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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
$91.01B
Dividend Yield1.13%
Average Volume (3M)221.40K
Price to Earnings (P/E)23.6
Beta (1Y)1.02
Revenue Growth2.08%
EPS Growth14.80%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength75
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.53
Shares Outstanding1,860,614,900
10 Day Avg. Volume97,056
30 Day Avg. Volume221,398
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)12.61
Price to Cash Flow (P/CF)13.70
P/FCF Ratio15.30
Enterprise Value/Market Cap1.13
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.36
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.21Price Target Upside1.16% Upside
Rating ConsensusHold
Number of Analyst Covering4
ABB Ltd Business Overview & Revenue Model
Company DescriptionABB Ltd manufactures and sells electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboards and panel boards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Robotics & Discrete Automation segment offers industrial robots, software, autonomous mobile robotics, robotic solutions, field services, spare parts, and digital services. This segment also provides solutions based on its programmable logic controllers, industrial PCs, servo motion, transport systems, and machine vision. Its Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Process Automation segment develops and sells control technologies, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation, marine propulsion systems, and turbochargers. This segment also offers remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services. It serves aluminum, automotive, battery manufacturing, buildings and infrastructure, cement, channel partners, chemical, data centers, food and beverage, process automation, life sciences, ports, marine, mining, oil and gas, ports, power generation, printing, pulp and paper, railway, smart cities, water, and wind power industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.
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 a solid financial performance with healthy profitability, efficient cost management, and a strong equity base. Revenue growth is steady but not rapid, and the company maintains a moderate level of debt. Cash flow generation is strong, though there is a slight decline in free cash flow growth. Overall, the company is financially sound with a stable outlook.Income Statement
ABB Ltd demonstrates a strong and stable financial performance with consistent revenue growth over the past few years. The TTM Gross Profit Margin stands at 38.42%, which is quite robust for the industry. The Net Profit Margin for the TTM is 12.55%, indicating solid profitability. Revenue growth rate between the last two annual periods (2024 and 2023) is modest at 1.91%, but the consistent EBIT and EBITDA margins of 16.47% and 19.52% respectively, reflect efficient cost management and operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a Debt-to-Equity ratio of 0.64, suggesting a moderate level of leverage. The Equity Ratio is a healthy 31.82% for the TTM, implying a strong equity base relative to assets. However, the Return on Equity (ROE) is 30.57% for the TTM, indicating strong returns to shareholders, which is a positive for the financial health of the business.78
Positive
Cash Flow
Cash flow analysis reveals robust operating cash flow with an Operating Cash Flow to Net Income ratio of 1.12 in TTM, illustrating strong cash generation relative to net income. The Free Cash Flow Growth Rate is slightly negative at -1.46% from 2024 to TTM, but Free Cash Flow to Net Income ratio remains solid at 0.91, indicating effective cash management despite a slight decrease in free cash flow.80
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 | 4.34B | 6.83B | 2.47B | Net Income Common Stockholders |
| 3.94B | 3.75B | 2.48B | 4.55B | 345.00M |
| 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
Negative
51.61
Price Trends
53.07
Negative
54.19
Negative
54.76
Negative
Market Momentum
-0.27
Negative
49.93
Neutral
79.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBNY, the sentiment is Negative. The current price of 51.61 is above the 20-day moving average (MA) of 50.32, below the 50-day MA of 53.07, and below the 200-day MA of 54.76, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 79.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.49B | 18.38 | 17.86% | 0.26% | 2.78% | 11.53% | |
77 Outperform | $19.18B | 24.90 | 25.26% | 1.41% | 4.76% | 2.27% | |
76 Outperform | $91.01B | 23.59 | 31.50% | 1.13% | 2.08% | 14.80% | |
70 Outperform | $32.83B | 49.95 | 32.82% | 0.14% | 20.45% | 66.80% | |
68 Neutral | $8.98B | 27.66 | 8.73% | 1.41% | 0.78% | -41.54% | |
63 Neutral | $4.29B | 11.36 | 5.34% | 214.53% | 4.14% | -9.10% | |
59 Neutral | $4.43B | ― | -5.49% | ― | 10.53% | 90.76% |
* Industrials Sector Average
Performance Comparison
ABBNY
ABB Ltd
52.56
4.30
8.91%
AYI
Acuity Brands
243.61
-1.84
-0.75%
HUBB
Hubbell B
363.18
-5.42
-1.47%
NVT
nVent Electric
54.91
-15.35
-21.85%
BE
Bloom Energy
18.32
7.01
61.98%
VRT
Vertiv Holdings
85.38
-3.03
-3.43%
ABB Ltd Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 1.16%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start for ABB with notable achievements in order growth, margin improvements, and sustainability progress, despite challenges in the Robotics segment and the uncertainty posed by tariffs and economic conditions.Q1-2025 Updates
Positive Updates
Strong Start to the Year
ABB experienced a strong start to the year with a 5% increase in comparable orders from last year, beating expectations for operational EBITDA margin across all business areas, and achieving a free cash flow of $652 million, positioning them well for the year ahead.
Significant Margin Improvements
Gross margin improved by 280 basis points to 41.7% and operational EBITDA margin reached 20.2% with a notable one-time contribution of 170 basis points.
Electrification Record Orders
The Electrification segment achieved a new all-time high with $4.4 billion in orders, marking a 2% increase on a comparable basis.
Sustainability Achievements
ABB is close to reaching its 2030 sustainability targets with a 78% reduction in CO2 emissions from the 2019 baseline and helped customers avoid 66 megatons of emissions in 2024.
Robust Regional Performance
Growth was seen across all regions: Americas up 11%, Asia, Middle East, and Africa up 4%, with China seeing a positive order growth of 13% after 10 quarters of decline.
Negative Updates
Challenges in Robotics and Discrete Automation
The Robotics and Discrete Automation segment saw a decline in comparable revenues by 11% year on year, with a decrease in operational EBITDA margin by 330 basis points to 9.9%.
Impact of Tariffs and Economic Uncertainty
The uncertainty from U.S. tariffs and economic conditions posed challenges, with potential impacts on customer decision-making and the overall market environment.
Lower Large Order Bookings in Motion
Motion segment faced a decline in order intake due to lower large order bookings, particularly in the traction division.
Company Guidance
During the first quarter of fiscal year 2025, ABB reported a 5% increase in comparable orders, with a notable operational EBITDA margin of 20.2%, enhanced by a 170 basis point boost from a one-time event. The company's free cash flow reached $652 million, setting a positive trajectory to surpass the $3.9 billion achieved in the previous year. In terms of sustainability, ABB reduced its CO2 emissions by 78% from the 2019 base level and helped customers avoid 66 megatons of emissions in 2024. The revenue chart showed $7.9 billion in sales with 3% comparable growth, although slightly below expectations due to slower order conversion. Regionally, the Americas led with an 11% increase, while China saw a 13% growth in orders after a prolonged decline. ABB's gross margin improved by 280 basis points to 41.7%, and its Return on Capital Employed (ROCE) reached 23%, improving by 250 basis points. The company plans to spin off its Robotics division as a separately listed entity to enhance value creation, targeting a listing by the second quarter of 2026. The outlook for 2025 remains unchanged, with expectations for mid-single-digit comparable revenue growth and improved operational EBITDA margins, assuming stable global economic conditions.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.