Education
About Us
Working with TipRanks
Follow Us
ABB Ltd (ABBNY)
OTHER OTC:ABBNY
Top Page
ABB Ltd
(OTC:ABBNY)
Select Model
Select Model
Rating:77Outperform
Price Target:
$83.00
▲(11.29% Upside)
ABB Ltd's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a positive outlook, while the high valuation presents a potential risk. Challenges in specific segments and regions are noted but are outweighed by the company's overall robust performance.
ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$136.26B
Dividend Yield0.8%
Average Volume (3M)11.28K
Price to Earnings (P/E)30.8
Beta (1Y)0.87
Revenue Growth6.26%
EPS Growth16.05%
CountryUS
Employees110,970
SectorN/A
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.66
Shares Outstanding1,843,899,200
10 Day Avg. Volume0
30 Day Avg. Volume11,277
Financial Highlights & Ratios
PEG Ratio4.62
Price to Book (P/B)6.84
Price to Sales (P/S)3.01
P/FCF Ratio25.86
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue4.05
Enterprise Value/Gross Profit10.27
Enterprise Value/Ebitda19.64
Forecast
1Y Price Target
$58.00Price Target Upside-22.23% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ABB Ltd Business Overview & Revenue Model
Company DescriptionABB Ltd (ABBNY) is a global technology company specializing in electrification and automation solutions for various industries. Headquartered in Zurich, Switzerland, ABB operates through four key business segments: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. The company offers a wide range of products and services, including electrical equipment, robotics, automation systems, and digital solutions designed to enhance efficiency, productivity, and sustainability across sectors such as utilities, transportation, and manufacturing.
How the Company Makes MoneyABB generates revenue through multiple streams, primarily by selling hardware, software, and services that facilitate electrification and automation. The Electrification segment provides products like circuit breakers, switches, and transformers, which are essential for power distribution. The Industrial Automation segment offers control systems and software that optimize manufacturing processes. The Motion segment focuses on drives, motors, and generators, which are critical for industrial applications. Additionally, the Robotics & Discrete Automation segment involves the sale of robotic solutions and automation technology. ABB also earns revenue from maintenance and support services, as well as software subscriptions. Significant partnerships with industries such as energy and transportation enhance its market reach and contribute to its earnings, allowing ABB to leverage technological advancements and customer needs effectively.
ABB Ltd Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant order growth, record revenue, improved operational EBITA, and increased free cash flow. However, challenges remain in specific areas, particularly in China and the Machine Automation division, and there are some transition costs related to the sale of the Robotics division.Q3-2025 Updates
Positive Updates
9% Order Growth
Orders increased by a comparable 9%, reaching $9.1 billion, with all four business areas showing improvement in orders ranging from 4% to 17%.
Record Revenue and Strong Book-to-Bill Ratio
Revenue reached an all-time high of $9.1 billion, up 9% like-for-like, with a book-to-bill ratio of 1.01x, adding to a record-high order backlog of $25.1 billion.
Operational EBITA and Margin Improvement
Operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%.
Significant Free Cash Flow
Free cash flow improved by 32% to $1.6 billion despite higher cash tax expenses and CapEx spend.
Strong Geographical Performance
The Americas was the main growth engine, with orders increasing by 19% like-for-like, and the U.S. market saw a 27% rise in orders.
Positive EPS Growth
EPS was up by 29% to $0.66.
Negative Updates
Weakness in China
AMEA region declined by 1%, hampered by weakness in China, with specific weakness noted in the residential building market.
Challenges in Machine Automation
Machine Automation division is at a breakeven level, with volumes in production not yet recovered enough to cover costs.
E-Mobility Losses
E-mobility reported a loss of $26 million, although improvement is expected moving into Q4.
Stranded Costs from Robotics Sale
There will be an impact of stranded costs reported in corporate and other until the closing of the robotics sale deal.
Company Guidance
In the third quarter of 2025, ABB reported a strong performance, achieving a 9% increase in orders, reaching $9.1 billion. The company also reported record revenues of $9.1 billion, supported by growth across all business areas, and a significant free cash flow of $1.6 billion. The operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%. ABB's earnings per share rose by 29% to $0.66. Geographically, the Americas led growth with a 19% like-for-like increase, notably with a 27% rise in the U.S. market. Europe saw a 9% increase, while the AMEA region experienced a slight decline of 1%, impacted by weakness in China. ABB also announced the decision to sell its Robotics division to SoftBank Group, shifting its focus towards strengthening its core business areas. The company's order backlog reached a record high of $25.1 billion, with a book-to-bill ratio of 1.01x, indicating strong future demand. ABB's guidance anticipates mid-single-digit revenue growth in the fourth quarter, with operational EBITA margins expected to soften due to seasonal patterns.ABB Ltd Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown |
|---|
Income Statement |
| Total Revenue |
| Gross Profit |
| EBITDA |
| Net Income |
Balance Sheet |
| Total Assets |
| Cash, Cash Equivalents and Short-Term Investments |
| Total Debt |
| Total Liabilities |
| Stockholders Equity |
Cash Flow |
| Free Cash Flow |
| Operating Cash Flow |
| Investing Cash Flow |
| Financing Cash Flow |
ABB Ltd Technical Analysis
Positive
74.58
Price Trends
72.31
Positive
70.83
Positive
63.72
Positive
Market Momentum
0.75
Negative
61.51
Neutral
92.36
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 74.58 is above the 20-day moving average (MA) of 72.66, above the 50-day MA of 72.31, and above the 200-day MA of 63.72, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 92.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABBNY.
ABB Ltd Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
79 Outperform | $5.49B | 17.51 | 18.22% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $136.26B | 30.84 | 30.71% | 0.80% | 6.26% | 16.05% | |
77 Outperform | $11.26B | 29.63 | 15.54% | 0.18% | 13.14% | -6.09% | |
77 Outperform | $23.97B | 28.28 | 25.08% | 1.19% | 0.82% | 16.05% | |
77 Outperform | $63.56B | 62.67 | 38.86% | 0.11% | 28.76% | 76.31% | |
76 Outperform | $16.59B | 28.65 | 8.57% | 0.84% | 5.31% | 5.76% |
* Sector Average
ABBNY
ABB Ltd
74.88
20.89
38.69%
AYI
Acuity Brands
371.34
69.04
22.84%
ENS
EnerSys
149.82
56.99
61.39%
HUBB
Hubbell B
455.92
31.10
7.32%
NVT
nVent Electric
103.97
35.13
51.03%
VRT
Vertiv Holdings
166.26
47.55
40.06%
ABB Ltd Corporate Events
ABB Ltd (ADR) Reports Strong Q3 Earnings Amid Challenges
Oct 25, 2025
ABB Ltd (ADR) recently held its earnings call, revealing a robust financial performance marked by significant order growth, record revenue, and improved operational EBITA. The company also reported an increase in free cash flow. However, challenges persist, particularly in China and the Machine Automation division, alongside transition costs related to the sale of its Robotics division.
ABB Ltd Reports Strong Q3 2025 Financial Results
Oct 17, 2025
ABB Ltd, a global leader in electrification and automation, has reported strong financial results for the third quarter of 2025, showcasing significant growth in orders, revenues, and margins across its business segments. The company, known for its advanced engineering and digitalization solutions, continues to drive efficiency and sustainability in various industries worldwide.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.