Fundamental analysis: Abbott Laboratories (ABT)

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Modest), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business growth has been almost stagnant. It's been below average when measured against peer companies.
Abbott Laboratories business trend stability is good. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 8.0

ABT profit margins -on goods and services sold- are usually very good. They stand slightly better than rival companies.
Business profit on sales tends to be very good. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 5.9

Abbott Laboratories profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
In recent years, earnings -on operations- have been growing at a low step, which has been slightly better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares below average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be rather normal in relation to similar stocks.
In past years, profits -before income taxes- grew at a good speed. It was somewhat better than rivals.
In the previous years, growth trend on total net profit has been good, and almost average when measured against peer companies.
Earnings per share have grown at a good rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 7.3

ABT managed to pay little to no income taxes on profits made in the past years. It's been slightly worse than peers.
Research and development expenses consume a sparse portion of revenues. It's great when measured against competitors.
The company grows modestly in relation to research and development efforts. It stands rather normal in relation to rival companies.

Profitability score: 8.5

Abbott Laboratories usually gets excellent returns on the resources it controls. It proves top tier when measured against peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.8

ABT usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands top tier when measured against rival firms.
The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved close to average when compared to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks mediocre against comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks weak when measured against competitors.

Balance Sheet score: 5.8

Abbott Laboratories intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a very weak position compared to similar firms.
Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains slightly better than rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a very weak position compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are mostly on cash. It still ranks top tier when measured against peers.
Normally has approximately four months of sales worth in inventory. It comes up as in good shape compared to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be better than most peers.
On average pays suppliers approximately three months after the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's excellent in relation to similar companies.
Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.3

Abbott Laboratories looks very expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still top tier when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks similar to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly better than peer firms.
In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 6.6

Company at a glance: Abbott Laboratories (ABT)

Sector, industry: Healthcare, Medical Devices

Market Cap: 178.89 billions

Revenues TTM: 41.51 billions

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.