ABB Ltd (ABBNY) stock analysis
ABBNYOTCSwitchgear & Switchboard ApparatusFiscal year ends December 31Also trades as ABLZF
Financials through fiscal 2023, year ended Dec 31, 2023Last filing: 20-F on Feb 23, 2024
$89.63−1.42 (-1.56%)
Close on Oct 19, 2026Market cap –P/E 44.6Yield –
Margins
Share of revenue, fiscal years 2009 to 2023
Gross margin
34.8%+3.9 pts over 5 years
Operating margin
15.1%+7.1 pts over 5 years
Net margin
–
Growth rates
Compound annual growth to fiscal 2023
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +9.5% | +7.2% | +3.1% | -2.6% | |
| Gross profit | +15.5% | +12.5% | +5.6% | -0.7% | |
| Operating income | +46.0% | +45.1% | +17.0% | +1.1% | |
| EPS, diluted | +54.6% | -6.1% | +14.5% | +5.2% | |
| Free cash flow | +570.5% | +52.2% | +10.3% | +3.3% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2014 | FY2018 | FY2023 | Trend |
|---|---|---|---|---|
| Current ratio | 1.60 | 1.19 | 1.18 | |
| Debt to equity | 0.47 | 0.62 | 0.58 | |
| Net debt to EBITDA | 0.41× | 1.65× | 0.70× | |
| Inventory turnover | 5.0× | 4.8× | 3.5× | |
| Capex to revenue | 2.6% | 2.8% | 2.4% | |
| Diluted shares | 2.29B | 2.14B | 1.87B |
Where the cash went
Fiscal 2019 to 2023, five years combined
ABB generated $12.93B from operations and spent $23.92B on capital expenditure, dividends and share buybacks. 16% of that went back into the business.
Generated
$12.93B
Used
$23.92B
Capital expenditure$3.81B16%Dividends$8.55B36%Share buybacks$11.57B48%
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2023 against fiscal 2022
5of 6 tests passed in fiscal 2023. Some tests lack the figures they need.
- ProfitableNet income above zero–
- Cash generatingOperating cash flow above zero$4.29B
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$4.29B vs –
- Less leverageLong-term debt to assets fell13.1% → 12.8%
- Better liquidityCurrent ratio rose1.18 → 1.18
- No dilutionShare count did not rise1.91B → 1.87B
- Gross margin improvedGross margin up on the prior year32.98% → 34.79%
- More efficientAsset turnover rose0.73 → 0.82
See a number that looks wrong?