Education
About Us
Working with TipRanks
Follow Us
ABB Ltd (ABBNY)
OTHER OTC:ABBNY
Top Page
ABB Ltd
(OTC:ABBNY)
Rating:79Outperform
Price Target:―
ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$108.19B
Dividend Yield1.67%
Average Volume (3M)4.79K
Price to Earnings (P/E)26.5
Beta (1Y)0.93
Revenue Growth2.08%
EPS Growth14.80%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength86
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.60
Shares Outstanding1,843,899,200
10 Day Avg. Volume14,382
30 Day Avg. Volume4,794
Financial Highlights & Ratios
PEG Ratio4.90
Price to Book (P/B)7.77
Price to Sales (P/S)0.00
P/FCF Ratio27.95
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit8.67
Enterprise Value/Ebitda4.53
Forecast
1Y Price Target
$50.00Price Target Upside-15.70% Downside
Rating ConsensusHold
Number of Analyst Covering1
ABB Ltd Business Overview & Revenue Model
Company DescriptionABB Ltd (ABBNY) is a leading global technology company that drives transformation in society and industry to achieve a more productive, sustainable future. The company, headquartered in Zurich, Switzerland, operates mainly in four business areas: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. ABB provides a wide range of products and solutions, including electrical equipment, automation solutions, robotics, and digital technologies, serving various industries such as utilities, transport, and infrastructure.
How the Company Makes MoneyABB Ltd generates revenue through its diverse business segments that offer a broad array of products and services. In the Electrification segment, ABB provides electrical equipment and solutions for electric vehicles, smart buildings, and renewable energy projects, earning money through the sale and servicing of these products. The Industrial Automation segment focuses on delivering automation solutions for process and hybrid industries, where revenue comes from the sale of automation systems and related services. The Motion segment involves the provision of motors and drives for industrial applications, contributing to revenue through both product sales and after-market services. Lastly, the Robotics & Discrete Automation segment offers robotics solutions and factory automation systems, with earnings derived from the sale of robots, software, and maintenance services. Significant factors impacting ABB's revenue include its strategic partnerships, such as collaborations with technology companies to enhance digital offerings, and its focus on sustainability, which aligns with global energy efficiency trends.
ABB Ltd Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 16.25%|
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.ABB Ltd Financial Statement Overview
Summary
ABB Ltd demonstrates a strong financial performance with consistent revenue growth, robust profit margins, and efficient cost management. The company maintains a healthy balance sheet with moderate leverage and strong equity. Cash flow generation is solid, despite a slight decline in free cash flow growth, indicating effective overall financial management.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.91B | 32.85B | 32.23B | 29.45B | 28.95B | 26.13B |
| Gross Profit | 12.65B | 12.27B | 11.21B | 9.71B | 9.47B | 7.88B |
| EBITDA | 6.43B | 6.13B | 5.83B | 4.34B | 6.83B | 2.47B |
| Net Income | 4.13B | 3.94B | 3.75B | 2.48B | 4.55B | 345.00M |
Balance Sheet | ||||||
| Total Assets | 42.46B | 40.36B | 40.94B | 39.15B | 40.26B | 41.09B |
| Cash, Cash Equivalents and Short-Term Investments | 6.36B | 5.64B | 5.82B | 4.88B | 5.33B | 5.39B |
| Total Debt | 8.71B | 7.81B | 8.74B | 8.55B | 6.48B | 7.12B |
| Total Liabilities | 28.35B | 25.30B | 26.79B | 25.88B | 24.30B | 25.09B |
| Stockholders Equity | 13.52B | 14.49B | 13.41B | 12.78B | 15.58B | 15.69B |
Cash Flow | ||||||
| Free Cash Flow | 3.77B | 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 | -1.34B | -725.00M | -1.61B | 981.00M | 2.31B | 6.76B |
| Financing Cash Flow | -2.88B | -3.33B | -2.90B | -2.39B | -4.97B | -8.18B |
ABB Ltd Technical Analysis
Positive
59.31
Price Trends
56.46
Positive
54.94
Positive
55.37
Positive
Market Momentum
0.73
Negative
60.48
Neutral
84.24
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 59.31 is above the 20-day moving average (MA) of 58.25, above the 50-day MA of 56.46, and above the 200-day MA of 55.37, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.24 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.09B | 20.97 | 7.63% | 1.09% | -5.12% | 1.69% | |
79 Outperform | $108.19B | 26.53 | 31.50% | 1.67% | 2.08% | 14.80% | |
79 Outperform | $22.16B | 28.08 | 25.78% | 1.27% | 1.97% | 10.22% | |
75 Outperform | $46.70B | 71.05 | 32.82% | 0.12% | 20.45% | 66.80% | |
73 Outperform | $5.24B | ― | 0.86% | ― | 20.95% | ― | |
69 Neutral | $9.38B | 24.11 | 16.60% | 0.22% | 9.16% | 4.09% | |
59 Neutral | AU$1.63B | 9.50 | 11.29% | 3.71% | 6.59% | 5.93% |
* Industrials Sector Average
Performance Comparison
ABBNY
ABB Ltd
59.31
4.58
8.37%
AYI
Acuity Brands
306.02
67.44
28.27%
HUBB
Hubbell B
415.12
47.14
12.81%
NVT
nVent Electric
73.44
-1.57
-2.09%
BE
Bloom Energy
22.56
10.40
85.53%
VRT
Vertiv Holdings
124.33
32.67
35.64%
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.