ABB Ltd (ABBNY) AI Stock Analysis

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ABB Ltd

(OTC:ABBNY)

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Outperform 77 (OpenAI - 4o)

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.

Positive Factors

Revenue Growth

Record revenue growth indicates strong demand across all business areas, supporting long-term expansion and market presence.

Cash Flow Generation

Strong cash flow generation enhances liquidity, allowing ABB to fund operations, invest in growth, and maintain financial stability.

Order Backlog

A robust order backlog ensures future revenue streams, reflecting sustained demand and operational resilience.

Negative Factors

Weakness in China

Weak performance in China, a key market, could hinder growth prospects and affect overall regional performance.

Challenges in Machine Automation

Ongoing challenges in the Machine Automation division may impact profitability and require strategic adjustments.

Stranded Costs from Robotics Sale

Stranded costs from the Robotics sale could affect short-term financials, requiring efficient cost management.

ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$129.18B

Dividend Yield0.82%

Average Volume (3M)11.28K

Price to Earnings (P/E)29.3

Beta (1Y)0.88

Revenue Growth6.26%

EPS Growth16.05%

CountryUS

Employees110,970

SectorIndustrials

Sector Strength72

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 Cap1.05

Enterprise Value/Revenue3.94

Enterprise Value/Gross Profit9.99

Enterprise Value/Ebitda19.11

Forecast

1Y Price Target

$58.00

Price 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 Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsABB Ltd's revenue growth is robust across all regions, with the Americas leading at a 28% increase, driven by strong performance in Process Automation. Europe and Asia, Middle East, and Africa also show healthy growth at 6%. The earnings call highlights a record order intake and strong operational EBITA, despite challenges in Machine Automation and the automotive sector. This suggests ABB's strategic focus on electrification and process automation is effectively countering sector-specific headwinds, positioning the company for continued growth and stability.

Data provided by:

The Fly

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

ABB Ltd demonstrates strong financial health with consistent revenue growth, robust profitability margins, and efficient operations. The company maintains a stable balance sheet with moderate leverage and impressive return on equity, alongside strong cash flow generation.

Income Statement

Very Positive

ABB Ltd shows strong financial performance with consistent revenue growth, evidenced by a 2.68% increase in TTM revenue. The company maintains healthy profitability margins, with a gross profit margin of 39.42% and a net profit margin of 12.89% in the TTM period. EBIT and EBITDA margins are also robust at 18.20% and 20.60%, respectively, indicating efficient operations and cost management.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.63, suggesting moderate leverage. The return on equity is impressive at 31.17%, highlighting effective use of shareholder funds. The equity ratio stands at 34.30%, indicating a solid equity base relative to total assets.

Cash Flow

Positive

Cash flow analysis reveals a positive trajectory with a 10.84% growth in free cash flow. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.82, demonstrating strong cash generation relative to earnings. This indicates good liquidity and the ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.47B	32.85B	32.23B	29.45B	28.95B	26.13B
Gross Profit	13.59B	12.27B	11.21B	9.71B	9.47B	7.88B
EBITDA	7.10B	6.13B	5.83B	4.34B	6.83B	2.00B
Net Income	4.45B	3.94B	3.75B	2.48B	4.55B	345.00M
Balance Sheet
Total Assets	43.65B	40.36B	40.94B	39.15B	40.26B	41.09B
Cash, Cash Equivalents and Short-Term Investments	5.83B	5.64B	5.82B	4.88B	5.33B	5.39B
Total Debt	9.39B	7.81B	8.74B	8.55B	6.48B	7.12B
Total Liabilities	28.13B	25.30B	26.79B	25.88B	24.30B	25.09B
Stockholders Equity	14.97B	14.49B	13.41B	12.78B	15.58B	15.69B
Cash Flow
Free Cash Flow	4.13B	3.83B	3.52B	525.00M	2.51B	999.00M
Operating Cash Flow	5.06B	4.67B	4.29B	1.29B	3.33B	1.69B
Investing Cash Flow	-2.17B	-725.00M	-1.61B	981.00M	2.31B	6.76B
Financing Cash Flow	-2.20B	-3.33B	-2.90B	-2.39B	-4.97B	-8.18B

ABB Ltd Technical Analysis

Technical Analysis Sentiment

Positive

Last Price74.58

Price Trends

50DMA

72.20

Positive

100DMA

70.08

Positive

200DMA

62.74

Positive

Market Momentum

MACD

0.29

Negative

RSI

56.36

Neutral

STOCH

92.29

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 70.72, above the 50-day MA of 72.20, and above the 200-day MA of 62.74, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 92.29 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABBNY	77 Outperform	$129.18B	29.29	30.71%	0.82%	6.26%	16.05%
AYI	77 Outperform	$11.40B	29.70	15.54%	0.18%	13.14%	-6.09%
ENS	77 Outperform	$5.43B	17.20	18.22%	0.67%	6.17%	20.86%
HUBB	77 Outperform	$23.46B	27.38	25.08%	1.23%	0.82%	16.05%
VRT	77 Outperform	$68.20B	67.24	38.86%	0.10%	28.76%	76.31%
NVT	76 Outperform	$17.28B	29.51	8.57%	0.73%	5.31%	5.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

ABBNY

ABB Ltd

73.31

15.26

26.28%

AYI

Acuity Brands

372.38

49.63

15.38%

ENS

EnerSys

150.88

56.42

59.73%

HUBB

Hubbell B

448.18

-2.83

-0.63%

NVT

nVent Electric

108.87

34.38

46.15%

VRT

Vertiv Holdings

181.82

56.16

44.69%

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.Date of analysis: Nov 04, 2025