AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$107.77|
|52 Week High||US$79.11|
|52 Week Low||US$121.53|
|1 Month Change||-9.94%|
|3 Month Change||-4.73%|
|1 Year Change||20.24%|
|3 Year Change||16.28%|
|5 Year Change||65.60%|
|Change since IPO||207.91%|
Recent News & Updates
AbbVie: The FDA Decision On RINVOQ Likely Means Trouble
AbbVie is a premier dividend stock with a superior and safe dividend. The business has been firing on all cylinders but a recent FDA decision likely spells trouble. One of AbbVie's slated future blockbuster drugs, RINVOQ, is now required to carry a problematic safety warning label which may dramatically damage its sales potential. The FDA decision is certainly not something investors should brush aside easily as it could have damaging long-term implications. Risks regarding AbbVie's ability to quickly replace expected declines in HUMIRA revenues have undoubtedly increased.
Downward Pressures and Flat Earnings Outweigh the AbbVie Inc.'s (NYSE:ABBV) Dividend Yield
AbbVie Inc. (NYSE: ABBV) recently catered, as modest yearly gains almost got wiped out in a single session. Meanwhile, downward pressure continues as the price looks to test the support around US$100 for the third time this year. We will examine the dividend as the stock dips down below the P/E of 30 since a 4.8% yield is certainly interesting at the right price.
AbbVie: Is This Dividend Aristocrat Overbought Or Is There More Room To Run?
Investors are looking to add defensive, stable dividend stocks to their portfolio. AbbVie is a beloved "Dividend Aristocrat" currently yielding 4.4%. But the stock also is trading around a 52-week high. Can you still buy AbbVie at current prices or should you wait for a dip?
|ABBV||US Biotechs||US Market|
Return vs Industry: ABBV underperformed the US Biotechs industry which returned 23.4% over the past year.
Return vs Market: ABBV underperformed the US Market which returned 30.7% over the past year.
Stable Share Price: ABBV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ABBV's weekly volatility (3%) has been stable over the past year.
About the Company
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; SKYRIZI to treat moderate to severe plaque psoriasis in adults; RINVOQ, a JAK inhibitor for the treatment of moderate to severe active rheumatoid arthritis in adult patients; 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; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides CREON, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid used in the treatment of hypothyroidism; AndroGel for males diagnosed with symptomatic low testosterone; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; Lupron for the palliative treatment of advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; and Botox therapeutic.
Is AbbVie undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ABBV ($106.48) is trading below our estimate of fair value ($215.56)
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 (28.5x) compared to the US Biotechs industry average (24.4x).
PE vs Market: ABBV is poor value based on its PE Ratio (28.5x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: ABBV is poor value based on its PEG Ratio (14.3x)
Price to Book Ratio
PB vs Industry: ABBV is overvalued based on its PB Ratio (15x) compared to the US Biotechs industry average (3.1x).
How is AbbVie forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ABBV's forecast earnings growth (2% per year) is below the savings rate (2%).
Earnings vs Market: ABBV's earnings (2% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: ABBV's earnings are forecast to grow, but not significantly.
Revenue vs Market: ABBV's revenue (0.1% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: ABBV's revenue (0.1% 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 (102.5%).
How has AbbVie performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ABBV has a large one-off loss of $10.5B 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 (-4.5%) over the past year, making it difficult to compare to the Biotechs industry average (4.9%).
Return on Equity
High ROE: Whilst ABBV's Return on Equity (53%) is outstanding, this metric is skewed due to their high level of debt.
How is AbbVie's financial position?
Financial Position Analysis
Short Term Liabilities: ABBV's short term assets ($26.0B) do not cover its short term liabilities ($28.7B).
Long Term Liabilities: ABBV's short term assets ($26.0B) do not cover its long term liabilities ($106.7B).
Debt to Equity History and Analysis
Debt Level: ABBV's debt to equity ratio (652.3%) is considered high.
Reducing Debt: ABBV's debt to equity ratio has reduced from 669.8% to 652.3% over the past 5 years.
Debt Coverage: ABBV's debt is well covered by operating cash flow (24.9%).
Interest Coverage: ABBV's interest payments on its debt are well covered by EBIT (7.7x coverage).
What is AbbVie current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ABBV's dividend (4.88%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: ABBV's dividend (4.88%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ABBV has been paying a dividend for less than 10 years.
Growing Dividend: ABBV's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (136.3%), ABBV's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ABBV's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rick Gonzalez (67 yo)
Mr. Richard A. Gonzalez, also known as Rick, serves as the Chairman of AbbVie Inc. and has been its Chief Executive Officer at AbbVie Inc. since 2013. Mr. Gonzalez served as an Executive Vice President of...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD24.01M) is above average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.
Experienced Management: ABBV's management team is considered experienced (2.8 years average tenure).
Experienced Board: ABBV's board of directors are considered experienced (8.7 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AbbVie Inc.'s employee growth, exchange listings and data sources
- Name: AbbVie Inc.
- Ticker: ABBV
- Exchange: NYSE
- Founded: 2012
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$190.449b
- Shares outstanding: 1.77b
- Website: https://www.abbvie.com
Number of Employees
- AbbVie Inc.
- 1 North Waukegan Road
- North Chicago
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 04:48|
|End of Day Share Price||2021/09/15 00:00|
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.