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Abb Ltd (Adr) (ABBNY)
:ABBNY
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ABB Ltd
(OTC:ABBNY)
Select Model
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Rating:74Outperform
Price Target:
$82.00
▲(9.95% Upside)
ABB Ltd's overall stock score reflects its strong financial performance and positive technical indicators, which are the most significant factors. The company's robust earnings call results further support the score, despite some valuation concerns and regional challenges. The strategic focus on electrification and process automation positions ABB for continued growth, although investors should be mindful of potential risks in specific segments and regions.
ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.80B
Dividend Yield1.32%
Average Volume (3M)17.61K
Price to Earnings (P/E)30.7
Beta (1Y)0.83
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. Volume33,833
30 Day Avg. Volume17,607
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 Cap1.00
Enterprise Value/Revenue4.04
Enterprise Value/Gross Profit10.40
Enterprise Value/Ebitda20.31
Forecast
1Y Price Target
$58.00Price Target Upside-22.23% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
ABB Ltd Business Overview & Revenue Model
Company DescriptionABB Ltd (ABBNY) is a global technology company headquartered in Switzerland, specializing in electrification, automation, robotics, and motion. The company operates in various sectors, including utilities, industry, transport, and infrastructure, providing innovative solutions that enhance productivity and efficiency. ABB's core products and services encompass a wide range of offerings, such as electric equipment, control systems, industrial robots, and software solutions that help businesses optimize their operations and reduce energy consumption.
How the Company Makes MoneyABB generates revenue through multiple key streams, primarily by selling products and services in its core segments: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. The Electrification segment provides electrical products and systems for utility and industrial applications, contributing significantly to ABB's revenue. The Industrial Automation segment focuses on providing advanced automation solutions, including control systems and software, which are essential for optimizing manufacturing processes. The Motion segment, which includes motors and drives, caters to various industries with energy-efficient solutions. Additionally, the Robotics & Discrete Automation segment offers robotic systems and related services to improve operational efficiency. ABB also benefits from long-term service contracts, partnerships with other technology firms, and collaborations with industry players, enhancing its market presence and providing stable revenue streams.
ABB Ltd Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
Main Street Data
Main Street DataABB 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 shows a strong financial performance with a robust Gross Profit Margin of 38.42% and a solid Net Profit Margin of 12.55%. The company's financial health is supported by efficient cost management, a moderate debt level with a Debt-to-Equity ratio of 0.64, and a strong ROE of 30.57%. Despite a slight decline in free cash flow growth, cash generation remains strong.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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.58B | 32.85B | 32.23B | 29.45B | 28.95B | 26.13B |
| Gross Profit | 13.05B | 12.27B | 11.21B | 9.71B | 9.47B | 7.88B |
| EBITDA | 6.68B | 6.13B | 5.83B | 4.34B | 6.83B | 2.47B |
| Net Income | 4.19B | 3.94B | 3.75B | 2.48B | 4.55B | 345.00M |
Balance Sheet | ||||||
| Total Assets | 42.80B | 40.36B | 40.94B | 39.15B | 40.26B | 41.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.11B | 5.64B | 5.82B | 4.88B | 5.33B | 5.39B |
| Total Debt | 9.69B | 7.81B | 8.74B | 8.55B | 6.48B | 7.12B |
| Total Liabilities | 28.20B | 25.30B | 26.79B | 25.88B | 24.30B | 25.09B |
| Stockholders Equity | 14.07B | 14.49B | 13.41B | 12.78B | 15.58B | 15.69B |
Cash Flow | ||||||
| Free Cash Flow | 3.73B | 3.83B | 3.52B | 525.00M | 2.51B | 999.00M |
| Operating Cash Flow | 4.63B | 4.67B | 4.29B | 1.29B | 3.33B | 1.69B |
| Investing Cash Flow | -2.28B | -725.00M | -1.61B | 981.00M | 2.31B | 6.76B |
| Financing Cash Flow | -2.11B | -3.33B | -2.90B | -2.39B | -4.97B | -8.18B |
ABB Ltd Technical Analysis
Positive
74.58
Price Trends
70.89
Positive
66.39
Positive
60.32
Positive
Market Momentum
0.92
Positive
60.99
Neutral
82.72
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 73.47, above the 50-day MA of 70.89, and above the 200-day MA of 60.32, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 82.72 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $4.55B | 13.86 | 19.13% | 0.81% | 3.73% | 32.29% | |
| ― | $23.08B | 28.20 | 25.34% | 1.22% | 0.95% | 13.74% | |
| ― | $16.45B | 29.08 | 7.53% | 0.77% | -4.84% | 2.33% | |
| ― | $71.14B | 70.13 | 38.86% | 0.08% | 28.76% | 76.31% | |
| ― | $11.29B | 29.39 | 15.54% | 0.18% | 13.14% | -6.09% | |
| ― | $135.80B | 30.66 | 30.71% | 1.32% | 6.26% | 16.05% | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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ABB Ltd Corporate Events
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.