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
Trailing Returns
Performance at a Glance
| Metric | Current stock: ABT | Industry group median |
|---|---|---|
| 1-Year Return | -34.06% | 6.07% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: ABT | Industry group median |
|---|---|---|
| 1-Year Volatility | 24.54% | 49.54% |
| Beta | 0.61 | 0.89 |
Company Profile
| Profile Item | ABT |
|---|---|
| Name | Abbott Laboratories |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Health Care Equipment & Services |
| GICS Industry | Health Care Equipment & Supplies |
| GICS Sub-Industry | Health Care Equipment |
| Market Capitalization | 153.59 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: ABT | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.70 | 28.09 |
| Price-to-Sales Ratio (TTM) | 3.40 | 1.94 |
| Price-to-Book Ratio (MRQ) | 2.95 | 2.78 |
| Free Cash Flow Yield | 4.13% | 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
- --
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%
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%
Profitability at a Glance
| Metric | Current stock: ABT | Industry 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
- --
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
- --
Financial Strength at a Glance
| Metric | Current stock: ABT | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.39 | 1.95 |
| Debt-to-Equity Ratio (MRQ) | 0.65 | 0.60 |
| Net Debt / EBITDA | 2.29 | 2.21 |
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%
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%
Dividends at a Glance
| Metric | Current stock: ABT | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.86% | 0.00% |
| Dividend Payout Ratio (TTM) | 67.23% | 0.00% |