Abbott Laboratories (ABT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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IDEXX Laboratories, Inc.

Medtronic Plc

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Danaher Corp.

Becton, Dickinson & Co.

Abbott Laboratories

Why is Abbott Laboratories ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.62 times

Healthy long term growth as Operating profit has grown by an annual rate 13.45%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 9,037 MM
ROCE(HY) Highest at 31.01%
DEBT-EQUITY RATIO (HY) Lowest at 12.17 %

With ROCE of 13.01%, it has a attractive valuation with a 4.85 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.01%, its profits have risen by 140.3% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Abbott Laboratories for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Abbott Laboratories

-13.56%

0.66

22.12%

S&P 500

13.95%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.51%

EBIT Growth (5y)

13.45%

EBIT to Interest (avg)

17.68

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

29.33%

Pledged Shares

Institutional Holding

80.97%

ROCE (avg)

151,913.83%

ROE (avg)

280,862.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.35

EV to EBIT

37.25

EV to EBITDA

25.84

EV to Capital Employed

4.85

EV to Sales

6.32

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

13.01%

ROE (Latest)

27.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 9,037 MM

ROCE(HY)

Highest at 31.01%

DEBT-EQUITY RATIO (HY)

Lowest at 12.17 %

DIVIDEND PER SHARE(HY)

Highest at USD 5.82

INTEREST COVERAGE RATIO(Q)

Highest at 2,111.85

RAW MATERIAL COST(Y)

Fallen by -3.23% (YoY

NET PROFIT(9M)

Higher at USD 12,366.09 MM

NET SALES(Q)

Highest at USD 11,142 MM

OPERATING PROFIT(Q)

Highest at USD 2,851 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.59 %

PRE-TAX PROFIT(Q)

Highest at USD 2,219 MM

-4What is not working for the Company

NET PROFIT(Q)

At USD 1,857.09 MM has Fallen at -45.06%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.82 times

Here's what is working for Abbott Laboratories

Operating Cash Flow

Highest at USD 9,037 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 2,111.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 12.17 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 5.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 11,142 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 2,851 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 25.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 2,219 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -3.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Abbott Laboratories

Net Profit

At USD 1,857.09 MM has Fallen at -45.06%

over average net sales of the previous four periods of USD 3,380.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 5.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio