ABBV AbbVie Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Valuation is an outlier versus sector averages (Avg P/E: 27.34, Avg P/B: positive), with AbbVie’s metrics distorted by capital structure; while forward multiples suggest recovery, current metrics warn of distress.
- Forward P/E of 19.16 is in line with long-term pharma sector norms and below current P/E of 176
- Price/Sales of 6.89 is justified by high gross margins and premium brand portfolio
- Current P/E of 176.03 is dangerously high and indicative of earnings collapse, not growth premium
- Price/Book of -155.42 signals negative equity—extreme financial engineering or accumulated losses
Despite strong revenue momentum and 1Y price return of +41.8%, earnings trajectory remains deeply negative, creating a divergence between top-line health and bottom-line viability that markets may not sustain indefinitely.
- Revenue Growth of 9.10% YoY shows continued commercial strength, possibly from immunology or oncology franchises
- Analyst target of $243.55 implies confidence in earnings rebound and pipeline execution
- Earnings Growth of -88.70% YoY raises doubts about cost base and post-Humira transition sustainability
- Q/Q Earnings Growth down -88.10% suggests ongoing margin pressure or one-time charges not yet resolved
AbbVie has historically delivered consistent earnings beats and margin expansion, but the past year has seen a sharp reversal in profitability and estimate accuracy, undermining prior reliability.
- Historical ROE of 137.96% demonstrates exceptional capital efficiency and leverage management over time
- Long-term price appreciation of +187.1% over 5 years outperforms nearly all peers including TMO (+40.7% 6M) and MRK (-2.0% 1Y)
- Recent earnings surprises have deteriorated sharply: -55.6% in Q3 2025 and average -16.25% over last 4 quarters
- EPS YoY growth down -38.0%, reversing a long history of stable growth
Financial health is obscured by missing leverage and liquidity data, but the negative book value and lack of transparency raise red flags compared to peers like ABT (D/E 0.25) and MRK (0.80), which maintain clear balance sheets.
- Operating Cash Flow and Free Cash Flow likely strong given high operating margin and revenue growth (inferred)
- Current Ratio and Quick Ratio, while low (0.72 and 0.47), may reflect efficient working capital in pharma
- Debt/Equity, Total Debt, and Total Cash all unreported—critical opacity for a leveraged firm
- Negative Book Value (implied by -155x P/B) suggests equity depletion, possibly from buybacks or losses
The dividend appears resilient on yield and policy, but fundamentally fragile due to extreme payout ratio, making it vulnerable to earnings shortfalls or leverage constraints.
- Dividend Yield of 2.98% is attractive in a low-yield environment and exceeds ABT (1.8%) and MRK (3.0%)
- Dividend has been maintained despite earnings volatility, indicating policy commitment
- Payout Ratio of 490.15% is unsustainable—dividend is not earnings-covered, increasing cut risk
- No data on dividend growth history or consistency, limiting confidence in long-term policy
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ABBV and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ABBV
AbbVie Inc.
Primary
|
+187.1% | +69.5% | +41.8% | +28.3% | +2.7% | +6.0% |
|
MRK
Merck & Co., Inc.
Peer
|
+42.2% | +2.0% | -2.0% | +24.6% | +10.5% | +7.7% |
|
ABT
Abbott Laboratories
Peer
|
+25.7% | +34.2% | +15.7% | -2.3% | +0.9% | +3.4% |
|
TMO
Thermo Fisher Scientific Inc.
Peer
|
+21.9% | +6.9% | +8.9% | +40.7% | +9.6% | +1.1% |
|
AMGN
Amgen Inc.
Peer
|
+65.4% | +30.6% | +17.6% | +24.6% | +13.3% | +5.2% |
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
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Healthcare Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ABBV
AbbVie Inc.
|
NEUTRAL | $410.67B | 176.03 | 138.0% | 4.0% | $232.36 | |
|
MRK
Merck & Co., Inc.
|
BULLISH | $230.65B | 12.29 | 39.5% | 29.6% | $92.92 | |
|
ABT
Abbott Laboratories
|
NEUTRAL | $227.08B | 16.39 | 30.6% | 31.9% | $130.59 | |
|
TMO
Thermo Fisher Scientific Inc.
|
NEUTRAL | $217.96B | 33.45 | 13.1% | 15.0% | $578.71 | |
|
AMGN
Amgen Inc.
|
NEUTRAL | $181.33B | 26.02 | 81.7% | 19.5% | $336.74 |
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 | Sale | 42,370 | $8,407,055 |
| 2025-08-12 | SALEKI-GERHARDT AZITA | Chief Operating Officer | Option Exercise | 42,370 | $2,324,418 |
| 2025-08-05 | DONOGHOE NICHOLAS | Officer | Sale | 13,295 | $2,639,253 |
Wall Street Analysts
Professional analyst ratings and price targets