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Abbott Laboratories
ABT : NYSE : Health Care
$37.86 -0.65 | -1.70%
Today's Range: 37.71 - 38.40
Avg. Daily Volume: 7,987,400
05/06/16 - 1:43 PM ET

Financial Analysis


ABBOTT LABORATORIES's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)4885.04897.0
EBITDA ($mil)0.01041.0
EBIT ($mil)524.0683.0
Net Income ($mil)311.02292.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)0.09849.0
Total Assets ($mil)0.043095.0
Total Debt ($mil)0.08903.0
Equity ($mil)0.021874.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin53.2462.24
EBITDA Margin0.021.25
Operating Margin10.7313.95
Sales Turnover0.00.47
Return on Assets0.09.74
Return on Equity0.09.26
Debt Q1 FY16 Q1 FY15
Current Ratio0.02.17
Debt/Capital0.00.29
Interest Expense0.037.0
Interest Coverage0.018.46


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1472.671488.76
Div / share0.260.24
EPS0.040.35
Book value / share0.014.69
Institutional Own % n/a n/a
Avg Daily Volume7314802.06689588.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 64.37 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 23.99. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ABBOTT LABORATORIES proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ABT 28.67 Peers 64.37   ABT NA Peers 28.96

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

ABT is trading at a significant discount to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ABT 16.50 Peers 23.29   ABT 1.02 Peers 0.97

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABT NA Peers 4.79   ABT 6.01 Peers 30.16

Neutral. 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.

Ratio not available.

 

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

However, ABT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ABT 2.92 Peers 4.57   ABT 0.01 Peers 20.88

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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