NYSE:ABBV

Stock Analysis Report

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Executive Summary

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the United States, Japan, Germany, Canada, France, Spain, Italy, the Netherlands, the United Kingdom, Brazil, and internationally. More Details


Snowflake Analysis

Proven track record and fair value.


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 +/- 4% a week.

Volatility Over Time: ABBV's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

ABBV

-0.6%

US Biotechs

-0.5%

US Market


1 Year Return

17.2%

ABBV

24.1%

US Biotechs

18.3%

US Market

Return vs Industry: ABBV underperformed the US Biotechs industry which returned 26.2% over the past year.

Return vs Market: ABBV underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

ABBVIndustryMarket
7 Day1.8%-0.6%-0.5%
30 Day19.6%5.2%3.6%
90 Day6.7%6.9%5.6%
1 Year23.7%17.2%26.2%24.1%21.0%18.3%
3 Year23.3%6.5%26.1%19.7%45.2%35.6%
5 Year109.6%68.1%11.1%3.5%89.8%68.8%

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

Valuation

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

28.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABBV ($100.84) is trading below our estimate of fair value ($140.69)

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 (22x) compared to the US Biotechs industry average (29.5x).

PE vs Market: ABBV is poor value based on its PE Ratio (22x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABBV is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: ABBV is overvalued based on its PB Ratio (11.7x) compared to the US Biotechs industry average (3.5x).


Next Steps

Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABBV's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: ABBV's earnings (5.6% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: ABBV's revenue (4.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ABBV's revenue (4.8% 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 (92.2%).


Next Steps

Past Performance

How has AbbVie performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABBV has a large one-off loss of $3.7B impacting its September 30 2020 financial results.

Growing Profit Margin: ABBV's current net profit margins (18%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: ABBV's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: ABBV's earnings growth over the past year (123.1%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: ABBV earnings growth over the past year (123.1%) exceeded the Biotechs industry -17.2%.


Return on Equity

High ROE: Whilst ABBV's Return on Equity (48.3%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is AbbVie's financial position?


Financial Position Analysis

Short Term Liabilities: ABBV's short term assets ($23.0B) do not cover its short term liabilities ($24.2B).

Long Term Liabilities: ABBV's short term assets ($23.0B) do not cover its long term liabilities ($110.2B).


Debt to Equity History and Analysis

Debt Level: ABBV's debt to equity ratio (567.2%) is considered high.

Reducing Debt: ABBV's debt to equity ratio has reduced from 663.3% to 567.2% over the past 5 years.

Debt Coverage: ABBV's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: ABBV's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

5.16%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ABBV's dividend (5.16%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: ABBV's dividend (5.16%) is in the top 25% of dividend payers in the US market (4.2%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.8%), 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 (43.3% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Rick Gonzalez (66 yo)

7.83yrs

Tenure

US$21,610,598

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 ($USD21.61M) is above average for companies of similar size in the US market ($USD11.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Gonzalez
Chairman & CEO7.83yrsUS$21.61m0.020%
$ 35.1m
Michael Severino
Vice Chairman & President1.92yrsUS$9.51m0.0038%
$ 6.8m
Robert Michael
Executive VP & CFO2.08yrsUS$8.77m0.0011%
$ 2.0m
Laura Schumacher
Vice Chairman of External Affairs7.83yrsUS$15.14m0.012%
$ 20.8m
Carlos Alban
Vice Chairman & Chief Commercial Officerno dataUS$14.41m0.0088%
$ 15.7m
Azita Saleki-Gerhardt
Executive Vice President of Operationsno datano data0.0058%
$ 10.3m
Thomas Hudson
Senior VP of Research & Development and Chief Scientific Officerno datano data0.0011%
$ 2.0m
Elizabeth Shea
Vice President of Investor Relationsno datano datano data
Timothy Richmond
Executive VP & Chief Human Resources Officerno dataUS$3.30mno data
Scott Brun
VP of Scientific Affairs & Head of AbbVie Venturesno datano datano data
Henry Gosebruch
Executive VP & Chief Strategy Officerno dataUS$7.40m0.0063%
$ 11.2m
Jeffrey Stewart
Senior Vice President of U.S. Commercial Operationsno datano data0.0026%
$ 4.7m

5.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ABBV's management team is considered experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Gonzalez
Chairman & CEO7.83yrsUS$21.61m0.020%
$ 35.1m
Roxanne Austin
Independent Director7.83yrsUS$333.43k0.0047%
$ 8.4m
Edward Liddy
Independent Director7.83yrsUS$319.95k0.000060%
$ 106.8k
Thomas Freyman
Independent Director0.50yrno data0.0072%
$ 12.9m
Glenn Tilton
Lead Independent Director7.83yrsUS$387.75k0.00072%
$ 1.3m
Edward Rapp
Independent Director7.83yrsUS$352.03k0.00091%
$ 1.6m
William H. Burnside
Independent Director7.83yrsUS$333.71k0%
$ 0
Frederick Waddell
Independent Director7.83yrsUS$330.95k0.00011%
$ 195.8k
Melody Meyer
Independent Director3.5yrsUS$330.95k0%
$ 0
Brett Hart
Independent Director4.83yrsUS$336.62k0%
$ 0
Rebecca Roberts
Independent Director2.5yrsUS$324.75kno data
Robert Alpern
Independent Director7.83yrsUS$375.10k0.0015%
$ 2.6m

7.8yrs

Average Tenure

66yo

Average Age

Experienced Board: ABBV's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 19.4%.


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$178.030b
  • Shares outstanding: 1.77b
  • 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
4ABXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 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 pharmaceuticals in the United States, Japan, Germany, Canada, France, Spain, Italy, the Netherlands, the United Kingdom, Brazil, and internationally...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/22 23:33
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
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.