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Abbott Laboratories (ABT) Stock Analysis

Here is a fundamental analysis of Abbott Laboratories (ABT), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

ABT
GSPC
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Abbott Laboratories (ABT) 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 Abbott Laboratories (ABT) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
1-Year Return-34.06%6.07%

Risk

Drawdown

ABT
GSPC
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Abbott Laboratories (ABT) 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

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
1-Year Volatility24.54%49.54%
Beta0.610.89

Company Profile

Company profile fields for Abbott Laboratories (ABT)
Profile ItemABT
NameAbbott Laboratories
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
GICS Sub-IndustryHealth Care Equipment
Market Capitalization153.59 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 17, 1980
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Abbott Laboratories (ABT) trades at P/E ratio of 24.70, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ABT

Health Care Equipment & Services industry group

24.70

Group distribution
Max
80.40
Q3
44.58
Median
28.09
ABT
24.70
Q1
19.76
Min
0.91
Largest peers
ISRG
50.01
CVS
44.72
SYK
36.09
UNH
30.76
ABT
24.70
MDT
21.50
MCK
20.41
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Where Abbott Laboratories (ABT) stands on P/E ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Abbott Laboratories (ABT) trades at 3.40 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.

ABT

Health Care Equipment & Services industry group

3.40

Group distribution
Max
8.62
Q3
4.20
ABT
3.40
Median
1.94
Q1
1.01
Min
0.04
Largest peers
ISRG
13.76
SYK
4.74
ABT
3.40
MDT
2.83
UNH
0.82
CVS
0.32
MCK
0.23
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Where Abbott Laboratories (ABT) stands on P/S ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Abbott Laboratories (ABT) trades at 2.95 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

ABT

Health Care Equipment & Services industry group

2.95

Group distribution
Max
11.03
Q3
5.50
ABT
2.95
Median
2.78
Q1
1.47
Min
-2.18
Largest peers
ISRG
8.34
SYK
5.33
UNH
3.79
ABT
2.95
MDT
2.10
CVS
1.68
MCK
-43.32
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Where Abbott Laboratories (ABT) stands on P/B ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
Price-to-Earnings Ratio (TTM)24.7028.09
Price-to-Sales Ratio (TTM)3.401.94
Price-to-Book Ratio (MRQ)2.952.78
Free Cash Flow Yield4.13%4.00%

Profitability

Return on Equity (TTM)

Abbott Laboratories (ABT) posts ROE of 12.33%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ABT

Health Care Equipment & Services industry group

12.33%

Group distribution
Max
53.65%
Q3
12.73%
ABT
12.33%
Median
3.57%
Q1
-17.96%
Min
-59.21%
Largest peers
ISRG
17.23%
SYK
15.20%
ABT
12.33%
UNH
12.18%
MDT
9.93%
CVS
3.75%
MCK
--
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Where Abbott Laboratories (ABT) stands on ROE within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Abbott Laboratories (ABT) keeps 13.91% 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.

ABT

Health Care Equipment & Services industry group

13.91%

Group distribution
Max
30.40%
ABT
13.91%
Q3
7.96%
Median
1.27%
Q1
-9.77%
Min
-34.34%
Largest peers
ISRG
28.15%
ABT
13.91%
SYK
13.21%
MDT
13.20%
UNH
2.68%
MCK
1.18%
CVS
0.72%
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Where Abbott Laboratories (ABT) stands on net margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Abbott Laboratories (ABT) turns 13.47% 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.

ABT

Health Care Equipment & Services industry group

13.47%

Group distribution
Max
35.33%
ABT
13.47%
Q3
11.89%
Median
5.44%
Q1
-4.59%
Min
-25.61%
Largest peers
ISRG
30.87%
MDT
21.30%
SYK
17.82%
ABT
13.47%
UNH
8.05%
CVS
4.12%
MCK
2.21%
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Where Abbott Laboratories (ABT) stands on operating margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
Return on Equity (TTM)12.33%3.57%
Return on Assets (TTM)5.59%3.10%
Net Profit Margin (TTM)13.91%1.27%
Operating Profit Margin (TTM)13.47%5.44%
Gross Profit Margin (TTM)56.50%52.99%

Financial Strength

Current Ratio (MRQ)

Abbott Laboratories (ABT) has current ratio of 1.39, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

ABT

Health Care Equipment & Services industry group

1.39

Group distribution
Max
7.79
Q3
4.29
Median
1.95
ABT
1.39
Q1
1.33
Min
0.04
Largest peers
ISRG
4.61
SYK
2.11
ABT
1.39
CVS
0.87
MCK
0.85
UNH
0.80
MDT
--
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Where Abbott Laboratories (ABT) stands on current ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Abbott Laboratories (ABT) has debt-to-equity ratio of 0.65, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ABT

Health Care Equipment & Services industry group

0.65

Group distribution
Max
2.02
Q3
1.01
ABT
0.65
Median
0.60
Q1
0.16
Min
0.00
Largest peers
CVS
1.01
UNH
0.74
SYK
0.66
ABT
0.65
MDT
0.57
ISRG
--
MCK
--
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Where Abbott Laboratories (ABT) stands on debt-to-equity ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
Current Ratio (MRQ)1.391.95
Debt-to-Equity Ratio (MRQ)0.650.60
Net Debt / EBITDA2.292.21

Dividends

Dividend Yield (TTM)

Abbott Laboratories (ABT) has dividend yield of 2.86%, 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.

ABT

Health Care Equipment & Services industry group

2.86%

Group distribution
ABT
2.86%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MDT
3.59%
ABT
2.86%
CVS
2.61%
UNH
2.27%
SYK
1.13%
MCK
0.42%
ISRG
0.00%
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Where Abbott Laboratories (ABT) stands on dividend yield within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Abbott Laboratories (ABT) has payout ratio of 67.23%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

ABT

Health Care Equipment & Services industry group

67.23%

Group distribution
ABT
67.23%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CVS
116.67%
MDT
76.14%
ABT
67.23%
UNH
66.57%
SYK
39.81%
MCK
8.26%
ISRG
0.00%
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Where Abbott Laboratories (ABT) stands on payout ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Abbott Laboratories (ABT) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: ABTIndustry group median
Dividend Yield (TTM)2.86%0.00%
Dividend Payout Ratio (TTM)67.23%0.00%