AbbVie
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The last earnings update was 108 days ago. More info.
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ABBV Share Price and Events
Value
Is AbbVie 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
AbbVie
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for AbbVie.
| 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 | 11.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Biotechs Unlevered Beta | Simply Wall St/ S&P Global | 1.04 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.043 (1 + (1- 21%) (25.99%)) |
1.257 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.26 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.257 * 7.05%) |
11.82% |
Discounted Cash Flow Calculation for NYSE:ABBV using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for AbbVie is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Levered FCF (USD, Millions) | 11,435.55 | 13,085.71 | 13,964.37 | 16,950.00 | 17,164.00 |
| Source | Analyst x7 | Analyst x6 | Analyst x4 | Analyst x1 | Analyst x1 |
|
Present Value Discounted (@ 11.82%) |
10,227.19 | 10,466.36 | 9,988.93 | 10,843.43 | 9,820.07 |
| Present value of next 5 years cash flows | $51,346 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2022
× (1 + g) ÷ (Discount Rate – g)
= $17,164 × (1 + 2.95%) ÷ (11.82% – 2.95%) |
$199,323 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $199,323 ÷ (1 + 11.82%)5 |
$114,039 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $51,346 + $114,039 |
$165,385 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $165,385 / 1,514 |
$109.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $109.23 |
| Current discount | Discount to share price of
$95.41
= -1 x ($95.41 - $109.23) / $109.23 |
12.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- AbbVie's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- AbbVie's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 AbbVie's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
AbbVie's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings () in USD | $3.98 |
| NYSE:ABBV Share Price ** | NYSE (2018-07-17) in USD | $95.41 |
| United States of America Biotechs Industry PE Ratio | Median Figure of 72 Publicly-Listed Biotechs Companies | 27.67x |
| United States of America Market PE Ratio | Median Figure of 7,808 Publicly-Listed Companies | 18.38x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of AbbVie.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ABBV Share Price ÷ EPS (both in USD) = 95.41 ÷ 3.98 |
23.95x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AbbVie is good value based on earnings compared to the US Biotechs industry average.
- AbbVie is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
AbbVie's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 23.95x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts |
10.7%per year |
| United States of America Biotechs Industry PEG Ratio | Median Figure of 52 Publicly-Listed Biotechs Companies | 1.7x |
| United States of America Market PEG Ratio | Median Figure of 5,905 Publicly-Listed Companies | 1.6x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 23.95x ÷ 10.7% |
2.23x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AbbVie is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
AbbVie's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings () in USD | $2.24 |
| NYSE:ABBV Share Price * | NYSE (2018-07-17) in USD | $95.41 |
| United States of America Biotechs Industry PB Ratio | Median Figure of 580 Publicly-Listed Biotechs Companies | 4.26x |
| United States of America Market PB Ratio | Median Figure of 13,225 Publicly-Listed Companies | 1.73x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ABBV Share Price ÷ Book Value per Share (both in USD) = 95.41 ÷ 2.24 |
42.61x |
* Primary Listing of AbbVie.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- AbbVie is overvalued based on assets compared to the US Biotechs industry average.
Value checks
We assess AbbVie's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check) AbbVie has a total score of 1/6, 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 AbbVie 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!
Earnings growth vs Low Risk Savings
- AbbVie's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- AbbVie's earnings growth is positive but not above the United States of America market average.
- AbbVie's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ABBV Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts | 10.7% |
| NYSE:ABBV Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts | 6.5% |
| United States of America Biotechs Industry Earnings Growth Rate | Market Cap Weighted Average | 23.6% |
| United States of America Biotechs Industry Revenue Growth Rate | Market Cap Weighted Average | 15.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 11.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 6.2% |
*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
| 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 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 42,071 | 20,297 | 15,274 | 11 |
| 2021-12-31 | 39,628 | 18,348 | 14,440 | 11 |
| 2020-12-31 | 36,797 | 15,573 | 12,728 | 15 |
| 2019-12-31 | 34,562 | 13,907 | 11,788 | 18 |
| 2018-12-31 | 32,941 | 12,390 | 10,794 | 19 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-03-31 | 29,612 | 10,503 | 6,352 |
| 2017-12-31 | 28,216 | 9,960 | 5,283 |
| 2017-09-30 | 27,273 | 8,917 | 6,615 |
| 2017-06-30 | 26,710 | 7,100 | 6,582 |
| 2017-03-31 | 26,218 | 7,015 | 6,278 |
| 2016-12-31 | 25,638 | 7,041 | 5,923 |
| 2016-09-30 | 25,242 | 7,463 | 6,048 |
| 2016-06-30 | 24,754 | 8,164 | 5,690 |
| 2016-03-31 | 23,777 | 8,078 | 5,448 |
| 2015-12-31 | 22,859 | 7,535 | 5,118 |
| 2015-09-30 | 21,911 | 4,994 | 2,790 |
| 2015-06-30 | 20,986 | 4,625 | 2,064 |
*GAAP earnings excluding extraordinary items.
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 AbbVie Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 10.77 | 12.06 | 9.06 | 3.00 |
| 2021-12-31 | 9.79 | 10.62 | 8.47 | 3.00 |
| 2020-12-31 | 8.78 | 9.37 | 7.62 | 5.00 |
| 2019-12-31 | 7.80 | 8.78 | 6.31 | 7.00 |
| 2018-12-31 | 6.97 | 7.30 | 6.82 | 8.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-03-31 | 3.98 |
| 2017-12-31 | 3.31 |
| 2017-09-30 | 4.13 |
| 2017-06-30 | 4.09 |
| 2017-03-31 | 3.88 |
| 2016-12-31 | 3.65 |
| 2016-09-30 | 3.72 |
| 2016-06-30 | 3.49 |
| 2016-03-31 | 3.34 |
| 2015-12-31 | 3.15 |
| 2015-09-30 | 1.73 |
| 2015-06-30 | 1.29 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess AbbVie's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
AbbVie 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 AbbVie 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
Past Earnings growth analysis
- AbbVie's year on year earnings growth rate has been positive over the past 5 years.
- AbbVie's 1-year earnings growth is less than its 5-year average (1.2% vs 8.1%)
- AbbVie's earnings growth has not matched the US Biotechs industry average in the past year (1.2% vs 21.8%).
Earnings and Revenue History
All data from AbbVie Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-03-31 | 29,612.00 | 6,352.00 | 6,205.00 | 5,084.00 |
| 2017-12-31 | 28,216.00 | 5,283.00 | 5,905.00 | 4,982.00 |
| 2017-09-30 | 27,273.00 | 6,615.00 | 5,889.00 | 4,777.00 |
| 2017-06-30 | 26,710.00 | 6,582.00 | 5,818.00 | 4,661.00 |
| 2017-03-31 | 26,218.00 | 6,278.00 | 5,873.00 | 4,562.00 |
| 2016-12-31 | 25,638.00 | 5,923.00 | 5,855.00 | 4,366.00 |
| 2016-09-30 | 25,242.00 | 6,048.00 | 5,733.00 | 4,178.00 |
| 2016-06-30 | 24,754.00 | 5,690.00 | 5,724.00 | 4,472.00 |
| 2016-03-31 | 23,777.00 | 5,448.00 | 5,646.00 | 4,236.00 |
| 2015-12-31 | 22,859.00 | 5,118.00 | 5,663.00 | 4,101.00 |
| 2015-09-30 | 21,911.00 | 2,790.00 | 6,059.00 | 3,978.00 |
| 2015-06-30 | 20,986.00 | 2,064.00 | 6,178.00 | 3,390.00 |
| 2015-03-31 | 20,437.00 | 1,802.00 | 6,133.00 | 3,336.00 |
| 2014-12-31 | 19,960.00 | 1,765.00 | 6,024.00 | 3,297.00 |
| 2014-09-30 | 19,619.00 | 3,686.00 | 5,413.00 | 3,201.00 |
| 2014-06-30 | 19,258.00 | 4,144.00 | 5,136.00 | 3,103.00 |
| 2014-03-31 | 19,024.00 | 4,114.00 | 5,113.00 | 2,978.00 |
| 2013-12-31 | 18,790.00 | 4,102.00 | 5,352.00 | 2,840.00 |
| 2013-09-30 | 18,885.00 | 4,540.00 | 4,859.00 | 2,542.00 |
| 2013-06-30 | 18,735.00 | 5,161.00 | 4,730.00 | 2,641.00 |
| 2013-03-31 | 18,536.00 | 5,360.00 | 4,656.00 | 2,574.00 |
| 2012-12-31 | 18,380.00 | 5,275.00 | 4,668.00 | 2,582.00 |
| 2012-09-30 | 17,933.11 | 4,892.44 | 4,712.21 | 2,775.62 |
| 2012-06-30 | 17,833.79 | 3,319.77 | 4,668.08 | 2,628.14 |
| 2012-03-31 | 17,615.24 | 3,592.80 | 4,463.08 | 2,575.90 |
| 2011-12-31 | 17,444.00 | 3,433.00 | 4,345.00 | 2,500.00 |
*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.
- AbbVie made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
- AbbVie used its assets less efficiently than the US Biotechs industry average last year based on Return on Assets.
- AbbVie's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess AbbVie's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
AbbVie 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 AbbVie'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 AbbVie's finances.
The net worth of a company is the difference between its assets and liabilities.
- AbbVie is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- AbbVie's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.5x 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.
All data from AbbVie Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-03-31 | 3,553.00 | 37,872.00 | 9,474.00 |
| 2017-12-31 | 5,097.00 | 37,368.00 | 9,789.00 |
| 2017-09-30 | 6,687.00 | 38,090.00 | 9,554.00 |
| 2017-06-30 | 6,009.00 | 37,543.00 | 7,205.00 |
| 2017-03-31 | 4,998.00 | 37,304.00 | 6,248.00 |
| 2016-12-31 | 4,636.00 | 36,842.00 | 6,423.00 |
| 2016-09-30 | 6,469.00 | 37,311.00 | 7,950.00 |
| 2016-06-30 | 5,640.00 | 37,845.00 | 8,002.00 |
| 2016-03-31 | 4,643.00 | 31,913.00 | 8,600.00 |
| 2015-12-31 | 3,945.00 | 31,752.00 | 8,407.00 |
| 2015-09-30 | 4,863.00 | 32,133.00 | 9,311.00 |
| 2015-06-30 | 5,504.00 | 31,302.00 | 8,279.00 |
| 2015-03-31 | 1,377.00 | 15,332.00 | 7,924.00 |
| 2014-12-31 | 1,742.00 | 14,977.00 | 8,374.00 |
| 2014-09-30 | 4,645.00 | 15,061.00 | 7,728.00 |
| 2014-06-30 | 5,218.00 | 15,001.00 | 10,246.00 |
| 2014-03-31 | 4,697.00 | 14,752.00 | 9,100.00 |
| 2013-12-31 | 4,492.00 | 14,723.00 | 9,895.00 |
| 2013-09-30 | 3,577.00 | 15,158.00 | 9,596.00 |
| 2013-06-30 | 3,558.00 | 15,154.00 | 8,754.00 |
| 2013-03-31 | 2,957.00 | 15,158.00 | 7,479.00 |
| 2012-12-31 | 3,363.00 | 15,672.00 | 7,976.00 |
| 2012-09-30 | 15,668.84 | 0.00 | 4,585.61 |
| 2012-06-30 | 11,505.08 | 0.00 | 74.54 |
| 2012-03-31 | 12,050.77 | 0.00 | 42.99 |
| 2011-12-31 | 11,932.00 | 48.00 | 653.00 |
- AbbVie's level of debt (1065.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (511.5% vs 1065.9% today).
- Debt is well covered by operating cash flow (27.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
Financial health checks
We assess AbbVie's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) AbbVie has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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 AbbVie'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
If you bought
$2,000 of
AbbVie
shares you are expected to receive
$81
in your first year as a dividend.
Dividend Amount
- AbbVie's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
- AbbVie's dividend is above the markets top 25% of dividend payers in United States of America (3.98%).
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.
| 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 Biotechs Industry Average Dividend Yield | Market Cap Weighted Average of 17 Stocks | 1.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 5856 Stocks | 3% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 4% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | 5.49 | 4.00 |
| 2021-12-31 | 5.15 | 6.00 |
| 2020-12-31 | 4.52 | 14.00 |
| 2019-12-31 | 4.13 | 16.00 |
| 2018-12-31 | 3.67 | 16.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-06-14 | 3.840 | 4.023 |
| 2018-02-15 | 3.840 | 3.748 |
| 2017-10-27 | 2.840 | 2.841 |
| 2017-09-08 | 2.560 | 2.855 |
| 2017-06-22 | 2.560 | 3.527 |
| 2017-02-16 | 2.560 | 3.895 |
| 2017-01-27 | 2.560 | 4.213 |
| 2016-11-07 | 2.560 | 4.159 |
| 2016-10-28 | 2.560 | 4.510 |
| 2016-06-16 | 2.280 | 3.590 |
| 2016-02-18 | 2.280 | 3.856 |
| 2015-10-30 | 2.280 | 3.971 |
| 2015-09-11 | 2.040 | 3.671 |
| 2015-06-18 | 2.040 | 3.036 |
| 2015-02-19 | 2.040 | 3.263 |
| 2014-10-20 | 1.960 | 3.093 |
| 2014-09-19 | 1.680 | 2.965 |
| 2014-06-19 | 1.680 | 3.050 |
| 2014-02-20 | 1.680 | 3.237 |
| 2013-12-12 | 1.600 | 3.168 |
| 2013-09-19 | 1.600 | 3.341 |
| 2013-06-20 | 1.600 | 3.644 |
| 2013-01-04 | 1.600 | 3.987 |
| 2012-12-10 | 1.600 | 4.644 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, AbbVie has been paying a dividend for less than 10 years.
- Dividend payments have increased, but AbbVie only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of
AbbVie's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by net profit (1.4x coverage).
- Dividends after 3 years are expected to be well covered by net profit (2.2x coverage).
Income/ dividend checks
We assess AbbVie's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can AbbVie afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) AbbVie has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $22,625,243 |
| AGE | 64 |
| TENURE AS CEO | 6.5 years |
CEO Bio
Mr. Richard A. Gonzalez, also known as Rick, serves as the Chairman of AbbVie Inc. and has been its Chief Executive Officer at AbbVie Inc. since 2012. Mr. Gonzalez served as an Executive Vice President of Pharmaceutical Products Group at Abbott Diabetes Care Inc., since July 1, 2010. He served as President of Abbott Ventures, Inc. at Abbott Diabetes Care, Inc. since 2009. He served as an Interim Executive Vice President of Pharmaceutical Products at Abbott Laboratories since July 1, 2010. He was responsible for Abbott's global pharmaceutical business, including commercial operations, research and development and manufacturing. He has served more than 30 years in various capacities at Abbott. He served as President, Abbott Ventures Inc., Abbott's medical technology investment arm, from 2009 to 2011. Mr. Gonzalez joined Abbott in 1977 and held various management positions before briefly retiring in 2007, including President of Abbott's Medical Products Group and President of Abbott's former Hospital Products Division (now Hospira, Inc.). He served as Chief Operating Officer and President at Abbott Vascular, Inc., a subsidiary of Abbott Laboratories until September 30, 2007. He served as an Executive Vice President of medical products of Abbott from 2000 to 2001, as Senior Vice President, hospital products from 1998 to 2000 and as Vice President of Abbott Health Systems division from 1995 to 1998. He served as President of Abbott's Health Systems Division. He joined Abbott in 1977. Since 1992, he served as Divisional Vice President and General Manager for Abbott's Diagnostic Operations in the United States and Canada. He served as a Chief Operating Officer & President of Abbott Laboratories from 2006 to September 30, 2007, served as its Chief Operating Officer of Medical Products Group and President of Medical Products Group-div from 2001 to March 27, 2006, President from 2006 to September 30, 2007, Chief Operating Officer of all Operations and President of All Operations since March 27, 2006. Prior to Abbott, Mr. Gonzalez served as a research biochemist at the University of Miami School of Medicine. He serves on the board of Directors of the John G. Shedd Aquarium and the Lyric Opera of Chicago. He served as a Director of Abbott Vascular, Inc. until September 30, 2007 and Abbott Laboratories from December 14, 2001 to September 30, 2007.
CEO Compensation
- Rick's compensation has been consistent with company performance over the past year.
- Rick's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure
Average tenure and age of the AbbVie management team in years:
- The average tenure for the AbbVie management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Rick Gonzalez
Chairman & CEO
$23M
64
6.5 yrs
Bill Chase
Executive VP & CFO
$12M
50
Mike Severino
Executive VP of Research & Development and Chief Scientific Officer
$8M
52
4.2 yrs
Laura Schumacher
Executive VP of External Affairs
$15M
55
5.5 yrs
Carlos Alban
Executive Vice President of Commercial Operations
$12M
55
Azita Saleki-Gerhardt
Senior Vice President of Operations
55
Larry Peepo
Vice President of Investor Relations
Karen Hale
VP and Chief Ethics & Compliance Officer
Tim Richmond
Senior Vice President of Human Resources
$3M
52
Henry Gosebruch
Executive VP & Chief Strategy Officer
$7M
45
Board of Directors Tenure
Average tenure and age of the AbbVie board of directors in years:
- The tenure for the AbbVie board of directors is about average.
Board of Directors
Rick Gonzalez
Chairman & CEO
$23M
64
Roxanne Austin
Independent Director
$320K
57
5.5 yrs
Ed Liddy
Independent Director
$310K
72
5.5 yrs
Ed Rapp
Independent Director
$342K
60
5.5 yrs
Glenn Tilton
Lead Independent Director
$360K
70
5.5 yrs
Willie Burnside
Independent Director
$321K
66
5.5 yrs
Robert Alpern
Independent Director
$336K
67
5.5 yrs
Rick Waddell
Independent Director
$321K
64
5.5 yrs
Brett Hart
Independent Director
$315K
48
2.5 yrs
Melody Meyer
Director
$275K
60
1.2 yrs
Recent Insider Trading
- More shares have been bought than sold by AbbVie insiders in the past 3 months.
Who owns this company?
Management checks
We assess AbbVie's management by checking for:- Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) AbbVie 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
External News
Simply Wall St News
Interested In AbbVie Inc (NYSE:ABBV)’s Upcoming US$0.96 Dividend? You Have 2 Days Left
On the 15 August 2018, AbbVie Inc (NYSE:ABBV) will be paying shareholders an upcoming dividend amount of US$0.96 per share. … Below, I will explain how holding AbbVie can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … 5 questions I ask before picking a dividend stock
Simply Wall St - – Full articleIs It Time To Buy AbbVie Inc (NYSE:ABBV) Based Off Its PE Ratio?
and want to begin learning the link between AbbVie Inc (NYSE:ABBV)’s fundamentals and stock market performance. … AbbVie Inc (NYSE:ABBV) is currently trading at a trailing P/E of 23x, which is lower than the industry average of 26.7x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind
Simply Wall St - – Full articleCalculating The Intrinsic Value Of AbbVie Inc (NYSE:ABBV)
How far off is AbbVie Inc (NYSE:ABBV) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleHow Do Analysts See AbbVie Inc's (NYSE:ABBV) Margin Performing In The Years Ahead?
AbbVie Inc's (NYSE:ABBV) … promising vision for earnings in the future … drives analysts to expect
Simply Wall St - – Full articleWhat Do Expectations Tell Us About AbbVie Inc's (NYSE:ABBV) Margins In The Years Ahead?
To get some insight, I will try to evaluate AbbVie's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for ABBV Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 6.35 Billion ÷ 29.61 Billion = 21.45% AbbVie's margin have remained steady in the past five years, due to a 8.06% average growth in net income, remaining within range of 8.75% in average revenue growth which suggests that the company has maintained the percentage of revenue that is converted in to net income, meaning their top line growth has also coincided with an increase in earnings. … Based on future expectations, ABBV's profit margin will shift towards expansion, with an expectation of 6.76% in annual revenue growth and a forecasted 9.58% in annual net income growth.
Simply Wall St - – Full articleCan AbbVie Inc's (NYSE:ABBV) ROE Continue To Surpass The Industry Average?
Check out our latest analysis for AbbVie Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs AbbVie’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of AbbVie’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:ABBV Last Perf May 16th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.
Simply Wall St - – Full articleWhy You Should Look Beyond AbbVie Inc's (NYSE:ABBV) Growth
I will conduct a high level fundamental analysis on the company by looking at its past financials and growth prospects moving forward. … A big red-siren warning for ABBV is its high level of debt, which has been increasing over the past five years, exceeding its total level of equity. … One reason I do like ABBV as a business is its low level of fixed assets on its balance sheet (6.23% of total assets).
Simply Wall St - – Full articleYou Should Diversify With These Pharma And Biotech Dividend Stocks
Plus, a 4.13% yield places it amidst the market’s top dividend payers. … NYSE:MRK Historical Dividend Yield Apr 20th 18 Johnson & Johnson (NYSE:JNJ) JNJ has a nice dividend yield of 2.63% with a high payout ratio. … NYSE:JNJ Historical Dividend Yield Apr 20th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
Simply Wall St - – Full article3 Days Left Before AbbVie Inc (NYSE:ABBV) Will Start Trading Ex-Dividend, Should Investors Buy?
See our latest analysis for AbbVie 5 questions I ask before picking a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … Next Steps: Taking into account the dividend metrics, AbbVie ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.
Simply Wall St - – Full articleShould You Be Tempted To Sell AbbVie Inc (NYSE:ABBV) At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ABBV Price per share = $112.45 Earnings per share = $3.31 ∴ Price-Earnings Ratio = $112.45 ÷ $3.31 = 34x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with ABBV, then ABBV’s P/E would naturally be higher since investors would reward ABBV’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with ABBV, ABBV’s P/E would again be higher since investors would reward ABBV’s lower risk with a higher price as well.
Simply Wall St - – Full articleCompany Info
Map
Description
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company offers HUMIRA, a biologic therapy administered as a subcutaneous injection for autoimmune diseases; IMBRUVICA, an oral therapy for patients with chronic lymphocytic leukemia; and VIEKIRA PAK, an interferon-free therapy, with or without ribavirin, for the treatment of adults with genotype 1 chronic hepatitis C. It also provides Kaletra, an anti- human immunodeficiency virus (HIV)-1 medicine used with other anti-HIV-1 medications as a treatment that maintains viral suppression in HIV-1 patients; Norvir, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1; and Synagis to prevent RSV infection at-risk infants. In addition, the company offers AndroGel, a testosterone replacement therapy for males diagnosed with symptomatic low testosterone; Creon, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron, a product for the palliative treatment of prostate cancer, endometriosis, and central precocious puberty, as well as for the treatment of patients with anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson’s disease; Sevoflurane, an anesthesia product for human use; and ZINBRYTA, a subcutaneous treatment for relapsing forms of multiple sclerosis. It serves wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from its distribution centers and public warehouses. AbbVie Inc. has a collaboration with Alector, Inc.; C2N Diagnostics; Voyager Therapeutics, Inc.; Janssen Biotech, Inc.; International Myeloma Foundation; Calibr and Scripps Research; The Institute for Research in Immunology and Cancer – Commercialization of Research; and the Université de Montréal. The company was incorporated in 2012 and is based in North Chicago, Illinois.
Details
| Name: | AbbVie Inc. |
| ABBV | |
| Exchange: | NYSE |
| Founded: | 2012 |
| $145,728,652,011 | |
| 1,514,063,917 | |
| Website: | http://www.abbvie.com |
| Address: |
AbbVie Inc. 1 North Waukegan Road, North Chicago, Illinois, 60064, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | ABBV | Common Stock | New York Stock Exchange | US | USD | 10. Dec 2012 | |
| DB | 4AB | Common Stock | Deutsche Boerse AG | DE | EUR | 10. Dec 2012 | |
| LSE | 0QCV | Common Stock | London Stock Exchange | GB | EUR | 10. Dec 2012 | |
| WBAG | ABBV | Common Stock | Wiener Boerse AG | AT | EUR | 10. Dec 2012 | |
| BMV | ABBV * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 10. Dec 2012 | |
| BOVESPA | ABBV34 | BDR EACH REPR 1 COM USD0.01 | Bolsa de Valores de Sao Paulo | BR | BRL | 25. Apr 2016 |
Number of employees
Current staff
Industry
| Biotechnology | |
| Pharmaceuticals & Biotech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/07/17 22:12 |
| End of day share price update: | 2018/07/17 00:00 |
| Last estimates confirmation: | 2018/07/16 |
| Last earnings update: | 2018/03/31 |
| Last annual earnings update: | 2017/12/31 |
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.
