ABB Investors - Our Quick Report For You.

ABB logged a 2.1% change during today's afternoon session, and is now trading at a price of $34.29 per share. The S&P 500 index moved 0.0% and the Nasdaq posted a 0.2% change. ABB's trading volume is 1,078,542 compared to the stock's average volume of 1,354,827.

ABB shares moved -8.3% over the last 52 weeks, with a high of $37.67 and a low of $24.27. During this time, the stock outperformed the S&P 500 index by 4.3%. As of January 2022, the company's 50-day average price is $31.0. ABB Ltd engages in manufacture and sale of electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. The large-cap Industrials company has 106,380 full time employees and is based in Zurich, Switzerland. ABB has returned a 2.7% dividend yield over the last 12 months.

The Company Has Positive Cash Flows and Earnings Trends:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $27,978 $26,134 $28,945
Revenue Growth n/a -6.59% 10.76%
Gross Margins 31.8% 30.1% 32.7%
Gross Margins Growth n/a -5.35% 8.64%
Operating Margins 8.1% 7.7% 11.6%
Operating Margins Growth n/a -4.94% 50.65%
Earnings Per Share $0.67 $2.43 $2.25
EPS Growth n/a 262.69% -7.41%
Free Cash Flow (MM) $1,563 $999 $2,510
FCF Growth n/a -36.08% 151.25%
Capital Expenditures (MM) -$762 -$694 -$820
Net Debt / EBITDA 1.96 1.27 0.36

ABB Is Reasonably Priced:

Compared to the Industrials sector's average of 21.46, ABB has a trailing twelve month P/E ratio of 16.7 and, according to its EPS guidance of 1.55, an expected P/E ratio of 22.1.

ABB's P/B ratio is 5.4 compared to its sector average of 3.7. Therefore the company is likely overvalued in terms of its equity. Additionally, the company's shares are currently trading 115.8% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.78 * 6.306) = $15.89

Most of the Market Indicators on ABB Are Negative:

4 analysts are following ABB and have set target prices ranging from $29 to $40 per share. On average, they have given the company a rating of hold. At the current price of $34.29, ABB is trading -2.2% away from its average analyst target price of $35.06 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.