Abbott Laboratories Fundamental Analysis (TSX: ABT.TO)
Abbott Laboratories (TSX: ABT.TO) shows weak financial fundamentals with a PE ratio of 53.45, profit margin of 10.16%, and ROE of -22.71%. The company generates $4.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABT.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakABT.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateABT.TO shows balanced valuation metrics.
Growth Score
ModerateABT.TO shows steady but slowing expansion.
Financial Health Score
ModerateABT.TO shows balanced financial health with some risks.
Profitability Score
WeakABT.TO struggles to sustain strong margins.
Key Financial Metrics
Is ABT.TO Expensive or Cheap?
P/E Ratio
ABT.TO trades at 53.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABT.TO's PEG of -17.94 indicates potential undervaluation.
Price to Book
The market values Abbott Laboratories at -13.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1049.14 times EBITDA. This signals the market has high growth expectations.
How Well Does ABT.TO Make Money?
Net Profit Margin
For every $100 in sales, Abbott Laboratories keeps $10.16 as profit after all expenses.
Operating Margin
Core operations generate 14.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-22.71 in profit for every $100 of shareholder equity.
ROA
Abbott Laboratories generates $8.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Abbott Laboratories produces operating cash flow of $965.09M, showing steady but balanced cash generation.
Free Cash Flow
Abbott Laboratories generates strong free cash flow of $815.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.47 in free cash annually.
FCF Yield
ABT.TO converts 0.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-17.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
-13.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
212.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.23
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.56
vs 25 benchmark
How ABT.TO Stacks Against Its Sector Peers
| Metric | ABT.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.45 | 31.31 | Worse (Expensive) |
| ROE | -22.71% | 540.00% | Weak |
| Net Margin | 10.16% | 21599.00% | Weak |
| Debt/Equity | -0.24 | 0.54 | Strong (Low Leverage) |
| Current Ratio | 0.84 | 5.63 | Weak Liquidity |
| ROA | 8.17% | -93.00% (disorted) | Weak |
ABT.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Abbott Laboratories's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation