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ABB Ltd (ABBNY)
OTHER OTC:ABBNY
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ABB Ltd
(OTC:ABBNY)
76Outperform
ABB Ltd (ABBNY) vs. S&P 500 (SPY)
Market Cap
$101.96B
Dividend Yield1.07%
Average Volume (3M)236.81K
Price to Earnings (P/E)25.7
Beta (1Y)1.00
Revenue Growth3.16%
EPS Growth5.77%
CountryUS
Employees107,900
SectorIndustrials
Sector Strength72
IndustryIndustrial Goods
Share Statistics
EPS (TTM)2.13
Shares Outstanding1,860,614,900
10 Day Avg. Volume345,026
30 Day Avg. Volume236,809
Financial Highlights & Ratios
PEG Ratio4.46
Price to Book (P/B)N/A
Price to Sales (P/S)12.59
Price to Cash Flow (P/CF)13.70
P/FCF Ratio15.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside-9.91% Downside
Rating ConsensusHold
Number of Analyst Covering3
ABB Ltd Business Overview & Revenue Model
Company DescriptionSwitzerland-based ABB Ltd. manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. It generates revenues from the following business areas: Electrification, Industrial Automation, Motion, Robotics & Discrete Automation and Corporate and Other.
How the Company Makes MoneyABB Ltd generates revenue through a diversified business model that encompasses four main divisions: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. The Electrification segment provides electrical solutions and components that are essential for power distribution and management. The Industrial Automation division offers control systems, measurement products, and related services that optimize industrial processes. The Motion segment supplies motors, drives, and services that improve energy efficiency and performance in various applications. Lastly, the Robotics & Discrete Automation division delivers robotic systems and software, catering primarily to the manufacturing industry. ABB's revenue streams are bolstered by its strong global presence and strategic partnerships, which help it tap into emerging markets and technological advancements.
ABB Ltd Financial Statement Overview
Summary
ABB Ltd exhibits strong financial health across all major financial statements. The company has achieved consistent revenue growth and maintains healthy profitability margins, showcasing operational efficiency. The balance sheet reflects financial stability with moderate leverage and strong equity returns, while the cash flow statements indicate robust cash generation capabilities. Overall, ABB Ltd is well-positioned in the Industrial Goods sector with a stable financial outlook.Income Statement
ABB Ltd has demonstrated strong revenue growth with a Revenue Growth Rate of 1.90% over the last year. The company maintains healthy profitability margins, with a Gross Profit Margin of 37.37% and a Net Profit Margin of 11.98% for 2024. Additionally, the EBIT and EBITDA margins are solid at 15.43% and 18.68% respectively. These indicators suggest a stable and profitable income statement performance.85
Very Positive
Balance Sheet
The company's balance sheet is robust with a Debt-to-Equity Ratio of 0.54, indicating moderate leverage. The Equity Ratio stands at 35.89%, showing a balanced capital structure. Return on Equity (ROE) is strong at 27.16%, reflecting efficient use of equity to generate profits. Overall, ABB Ltd's balance sheet reflects financial stability with manageable debt levels, though there's room for improvement in equity strength.78
Positive
Cash Flow
ABB Ltd's cash flow performance is impressive, with a Free Cash Flow Growth Rate of 8.81% year-over-year. The Operating Cash Flow to Net Income Ratio is 1.19, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is at 0.97, reflecting efficient conversion of net income into free cash flow. The cash flow statements suggest solid operational cash generation and effective capital management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 32.85B | 32.23B | 29.45B | 28.95B | 26.13B | Gross Profit |
| 12.27B | 11.21B | 9.71B | 9.47B | 7.88B | EBIT |
| 5.07B | 4.87B | 3.34B | 5.72B | 1.59B | EBITDA |
| 6.13B | 5.83B | 4.21B | 6.83B | 2.20B | Net Income Common Stockholders |
| 3.94B | 3.75B | 2.48B | 4.55B | 5.15B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.64B | 5.82B | 4.88B | 5.33B | 5.39B | Total Assets |
| 40.36B | 40.94B | 39.15B | 40.26B | 41.09B | Total Debt |
| 7.81B | 8.74B | 8.55B | 6.48B | 7.12B | Net Debt |
| 3.50B | 4.85B | 4.39B | 2.32B | 3.84B | Total Liabilities |
| 25.30B | 26.79B | 25.88B | 24.30B | 25.09B | Stockholders Equity |
| 14.49B | 13.41B | 12.78B | 15.58B | 15.69B |
| Cash Flow | Free Cash Flow | |||
| 3.83B | 3.52B | 525.00M | 2.51B | 999.00M | Operating Cash Flow |
| 4.67B | 4.29B | 1.29B | 3.33B | 1.69B | Investing Cash Flow |
| -725.00M | -1.61B | 981.00M | 2.31B | 6.76B | Financing Cash Flow |
| -3.33B | -2.90B | -2.39B | -4.97B | -8.18B |
ABB Ltd Technical Analysis
Positive
55.50
Price Trends
55.39
Positive
56.06
Negative
55.91
Positive
Market Momentum
-0.16
Negative
52.14
Neutral
80.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBNY, the sentiment is Positive. The current price of 55.5 is below the 20-day moving average (MA) of 55.71, above the 50-day MA of 55.39, and below the 200-day MA of 55.91, indicating a bullish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABBNY.
ABB Ltd Risk Analysis
ABB Ltd disclosed 27 risk factors in its most recent earnings report. ABB Ltd reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ABB Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $190.65B | 18.85 | 14.40% | 1.61% | -1.04% | 9.00% | |
76 Outperform | $101.96B | 25.72 | 28.23% | 1.07% | 3.16% | 5.77% | |
74 Outperform | $205.77B | 32.15 | 27.62% | 0.58% | -32.60% | -28.55% | |
72 Outperform | $63.06B | 28.21 | 9.66% | 1.88% | 10.29% | 22.72% | |
69 Neutral | $29.98B | 33.65 | 26.22% | 1.89% | -11.28% | -23.69% | |
68 Neutral | $135.33B | 24.56 | 33.10% | 2.07% | 5.05% | 2.73% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
ABBNY
ABB Ltd
55.93
8.85
18.80%
EMR
Emerson Electric Company
110.72
2.33
2.15%
GE
GE Aerospace
191.72
57.15
42.47%
HON
Honeywell International
208.59
13.01
6.65%
ROK
Rockwell Automation
265.15
-14.01
-5.02%
SIEGY
Siemens AG
124.15
25.19
25.45%
ABB Ltd Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -1.51% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
ABB reported a record year with significant achievements in operational performance, notably in the Electrification segment and overall regional growth. However, challenges in Robotics and Discrete Automation, as well as continued struggles in China and substantial losses in the E-mobility segment, present ongoing obstacles.Highlights
Record Year for ABB
ABB achieved a new record level for operational EBITA margin at 18.1% and a gross margin all-time high of 37.4%. Earnings per share increased by 6%, and the company delivered a free cash flow of $3.9 billion, with a free cash flow margin of 12%.
Electrification Segment Success
Electrification orders were up by 16% with a revenue growth of 11%, surpassing $4 billion for the first time. Operational EBITA improved by 19% to $863 million, resulting in a margin of 21.3%.
Strong Regional Growth
ABB's orders were up in all three regions. Europe saw a 9% increase, while the Americas improved by 7%. Excluding the backlog adjustments, China was only down by 1%.
Improvements in Robotics and Discrete Automation
Robotics and Discrete Automation turned a corner with positive order growth after eight quarters in decline, despite backlog adjustments.
Lowlights
Challenges in Robotics and Discrete Automation
While order growth was positive, backlog adjustments in Robotics and Discrete Automation led to de-bookings of about $130 million, significantly impacting growth.
Continued Weakness in China
China's orders were impacted by backlog adjustments, leading to a reported decline of 11%. Excluding these adjustments, China still faced challenges with a decline of 1%.
E-mobility Segment Losses
The E-mobility segment experienced significant losses of $272 million in 2024, with expectations of continued, albeit reduced, losses in 2025.
Company Guidance
During the call, ABB's management provided guidance reflecting a strong performance in 2024, with several key metrics indicating growth and improvement. The operational EBITA was up by 10% year-on-year, reaching a new record margin level of 18.1%. The company's free cash flow was reported at $3.9 billion, translating to a 12% margin, marking the second year of double-digit free cash flow margins. Return on Capital Employed (ROCE) stood at 22.9%, above the target of greater than 18%. For 2025, ABB expects mid-single-digit comparable revenue growth and further improvement in operational EBITA margin. The company also announced a new share buyback program of up to $1.5 billion. Despite challenges in certain business areas, ABB anticipates positive developments and aims to achieve new records in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.