ABB Ltd.Find Ratings Reports
ABB LTD's gross profit margin for the second quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ABB LTD has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 5.76% 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||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||6154.0||7171.0|
|Net Income ($mil)||319.0||64.0|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||4396.0||3228.0|
|Total Assets ($mil)||46903.0||45464.0|
|Total Debt ($mil)||13537.0||11386.0|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||36.16||35.71|
|Return on Assets||3.27||3.34|
|Return on Equity||11.68||7.25|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||2134.58||2132.82|
|Div / share||0.0||0.79|
|Book value / share||5.69||6.05|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1485947.0||2385031.0|
BUY. The current P/E ratio indicates a significant premium compared to an average of 24.78 for the Electrical Equipment, Appliance, Component Manufac subsector and a premium compared to the S&P 500 average of 34.80. Conducting a second comparison, its price-to-book ratio of 4.70 indicates a premium versus the S&P 500 average of 3.73 and a significant discount versus the subsector average of 8.72. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount.
|ABB 39.93||Peers 37.65||ABB 27.50||Peers 23.27|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation.
ABB is trading at a valuation on par with its peers.
Premium. 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.
ABB is trading at a premium to its peers.
|ABB NA||Peers 30.49||ABB NA||Peers 21.45|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
Neutral. 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.
Ratio not available.
|ABB 4.70||Peers 8.72||ABB 48.88||Peers -0.65|
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.
ABB 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.
ABB is expected to have an earnings growth rate that significantly exceeds its peers.
|ABB 2.17||Peers 4.13||ABB -7.64||Peers -4.57|
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.
ABB 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.
ABB significantly trails its peers on the basis of sales growth.