ABBV AbbVie Inc. - Fundamental Analysis
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ABBV Stock | Fundamental Analysis & Investment Insights
NYSE
Healthcare
Drug Manufacturers - General
Current Price
Live
$219.26
Analyst Target
$245.22
+11.8%
Upside
52W High
$244.81
52W Low
$164.39
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$387.52B
P/E
163.63
ROE
138.0%
Profit margin
4.0%
Debt/Equity
N/A
Dividend yield
3.05%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
68%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed health profile with a Piotroski F-Score of 4/9 indicating stable but not strong fundamentals, while the absence of an Altman Z-Score prevents a clear distress risk assessment. Despite robust operating margins and consistent revenue growth, the company faces significant headwinds from negative earnings growth, an extremely high P/E ratio, and a dangerously elevated payout ratio. Strong historical price performance and analyst buy sentiment are counterbalanced by bearish insider activity and deteriorating profitability trends. The stock appears to trade at a substantial premium to its intrinsic value, suggesting limited margin of safety.
Key Strengths
High operating margin (35.50%) indicating strong pricing power and cost control
Consistent revenue growth (9.10% YoY) outpacing sector average
Strong track record of earnings surprises (22 out of 25 quarters beat estimates)
Attractive dividend yield (3.05%) above market average
Analyst consensus supports upside with target price 11.8% above current level
Key Risks
Extremely high P/E ratio (163.63) vs forward P/E (15.42), suggesting potential overvaluation on trailing basis
Earnings growth collapsing (YoY: -88.70%, Q/Q: -88.10%) indicating severe profitability deterioration
Unsustainable dividend payout ratio (490.15%) threatening dividend security
Weak liquidity position with current ratio (0.72) and quick ratio (0.47) below 1.0
Bearish insider sentiment with $11.05M in net sales and zero buys in last 6 months
AI Fair Value Estimate
Based on comprehensive analysis
$9.38
-95.7% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
45
Moderate
32
48
65
41
38
AI Verdict
Neutral with caution
Key drivers: High forward growth expectations priced in, Deteriorating earnings quality, Strong revenue momentum, Dividend sustainability concerns, Analyst optimism vs insider skepticism
Confidence
72%
Value
32/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 15.42 is reasonable for healthcare sector
Watchpoints
- Current P/E of 163.63 is extremely elevated
- Price/Book is negative (-146.66), indicating accounting distress
- Graham Number unavailable, Intrinsic Value ($9.38) far below market price
Future
48/100
Ref Growth rates
Positives
- Revenue growth (9.10% YoY) remains solid
Watchpoints
- Earnings growth collapsing (YoY: -88.70%)
- Q/Q earnings down 88.10%, signaling sharp downturn
Past
65/100
Ref Historical trends
Positives
- Consistent earnings beat history (22/25 quarters)
- Strong 5-year price appreciation (+140.3%)
- Operating margin stable near 35.5%
Watchpoints
- Recent EPS growth turning sharply negative
Health
41/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- ROE of 137.96% suggests aggressive capital efficiency (though potentially debt-driven)
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Current ratio (0.72) and quick ratio (0.47) signal liquidity risk
- Altman Z-Score unavailable, increasing uncertainty
Dividend
38/100
Ref Yield, Payout
Positives
- Dividend yield of 3.05% is attractive
Watchpoints
- Payout ratio of 490.15% is unsustainable
- Dividend Strength score of 20/100 indicates high risk
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$219.26
Analyst Target
$245.22
Upside/Downside
+11.8%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ABBV and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ABBV
AbbVie Inc.
Primary
|
+140.3% | +65.5% | +32.8% | +17.0% | -3.9% | +2.3% |
|
UNH
UnitedHealth Group Incorporated
Peer
|
+2.0% | -27.9% | -33.6% | +18.6% | -0.2% | -3.8% |
|
AZN
AstraZeneca PLC
Peer
|
+92.9% | +49.4% | +38.4% | +28.8% | +0.5% | -1.5% |
|
MRK
Merck & Co., Inc.
Peer
|
+60.7% | +8.0% | +12.1% | +38.6% | +9.7% | -1.5% |
|
JNJ
Johnson & Johnson
Peer
|
+54.8% | +39.0% | +52.5% | +35.4% | +4.0% | +7.0% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
163.63
Forward P/E
15.42
PEG Ratio
N/A
P/B Ratio
-146.66
P/S Ratio
6.5
EV/Revenue
7.56
EV/EBITDA
15.27
Market Cap
$387.52B
Profitability
Profit margins and return metrics
Profit Margin
4.0%
Operating Margin
35.5%
Gross Margin
71.46%
ROE
137.96%
ROA
9.59%
Growth
Revenue and earnings growth rates
Revenue Growth
+9.1%
Earnings Growth
-88.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-88.1%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
0.72
Weak
Quick Ratio
0.47
Poor
Cash/Share
$3.21
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-04
$N/A
2025-10-31
$1.86
+4.2% surprise
2025-07-31
$2.97
+2.1% surprise
2025-04-25
$2.46
+2.6% surprise
Healthcare Sector Comparison
Comparing ABBV against 146 companies in the Healthcare sector
(11 bullish, 60 neutral, 75 bearish)
P/E Ratio
163.63
This Stock
vs
197.75
Sector Avg
-17.3%
(Discount)
Return on Equity (ROE)
137.96%
This Stock
vs
-56.86%
Sector Avg
-342.6%
(Below Avg)
Profit Margin
4.0%
This Stock
vs
-20.8%
Sector Avg
-119.3%
(Weaker)
Revenue Growth
9.1%
This Stock
vs
62.23%
Sector Avg
-85.4%
(Slower)
Current Ratio
0.72
This Stock
vs
3.45
Sector Avg
-79.0%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ABBV
AbbVie Inc.
|
NEUTRAL | $387.52B | 163.63 | 138.0% | 4.0% | $219.26 | |
|
UNH
UnitedHealth Group Incorporated
|
NEUTRAL | $299.85B | 17.25 | 17.5% | 4.0% | $331.02 | |
|
AZN
AstraZeneca PLC
|
NEUTRAL | $288.2B | 30.48 | 21.7% | 16.2% | $92.95 | |
|
MRK
Merck & Co., Inc.
|
NEUTRAL | $271.83B | 14.4 | 39.5% | 29.6% | $108.83 | |
|
JNJ
Johnson & Johnson
|
NEUTRAL | $526.82B | 21.15 | 33.6% | 27.3% | $218.66 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-08-12 | SALEKI-GERHARDT AZITA | Chief Operating Officer | Option Exercise | 42,370 | $2,324,418 |
| 2025-08-12 | SALEKI-GERHARDT AZITA | Chief Operating Officer | Sale | 42,370 | $8,407,055 |
| 2025-08-05 | DONOGHOE NICHOLAS | Officer | Sale | 13,295 | $2,639,253 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
27 analysts
Wolfe Research
2026-01-08
Outperform
Peer Perform
Morgan Stanley
2025-12-12
Overweight
Overweight
HSBC
2025-12-10
Hold
Buy
UBS
2025-11-07
Neutral
Neutral
Piper Sandler
2025-11-05
Overweight
Overweight
Citigroup
2025-11-03
Neutral
Neutral
JP Morgan
2025-11-03
Overweight
Overweight
Guggenheim
2025-10-20
Buy
Buy
Raymond James
2025-10-17
Outperform
Outperform
Piper Sandler
2025-10-10
Overweight
Overweight
Past News Coverage
Recent headlines mentioning ABBV from our newsroom.
Newest → oldest
No matching news yet.