AbbVie Inc.
Find Ratings ReportsABBVIE INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ABBVIE INC has weak liquidity. Currently, the Quick Ratio is 0.63 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 39.95% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 14301.0 | 15121.0 |
EBITDA ($mil) | 6575.0 | 8231.0 |
EBIT ($mil) | 4499.0 | 6074.0 |
Net Income ($mil) | 822.0 | 2473.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 12816.0 | 9229.0 |
Total Assets ($mil) | 134711.0 | 138805.0 |
Total Debt ($mil) | 60286.0 | 64191.0 |
Equity ($mil) | 10360.0 | 17254.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 84.62 | 86.68 |
EBITDA Margin | 45.97 | 54.43 |
Operating Margin | 31.46 | 40.17 |
Sales Turnover | 0.4 | 0.42 |
Return on Assets | 3.6 | 8.52 |
Return on Equity | 46.94 | 68.6 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.87 | 0.96 |
Debt/Capital | 0.85 | 0.79 |
Interest Expense | 549.0 | 566.0 |
Interest Coverage | 8.19 | 10.73 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 1765.94 | 1769.18 |
Div / share | 1.48 | 1.41 |
EPS | 0.46 | 1.38 |
Book value / share | 5.87 | 9.75 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 5307085.0 | 5210054.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 30.89 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, ABBVIE INC seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ABBV 66.37 | Peers 85.83 | ABBV 14.01 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ABBV is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ABBV is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ABBV 14.80 | Peers 18.08 | ABBV 0.21 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ABBV is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ABBV trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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ABBV 30.89 | Peers 19.07 | ABBV -58.70 | Peers 12.58 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ABBV is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ABBV is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ABBV 5.89 | Peers 84.44 | ABBV -6.44 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ABBV is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ABBV significantly trails its peers on the basis of sales growth. |
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