Abbott Laboratories

Health Care
Biotechnology: Pharmaceutical Preparations
www.abbottinvestor.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $199.24B
PE 35
Debt $14.98B
Cash $7.56B
EV $206.66B
FCF $6.49B

Earnings

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Sales & Net Margins

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Earnings	$5.74B
EBIT	$6.78B
ROE	14%
ROA	9%
FCF	$6.49B
Equity	$40.03B
Growth Stability	17%
PE	34.69
PEG	3.44
PB	4.98
P/FCF	30.72
P/S	4.83
Price/Cash	0.04
Debt/Equity	0.37
Debt/FCF	2.31
Net Margins	13%
Gross Margins	56%
Op. Margins	16%
Earnings CAGR	24%
Sales Growth YoY	5%
Sales Growth QoQ	2%
Sales CAGR	10%
FCF CAGR	17%
Equity CAGR	7%
Earnings Stability	0.53
Earnings Growth YoY	15%
Earnings Growth QoQ	26%
Earnings CAGR 5Y	10%

Sales CAGR 5Y	6%
FCF CAGR 5Y	2%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	-19%
Equity CAGR 3Y	4%
Market Cap	$199.24B
Revenue	$41.22B
Dividend Yield	2%
Payout Ratio	66%
Assets	$74.36B
Total Debt	$14.98B
Cash	$7.56B
Shares Outstanding	1.73B
EV	206.66B
Earnings Score	81%
Moat Score	92%
Safety Score	63%
Final Score	79%
Working Capital	8.9B
Current Ratio	1.6
Gross Profit	$22.90B
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Abbott manufactures and markets medical devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, molecular diagnostic platforms, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.

SEC Filings

Direct access to Abbott Laboratories (ABT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Abbott Laboratories compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Abbott Laboratories compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 53%

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Abbott Laboratories Discounted Cash Flow

Fully customizable DCF calculator online for Abbott Laboratories.

Years

Calculation mode

= $208B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.5B	$7.6B	$8.8B	$10B	$12B	$14B	$16B	$19B	$22B	$26B	$30B	$303B
DCF		$6.9B	$7.3B	$7.7B	$8.2B	$8.7B	$9.2B	$9.8B	$10B	$11B	$12B	$117B
Value	$208B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	22%	7%	2%	8%	11%	13%	16%	16%	14%	13%
ROA	-	8%	6%	3%	5%	7%	7%	11%	11%	9%	9%
ROE	-	21%	7%	2%	8%	12%	14%	20%	19%	15%	14%

Good Net Margins (13.42%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	5.58	11.98	6.36	3.99	4.27	3.28	2.17	2.44	3.12	2.31
Debt over Equity	0.36	0.42	1.06	0.91	0.64	0.61	0.57	0.52	0.52	0.41	0.37
Growth Stability	-	-	-	17%	100%	100%	100%	100%	100%	93%	17%

Neutral Debt/FCF ratio (2.31)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.37)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (17%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	2%	31%	12%	4%	8%	24%	1%	-8%	6%
Earnings YoY growth	-	94%	-68%	-66%	403%	56%	22%	57%	-2%	-17%	10%
Equity YoY growth	-	-1%	-3%	50%	-1%	2%	5%	9%	2%	5%	6%
FCF YoY growth	-	-200%	14%	141%	11%	-8%	27%	51%	-10%	-35%	2%