About Abbott Laboratories
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.
Abbott Laboratories (ABT) is a Healthcare company in the Medical Devices industry with a market capitalisation of $176.4B. The stock trades at 32.99x trailing earnings and yields 2.47%.
- Sector
- Healthcare
- Industry
- Medical Devices
- Market cap
- $176.4B
- P/E ratio
- 32.99
- Forward P/E
- 16.81
- EPS (TTM)
- $3.09
- Revenue (TTM)
- $46.6B
- Free cash flow
- $7.2B
- Profit margin
- 11.6%
- Dividend yield
- 2.47%
- Beta
- 0.59
- Shares outstanding
- 1.7B
Financial health: Strong7.7/10
7 strengths, 1 concern. Weakest points: earnings growth.
- Debt to equity: 0.25 (Strong, benchmark < 0.5) — Debt of 0.25x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.5y (Strong, benchmark < 4 years) — Net debt of $4.0B is 0.5x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 1.58 (Strong, benchmark > 1.5) — Short-term assets cover 1.58x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 10.6% (Watch, benchmark > 15%) — Earns 10.6% on shareholder equity, short of the > 15% mark.
- Gross margin: 56.9% (Strong, benchmark > 40%) — Keeps 56.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 11.7% (Strong, benchmark > 10%) — Turns 11.7% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $7.4B (Strong, benchmark positive) — Generated $7.4B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 13.0% (Strong, benchmark > 10%) — Revenue changed 13.0% year on year, comfortably past the > 10% mark.
- Earnings growth: -47.5% (Concern, benchmark > 10%) — Earnings changed -47.5% year on year, well short of the > 10% mark.
- PEG ratio: 1.87 (Watch, benchmark < 1) — At 1.87, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 79.0% (Watch, benchmark < 60%) — Pays out 79.0% of earnings as dividends — above the level usually considered sustainable.