Abbott Laboratories

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ABT : NYSE : Health Care
$40.93 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 9148900.0
01/13/17 - 4:00 PM ET

Financial Analysis


ABBOTT LABORATORIES's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ABBOTT LABORATORIES has weak liquidity. Currently, the Quick Ratio is 0.94 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 remained virtually unchanged only decreasing by 1.58% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)5302.05150.0
EBITDA ($mil)1330.01235.0
EBIT ($mil)990.0861.0
Net Income ($mil)-329.0580.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4507.06139.0
Total Assets ($mil)39497.041725.0
Total Debt ($mil)8510.08200.0
Equity ($mil)20776.021111.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin61.0161.86
EBITDA Margin25.0823.98
Operating Margin18.6716.72
Sales Turnover0.520.49
Return on Assets3.4610.93
Return on Equity4.7712.05
Debt Q3 FY16 Q3 FY15
Current Ratio1.561.82
Debt/Capital0.290.28
Interest Expense47.041.0
Interest Coverage21.0621.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1472.311491.72
Div / share0.260.24
EPS-0.240.39
Book value / share14.1114.15
Institutional Own % n/a n/a
Avg Daily Volume9133757.09275152.0

Valuation


HOLD. ABBOTT LABORATORIES's P/E ratio indicates a discount compared to an average of 69.11 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.89 indicates valuation on par with the S&P 500 average of 2.84 and a significant discount versus the industry average of 8.30. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ABT 61.70 Peers 69.11   ABT 20.76 Peers 23.72

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ABT 16.76 Peers 23.81   ABT 2.17 Peers 1.00

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABT 2.89 Peers 8.30   ABT -60.48 Peers 84.51

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.

 

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 2.90 Peers 5.77   ABT 0.65 Peers 17.12

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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