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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

ABBV
GSPC
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AbbVie (ABBV) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for AbbVie (ABBV) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry group median
1-Year Return22.21%44.56%

Risk

Drawdown

ABBV
GSPC
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AbbVie (ABBV) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry group median
1-Year Volatility24.36%67.11%
Beta0.310.93

Company Profile

Company profile fields for AbbVie (ABBV)
Profile ItemABBV
NameAbbVie Inc.
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
GICS Sub-IndustryBiotechnology
Market Capitalization402.35 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 2, 2013
Security TypeCommon 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
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Where AbbVie (ABBV) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

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
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Where AbbVie (ABBV) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

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
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Where AbbVie (ABBV) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry group median
Price-to-Earnings Ratio (TTM)111.0924.68
Price-to-Sales Ratio (TTM)6.406.98
Price-to-Book Ratio (MRQ)-60.453.46
Free Cash Flow Yield5.17%-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
--
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AbbVie (ABBV) doesn’t report ROE this period; the box shows the Pharmaceuticals, Biotechnology & Life Sciences group’s distribution and the dots its largest members.

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%
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Where AbbVie (ABBV) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where AbbVie (ABBV) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry 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
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Where AbbVie (ABBV) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

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
--
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AbbVie (ABBV) doesn’t report debt-to-equity ratio this period; the box shows the Pharmaceuticals, Biotechnology & Life Sciences group’s distribution and the dots its largest members.

Financial Strength at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry group median
Current Ratio (MRQ)0.805.57
Debt-to-Equity Ratio (MRQ)--0.15
Net Debt / EBITDA2.121.09

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%
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Where AbbVie (ABBV) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where AbbVie (ABBV) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

AbbVie (ABBV) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: ABBVIndustry group median
Dividend Yield (TTM)3.04%0.00%
Dividend Payout Ratio (TTM)325.98%0.00%