AbbVie Inc. (ABBV) stock analysis

P/E above its 5-year median

AbbVie's P/E of 83.3 is above its own 5-year median of 56.8.

P/E above the industry

AbbVie's P/E of 83.3 is above the Drugs median of 25.1.

EV/EBITDA above its 5-year median

AbbVie's EV/EBITDA of 34.7 is above its 5-year median of 27.2.

P/S above the industry

AbbVie's price-to-sales of 8.10 is above the Drugs median of 4.80 (book value is negative, so we use sales).

Trading above fair value

The share price of $294.98 is above our fair value estimate of $157.38.

Margin of safety under 20%

The price is 87.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -29.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 67.7% over the last twelve months, against a 5-year average of -1.7% a year.

Growing faster than the industry

Revenue grew 10.4% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

AbbVie lowered its Full-Year Ended December 31, 2026 Adjusted Diluted EPS outlook on Oct 5, 2026.

Gross margin improving

Gross margin was 71.5% over the last twelve months, against 70.9% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 20.1%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 1.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.8% over the last twelve months, against a 5-year average of 12.9%.

Net margin above the industry

AbbVie's net margin of 9.8% is above the Drugs median of -53.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 27.5% of total debt.

Interest well covered

Operating income covers interest expense 5.8 times.

Short-term assets don't cover short-term debts

Current assets are 0.81 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AbbVie paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; AbbVie yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 190% of net income, leaving little room.

Covered by free cash flow

Dividends take 65.8% of free cash flow.