Market Cap
US$205.4b
Last Updated
2021/07/31 06:27 UTC
Data Sources
Company Financials +
Executive Summary
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 1% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Mediocre balance sheet second-rate dividend payer.
Similar Companies
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: ABBV's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-1.6%
ABBV
-1.4%
US Biotechs
-0.5%
US Market
1 Year Return
22.5%
ABBV
24.6%
US Biotechs
35.9%
US Market
Return vs Industry: ABBV underperformed the US Biotechs industry which returned 24.6% over the past year.
Return vs Market: ABBV underperformed the US Market which returned 35.9% over the past year.
Shareholder returns
| ABBV | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.6% | -1.4% | -0.5% |
| 30 Day | 1.8% | -0.3% | 0.3% |
| 90 Day | 4.3% | 2.4% | 3.1% |
| 1 Year | 28.6%22.5% | 26.5%24.6% | 38.0%35.9% |
| 3 Year | 40.6%20.5% | 21.3%15.1% | 62.9%52.7% |
| 5 Year | 119.3%74.8% | 38.7%27.7% | 121.7%97.3% |
Long-Term 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
2 days ago | Simply Wall St
Before AbbVie's Inc. (NYSE:ABBV) Earnings Call Tomorrow, Consider their Debt4 days ago | Simply Wall St
Shareholders Of AbbVie (NYSE:ABBV) Must Be Happy With Their 121% Total Return3 weeks ago | Simply Wall St
Don't Race Out To Buy AbbVie Inc. (NYSE:ABBV) Just Because It's Going Ex-DividendValuation
Is AbbVie undervalued compared to its fair value and its price relative to the market?
46.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABBV ($116.3) is trading below our estimate of fair value ($216.22)
Significantly Below Fair Value: ABBV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ABBV is poor value based on its PE Ratio (31.2x) compared to the US Biotechs industry average (21.9x).
PE vs Market: ABBV is poor value based on its PE Ratio (31.2x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: ABBV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ABBV is overvalued based on its PB Ratio (15x) compared to the US Biotechs industry average (2.8x).
Future Growth
How is AbbVie forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
-1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABBV's earnings are forecast to decline over the next 3 years (-1% per year).
Earnings vs Market: ABBV's earnings are forecast to decline over the next 3 years (-1% per year).
High Growth Earnings: ABBV's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ABBV's revenue is expected to decline over the next 3 years (-0.3% per year).
High Growth Revenue: ABBV's revenue is forecast to decline over the next 3 years (-0.3% 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 (50.9%).
Past Performance
How has AbbVie performed over the past 5 years?
0.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABBV has a large one-off loss of $9.4B impacting its June 30 2021 financial results.
Growing Profit Margin: ABBV's current net profit margins (12.3%) are lower than last year (19.1%).
Past Earnings Growth Analysis
Earnings Trend: ABBV's earnings have grown by 0.1% per year over the past 5 years.
Accelerating Growth: ABBV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ABBV had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Biotechs industry average (68.2%).
Return on Equity
High ROE: Whilst ABBV's Return on Equity (48.61%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is AbbVie's financial position?
Financial Position Analysis
Short Term Liabilities: ABBV's short term assets ($26.6B) do not cover its short term liabilities ($32.0B).
Long Term Liabilities: ABBV's short term assets ($26.6B) do not cover its long term liabilities ($104.8B).
Debt to Equity History and Analysis
Debt Level: ABBV's debt to equity ratio (615.4%) is considered high.
Reducing Debt: ABBV's debt to equity ratio has reduced from 687.1% to 615.4% over the past 5 years.
Debt Coverage: ABBV's debt is well covered by operating cash flow (22.1%).
Interest Coverage: ABBV's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Dividend
What is AbbVie current dividend yield, its reliability and sustainability?
4.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ABBV's dividend (4.47%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: ABBV's dividend (4.47%) is in the top 25% of dividend payers in the US market (3.54%)
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 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (133%), ABBV's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ABBV's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Rick Gonzalez (67 yo)
8.5yrs
Tenure
US$24,007,591
Compensation
Mr. Richard A. Gonzalez, also known as Rick, serves as the Chairman of AbbVie Inc. and has been its Chief Executive Officer at AbbVie Inc. since 2013. Mr. Gonzalez served as an Executive Vice President of ...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD24.01M) is above average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ABBV's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: ABBV's board of directors are considered experienced (8.5 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.
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$205.412b
- Shares outstanding: 1.77b
- Website: https://www.abbvie.com
Number of Employees
Location
- AbbVie Inc.
- 1 North Waukegan Road
- North Chicago
- Illinois
- 60064-6400
- United States
Listings
Biography
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases;...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 06:27 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.