Abbott Laboratories

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ABT : NYSE : Health Care
$49.08 | %
Today's Range: 48.965 - 49.36
Avg. Daily Volume: 6761800.0
06/23/17 - 4:00 PM ET

Financial Analysis


ABBOTT LABORATORIES's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. ABBOTT LABORATORIES is extremely liquid. Currently, the Quick Ratio is 2.01 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 51.34% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)6335.04885.0
EBITDA ($mil)1441.0987.0
EBIT ($mil)667.0640.0
Net Income ($mil)419.0316.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)8860.03957.0
Total Assets ($mil)70887.039637.0
Total Debt ($mil)23974.08590.0
Equity ($mil)31362.020722.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin63.2260.92
EBITDA Margin22.7420.2
Operating Margin10.5313.1
Sales Turnover0.310.51
Return on Assets2.126.17
Return on Equity4.4410.29
Debt Q1 FY17 Q1 FY16
Current Ratio2.911.48
Debt/Capital0.430.29
Interest Expense209.046.0
Interest Coverage3.1913.91


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1735.271469.15
Div / share0.270.26
EPS0.220.04
Book value / share18.0714.1
Institutional Own % n/a n/a
Avg Daily Volume6726509.08636324.0

Valuation


HOLD. ABBOTT LABORATORIES's P/E ratio indicates a significant premium compared to an average of 44.62 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 2.73 indicates a discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 5.11. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ABT 55.36 Peers 44.62   ABT 19.18 Peers 28.17

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ABT is trading at a premium 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ABT 17.85 Peers 25.37   ABT 0.22 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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABT 2.73 Peers 5.11   ABT -36.88 Peers 114.13

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 3.83 Peers 5.26   ABT 9.36 Peers 14.54

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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