AbbVie Inc. Fundamental Analysis (NYSE: ABBV)
AbbVie Inc. (NYSE: ABBV) shows weak financial fundamentals with a PE ratio of 50.43, profit margin of 15.68%, and ROE of -2.03%. The company generates $65.9B in annual revenue with moderate year-over-year growth of 8.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABBV's fundamental strength across five key dimensions:
Efficiency Score
WeakABBV struggles to generate sufficient returns from assets.
Valuation Score
ModerateABBV shows balanced valuation metrics.
Growth Score
ModerateABBV shows steady but slowing expansion.
Financial Health Score
ModerateABBV shows balanced financial health with some risks.
Profitability Score
ModerateABBV maintains healthy but balanced margins.
Key Financial Metrics
Is ABBV Expensive or Cheap?
P/E Ratio
ABBV trades at 50.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABBV's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values AbbVie Inc. at -113.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.62 times EBITDA. This signals the market has high growth expectations.
How Well Does ABBV Make Money?
Net Profit Margin
For every $100 in sales, AbbVie Inc. keeps $15.68 as profit after all expenses.
Operating Margin
Core operations generate 35.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.03 in profit for every $100 of shareholder equity.
ROA
AbbVie Inc. generates $7.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AbbVie Inc. generates strong operating cash flow of $20.04B, reflecting robust business health.
Free Cash Flow
AbbVie Inc. generates strong free cash flow of $18.83B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.65 in free cash annually.
FCF Yield
ABBV converts 3.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
-113.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-17.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.03
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How ABBV Stacks Against Its Sector Peers
| Metric | ABBV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.43 | 31.66 | Worse (Expensive) |
| ROE | -202.50% | 501.00% | Weak |
| Net Margin | 15.68% | -3647.00% (disorted) | Strong |
| Debt/Equity | -17.65 | -0.30 (disorted) | Distorted |
| Current Ratio | 0.87 | 5.78 | Weak Liquidity |
| ROA | 7.01% | -262.00% (disorted) | Weak |
ABBV outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AbbVie Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.47%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-13.97%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
1.67%
Industry Style: Defensive, Growth, Innovation
Growing