AbbVie logged a -0.3% change during today's morning session, and is now trading at a price of $227.02 per share.
AbbVie returned gains of 24.5% last year, with its stock price reaching a high of $244.81 and a low of $164.39. Over the same period, the stock outperformed the S&P 500 index by 11.5%. More recently, the company's 50-day average price was $227.43. AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacture, commercialization, and sale of medicines and therapies worldwide. Based in North Chicago, IL, the Large-Cap Health Care company has 55,000 full time employees. AbbVie has offered a 2.9% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $33,266 | $45,804 | $56,197 | $58,054 | $54,318 | $56,334 |
| Operating Margins | 39% | 25% | 32% | 31% | 23% | 16% |
| Net Margins | 24% | 10% | 21% | 20% | 9% | 8% |
| Net Income (M) | $7,882 | $4,616 | $11,542 | $11,836 | $4,863 | $4,278 |
| Net Interest Expense (M) | -$1,509 | -$2,280 | -$2,384 | -$2,044 | -$1,684 | -$2,160 |
| Depreciation & Amort. (M) | $464 | $666 | $803 | $778 | $752 | $764 |
| Diluted Shares (M) | 1,484 | 1,673 | 1,777 | 1,778 | 1,773 | 1,773 |
| Earnings Per Share | $5.28 | $2.72 | $6.45 | $6.63 | $2.72 | $2.39 |
| EPS Growth | n/a | -48.48% | 137.13% | 2.79% | -58.97% | -12.13% |
| Avg. Price | $65.1 | $80.3 | $104.86 | $142.88 | $154.97 | $227.66 |
| P/E Ratio | 12.28 | 29.41 | 16.18 | 21.49 | 56.77 | 94.86 |
| Free Cash Flow (M) | $12,772 | $16,790 | $21,990 | $24,248 | $22,062 | $17,832 |
| CAPEX (M) | $552 | $798 | $787 | $695 | $777 | $974 |
| EV / EBITDA | 9.13 | 16.32 | 13.46 | 16.24 | 23.75 | 47.5 |
| Total Debt (M) | $66,728 | $86,022 | $76,670 | $63,270 | $59,385 | $73,645 |
| Net Debt / EBITDA | 1.99 | 6.45 | 3.57 | 2.86 | 3.45 | 6.88 |
| Current Ratio | 3.18 | 0.84 | 0.79 | 0.96 | 0.87 | 0.66 |
AbbVie has declining EPS growth, not enough current assets to cover current liabilities because its current ratio is 0.66, and a highly leveraged balance sheet. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and generally positive cash flows. Furthermore, AbbVie has decent operating margins with a negative growth trend.
AbbVie's Valuation Is in Line With Its Sector Averages:
AbbVie has a trailing twelve month P/E ratio of 172.3, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $12.13, the company has a forward P/E ratio of 18.7. The 12.6% compound average growth rate of AbbVie's historical and projected earnings per share yields a PEG ratio of 13.66. This suggests that these shares are overvalued. The company's shares are currently trading 2161.2% below their Graham number.
AbbVie Has an Average Rating of Buy:
The 29 analysts following AbbVie have set target prices ranging from $184.0 to $289.0 per share, for an average of $243.55 with a buy rating. The company is trading -6.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
AbbVie has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 75.1% of the company's shares, and the insider ownership rate stands at 0.1%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $40,352,183,951.
