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Abbott Laboratories
ABT : NYSE : Health Care
$40.54 up0.65 | 1.60%
Today's Range: 40.01 - 40.90
Avg. Daily Volume: 6,960,100
10/07/15 - 1:28 PM ET

Financial Analysis

ABBOTT LABORATORIES's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ABBOTT LABORATORIES has strong liquidity. Currently, the Quick Ratio is 1.60 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.51% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)5170.05057.0
EBITDA ($mil)1191.01200.0
EBIT ($mil)851.0800.0
Net Income ($mil)784.0465.0

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)11177.07062.0
Total Assets ($mil)44125.041475.0
Total Debt ($mil)8761.07365.0
Equity ($mil)23008.023602.0

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin61.4160.57
EBITDA Margin23.0323.72
Operating Margin16.4615.82
Sales Turnover0.460.47
Return on Assets10.245.77
Return on Equity10.377.52
Debt Q2 FY15 Q2 FY14
Current Ratio2.31.85
Interest Expense44.036.0
Interest Coverage19.3422.22

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)1490.441503.7
Div / share0.240.22
Book value / share15.4415.7
Institutional Own % n/a n/a
Avg Daily Volume6784757.04618348.0


BUY. The current P/E ratio indicates a discount compared to an average of 33.47 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 19.38. To use another comparison, its price-to-book ratio of 2.64 indicates valuation on par with the S&P 500 average of 2.58 and a significant discount versus the industry average of 14.77. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ABBOTT LABORATORIES proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ABT 25.96 Peers 33.47   ABT 18.13 Peers 24.35

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ABT 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.

ABT is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ABT 16.84 Peers 22.74   ABT 0.28 Peers 0.78

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ABT 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.

ABT trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABT 2.64 Peers 14.77   ABT 37.71 Peers 7.03

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ABT is trading at a significant discount to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ABT is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ABT 2.96 Peers 5.44   ABT 4.33 Peers 14.15

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.

ABT is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ABT significantly trails its peers on the basis of sales growth



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