NYSE:ABBV

Stock Analysis Report

Executive Summary

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products in the United States, Japan, Germany, Canada, Italy, Spain, the Netherlands, the United Kingdom, Brazil, and internationally.

Rewards

Trading at 58.5% below its fair value

Earnings have grown 12.6% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value average dividend payer.


Similar Companies

Gilead Sciences

NasdaqGS:GILD

Share Price & News

How has AbbVie's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABBV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

ABBV

-0.5%

US Biotechs

1.5%

US Market


1 Year Return

16.3%

ABBV

11.0%

US Biotechs

20.1%

US Market

Return vs Industry: ABBV exceeded the US Biotechs industry which returned 11% over the past year.

Return vs Market: ABBV underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ABBVIndustryMarket
7 Day-0.7%-0.5%1.5%
30 Day6.9%0.6%1.4%
90 Day5.7%9.3%8.7%
1 Year23.1%16.3%12.0%11.0%22.7%20.1%
3 Year73.8%52.3%16.9%13.6%50.1%40.5%
5 Year90.7%55.3%-1.5%-6.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is AbbVie's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AbbVie undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABBV ($94.05) is trading below our estimate of fair value ($226.57)

Significantly Below Fair Value: ABBV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABBV is good value based on its PE Ratio (17.7x) compared to the Biotechs industry average (19.2x).

PE vs Market: ABBV is good value based on its PE Ratio (17.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ABBV is poor value based on its PEG Ratio (11.3x)


Price to Book Ratio

PB vs Industry: ABBV has negative assets, so we can't compare its PB Ratio to the US Biotechs industry average.


Next Steps

Future Growth

How is AbbVie forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBV's forecast earnings growth (1.6% per year) is below the savings rate (1.7%).

Earnings vs Market: ABBV's earnings (1.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ABBV's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABBV's revenue (4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ABBV's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABBV's Return on Equity is forecast to be very high in 3 years time (97.7%).


Next Steps

Past Performance

How has AbbVie performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABBV has a high level of non-cash earnings.

Growing Profit Margin: ABBV's current net profit margins (23.7%) are higher than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: ABBV's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: ABBV's earnings growth over the past year (39.3%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: ABBV earnings growth over the past year (39.3%) underperformed the Biotechs industry 66.2%.


Return on Equity

High ROE: ABBV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AbbVie's financial position?


Financial Position Analysis

Short Term Liabilities: ABBV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ABBV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ABBV has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ABBV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: ABBV's debt is well covered by operating cash flow (35%).

Interest Coverage: ABBV's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ABBV has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: ABBV's dividend (5.02%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ABBV's dividend (5.02%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ABBV has been paying a dividend for less than 10 years.

Growing Dividend: ABBV's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.7%), ABBV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABBV's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Rick Gonzalez (65yo)

7.1yrs

Tenure

US$21,271,869

Compensation

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 2013. Mr. Gonzalez served as an Executive Vice President of  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD21.27M) is above average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Gonzalez
Chairman & CEO7.1yrsUS$21.27m0.023% $31.5m
Michael Severino
Vice Chairman & President1.2yrsUS$8.61m0.0078% $10.9m
Robert Michael
Executive VP & CFO1.3yrsUS$3.12m0.00074% $1.0m
Laura Schumacher
Vice Chairman of External Affairs7.1yrsUS$11.38m0.011% $15.5m
Carlos Alban
Vice Chairman & Chief Commercial Officer0yrsUS$8.98m0.011% $15.8m
Azita Saleki-Gerhardt
Executive Vice President of Operations0yrsno data0.0067% $9.3m
Elizabeth Shea
Vice President of Investor Relations0yrsno datano data
Timothy Richmond
Executive VP & Chief Human Resources Officer0yrsUS$3.30mno data
Scott Brun
VP of Scientific Affairs & Head of AbbVie Ventures0yrsno datano data
Henry Gosebruch
Executive VP & Chief Strategy Officer0yrsUS$7.40m0.0053% $7.3m

4.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ABBV's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Gonzalez
Chairman & CEO7.1yrsUS$21.27m0.023% $31.5m
Roxanne Austin
Independent Director7.1yrsUS$328.43k0.0056% $7.8m
Edward Liddy
Independent Director7.1yrsUS$317.86k0.0015% $2.1m
Glenn Tilton
Lead Independent Director7.1yrsUS$369.33k0.00086% $1.2m
Edward Rapp
Independent Director7.1yrsUS$348.86k0.0021% $2.9m
William H. Burnside
Independent Director7.1yrsUS$328.86kno data
Frederick Waddell
Independent Director7.1yrsUS$328.86k0.00014% $194.7k
Melody Meyer
Independent Director2.8yrsUS$328.86kno data
Brett Hart
Independent Director4.1yrsUS$322.86kno data
Robert Alpern
Independent Director7.1yrsUS$350.61k0.0018% $2.5m

7.1yrs

Average Tenure

65yo

Average Age

Experienced Board: ABBV's board of directors are considered experienced (7.1 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

AbbVie Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AbbVie Inc.
  • Ticker: ABBV
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$139.083b
  • Shares outstanding: 1.48b
  • Website: https://www.abbvie.com

Number of Employees


Location

  • AbbVie Inc.
  • 1 North Waukegan Road
  • North Chicago
  • Illinois
  • 60064
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABBV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2012
ABBVNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2012
4ABDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2012
0QCVLSE (London Stock Exchange)YesCommon StockGBEURDec 2012
ABBVWBAG (Wiener Boerse AG)YesCommon StockATEURDec 2012
4ABETLX (Eurotlx)YesCommon StockITEURDec 2012
ABBV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLApr 2016

Biography

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products in the United States, Japan, Germany, Canada, Italy, Spain, the Netherlands, the United Kingdom, Brazil, and internationally. It offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases; IMBRUVICA to treat adult patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL), mantle cell lymphoma, waldenström’s macroglobulinemia, marginal zone lymphoma, and chronic graft versus host disease; VENCLEXTA, a BCL-2 inhibitor used to treat adults with CLL or SLL; VIEKIRA PAK, an interferon-free therapy to treat adults with genotype 1 chronic hepatitis C virus (HCV); TECHNIVIE to treat adults with genotype 4 HCV infection; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides KALETRA, an anti-human immunodeficiency virus (HIV)-1 medicine used with other anti-HIV-1 medications to maintain 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 respiratory syncytial virus infection at-risk infants. In addition, it offers AndroGel, a testosterone replacement therapy; CREON, a pancreatic enzyme therapy; Synthroid to treat hypothyroidism; and Lupron to treat prostate cancer, endometriosis, and central precocious puberty, as well as anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson’s disease; Sevoflurane, an anesthesia product; and ORILISSA, a non-peptide molecule gonadotropin-releasing hormone antagonist. It has collaborations with Alector, Inc.; Janssen Biotech, Inc.; Galapagos; Bristol-Myers Squibb Company; Calico Life Sciences LLC; Cystic Fibrosis Foundation; Dragonfly Therapeutics, Inc.; and Pan-Canadian Pharmaceutical Alliance. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:33
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.