AbbVie (ABBV) Stock Analysis
Here is a fundamental analysis of AbbVie (ABBV), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| 1-Year Return | 22.21% | 44.56% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| 1-Year Volatility | 24.36% | 67.11% |
| Beta | 0.31 | 0.93 |
Company Profile
| Profile Item | ABBV |
|---|---|
| Name | AbbVie Inc. |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Biotechnology |
| GICS Sub-Industry | Biotechnology |
| Market Capitalization | 402.35 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 2013 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
AbbVie (ABBV) trades at P/E ratio of 111.09, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
111.09
Group distribution
- ABBV
- 111.09
- Max
- 77.14
- Q3
- 43.78
- Median
- 24.68
- Q1
- 15.27
- Min
- 1.70
Largest peers
- ABBV
- 111.09
- LLY
- 40.32
- MRK
- 33.54
- JNJ
- 27.94
- AZN
- 26.96
- NVS
- 21.93
- NVO
- 10.30
Price-to-Sales Ratio (TTM)
AbbVie (ABBV) trades at 6.40 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
6.40
Group distribution
- Max
- 55.38
- Q3
- 24.42
- Median
- 6.98
- ABBV
- 6.40
- Q1
- 3.30
- Min
- 0.01
Largest peers
- LLY
- 13.98
- ABBV
- 6.40
- JNJ
- 6.02
- NVS
- 5.16
- AZN
- 4.59
- MRK
- 4.47
- NVO
- 0.59
Price-to-Book Ratio (MRQ)
AbbVie (ABBV) has negative P/B ratio of -60.45, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
-60.45
Group distribution
- Max
- 13.23
- Q3
- 6.38
- Median
- 3.46
- Q1
- 1.64
- Min
- -5.17
- ABBV
- -60.45
Largest peers
- LLY
- 32.45
- NVS
- 7.58
- JNJ
- 7.14
- MRK
- 6.41
- NVO
- 6.22
- AZN
- 5.85
- ABBV
- -60.45
Valuation at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 111.09 | 24.68 |
| Price-to-Sales Ratio (TTM) | 6.40 | 6.98 |
| Price-to-Book Ratio (MRQ) | -60.45 | 3.46 |
| Free Cash Flow Yield | 5.17% | -2.37% |
Profitability
Return on Equity (TTM)
No usable ROE is available for AbbVie (ABBV) this period, so the shareholder-equity return read is skipped.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
--
Group distribution
- Max
- 101.32%
- Q3
- 2.92%
- Median
- -31.26%
- Q1
- -62.68%
- Min
- -158.89%
- ABBV
- --
Largest peers
- LLY
- 107.46%
- NVO
- 71.40%
- NVS
- 34.93%
- JNJ
- 26.42%
- AZN
- 23.48%
- MRK
- 18.94%
- ABBV
- --
Net Profit Margin (TTM)
AbbVie (ABBV) keeps 5.79% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
5.79%
Group distribution
- Max
- 12.76%
- ABBV
- 5.79%
- Q3
- 4.00%
- Median
- 0.00%
- Q1
- -2.26%
- Min
- -11.53%
Largest peers
- NVO
- 37.21%
- LLY
- 34.99%
- NVS
- 23.92%
- JNJ
- 21.83%
- AZN
- 17.19%
- MRK
- 13.59%
- ABBV
- 5.79%
Operating Profit Margin (TTM)
AbbVie (ABBV) turns 32.16% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
32.16%
Group distribution
- Max
- 100.30%
- ABBV
- 32.16%
- Q3
- 4.40%
- Median
- 0.00%
- Q1
- -131.52%
- Min
- -333.43%
Largest peers
- NVO
- 61.57%
- LLY
- 49.39%
- MRK
- 38.60%
- ABBV
- 32.16%
- NVS
- 30.48%
- AZN
- 27.94%
- JNJ
- 27.41%
Profitability at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| Return on Equity (TTM) | -- | -31.26% |
| Return on Assets (TTM) | 10.03% | -14.70% |
| Net Profit Margin (TTM) | 5.79% | 0.00% |
| Operating Profit Margin (TTM) | 32.16% | 0.00% |
| Gross Profit Margin (TTM) | 72.03% | 33.58% |
Financial Strength
Current Ratio (MRQ)
AbbVie (ABBV) has current ratio of 0.80, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.80
Group distribution
- Max
- 24.81
- Q3
- 11.75
- Median
- 5.57
- Q1
- 2.69
- ABBV
- 0.80
- Min
- 0.23
Largest peers
- LLY
- 1.50
- MRK
- 1.30
- JNJ
- 1.03
- AZN
- 0.91
- NVS
- 0.85
- ABBV
- 0.80
- NVO
- 0.79
Debt-to-Equity Ratio (MRQ)
No usable debt-to-equity ratio is available for AbbVie (ABBV) this period, so the balance-sheet leverage read is skipped.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
--
Group distribution
- Max
- 1.60
- Q3
- 0.68
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
- ABBV
- --
Largest peers
- LLY
- 1.39
- NVS
- 1.21
- MRK
- 1.07
- NVO
- 0.72
- AZN
- 0.72
- JNJ
- 0.68
- ABBV
- --
Financial Strength at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.80 | 5.57 |
| Debt-to-Equity Ratio (MRQ) | -- | 0.15 |
| Net Debt / EBITDA | 2.12 | 1.09 |
Dividends
Dividend Yield (TTM)
AbbVie (ABBV) has dividend yield of 3.04%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
3.04%
Group distribution
- ABBV
- 3.04%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVO
- 4.11%
- NVS
- 3.10%
- ABBV
- 3.04%
- MRK
- 2.86%
- JNJ
- 2.23%
- AZN
- 1.77%
- LLY
- 0.61%
Dividend Payout Ratio (TTM)
AbbVie (ABBV) has payout ratio of 325.98%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.
ABBV
Pharmaceuticals, Biotechnology & Life Sciences industry group
325.98%
Group distribution
- ABBV
- 325.98%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ABBV
- 325.98%
- MRK
- 93.52%
- NVS
- 67.91%
- JNJ
- 60.25%
- AZN
- 47.70%
- NVO
- 42.59%
- LLY
- 22.13%
Dividends at a Glance
| Metric | Current stock: ABBV | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 3.04% | 0.00% |
| Dividend Payout Ratio (TTM) | 325.98% | 0.00% |