Shares of the drug manufacturer were falling 0.3% to $59.26.
The dividend is in line with the company's previous dividend. The new quarterly dividend is payable on Nov. 17 to all shareholders or record as of the close of business on Oct. 15. The ex-dividend date is Oct. 13.
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TheStreet Ratings team rates ABBVIE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABBVIE INC (ABBV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to other companies in the Pharmaceuticals industry and the overall market, ABBVIE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- ABBV's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for ABBVIE INC is currently very high, coming in at 81.69%. Regardless of ABBV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ABBV's net profit margin of 22.28% compares favorably to the industry average.
- The debt-to-equity ratio is very high at 2.83 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ABBV has managed to keep a strong quick ratio of 2.23, which demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has decreased to $1,717.00 million or 15.70% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: ABBV Ratings Report