968 |
| ABL | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1968 |
| ABL | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1968 |
| ABT | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | Jan 1968 |
| ABT | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 1/2 ORD NPV | AR | ARS | Sep 2000 | |
| ABTT34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 0.25 COM NPV | BR | BRL | Aug 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:30 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.