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Abb Ltd (Adr) (ABBNY)
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ABB Ltd (ABBNY) AI Stock Analysis

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ABBNY

ABB Ltd

(OTC:ABBNY)

Rating:77Outperform
Price Target:
$75.00
▲(11.69%Upside)
ABB Ltd scores strongly due to its robust financial performance, solid earnings call highlights, and significant order and revenue growth. The technical analysis shows bullish trends, though overbought signals suggest caution. Valuation metrics indicate the stock might be fully valued, which slightly dampens the overall score.

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

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 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:Jul 17, 2025
(Q2-2025)
|
% Change Since: 13.91%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
ABB's earnings call highlighted strong order intake, revenue growth, and sustainability recognition, signaling a robust performance in several segments. However, challenges in specific business areas like Machine Automation, and weaknesses in certain market segments, such as automotive and residential buildings, present areas for improvement.
Q2-2025 Updates
Positive Updates
Record High Order Intake
ABB achieved a record high order intake of $9.8 billion, marking a 14% increase on a comparable basis. This includes a significant $600 million order in Process Automation.
Recognition for Sustainability
ABB was listed by TIME Magazine as one of the top 15 most sustainable companies in the world, highlighting the success of the ABB Way operating model.
Launch of New Robotics and Electrification Products
The company introduced three new robot families and an upgraded air circuit breaker, Emax 3, enhancing their market scope and technological edge.
Strong Performance in Electrification and Process Automation
Electrification and Process Automation segments achieved all-time high orders and revenues, with Electrification orders at $4.5 billion and Process Automation orders up 40%.
Positive Revenue Growth Across Regions
Revenue growth was observed in all regions, with the Americas up 28%, Asia, Middle East, and Africa up 6%, and Europe up 6%.
Improved Operational EBITA
Operational EBITA reached a new high of $1.7 billion, with a margin of 19.2%, driven by Electrification and Process Automation.
Negative Updates
Challenges in Machine Automation and E-mobility
The Machine Automation and e-mobility businesses faced challenges, with margin pressures and order intake issues.
Weakness in Automotive and Pulp & Paper Segments
The automotive segment experienced challenges, and customer activity in pulp and paper remained subdued.
Residential Building Market Weakness
The residential building market, particularly in China, continued to be weak, affecting Electrification orders.
Decline in Robotics & Discrete Automation Revenues
Revenue for the Robotics & Discrete Automation segment decreased by 5% year-on-year, with operational EBITA margin down 200 basis points.
Company Guidance
In the second quarter of 2025, ABB reported several key metrics and achievements. The company achieved a record-high order intake of $9.8 billion, representing a 14% increase on a comparable basis, primarily driven by a substantial $600 million order in Process Automation. Revenue reached an all-time high of $8.9 billion, marking a 6% increase, supported by growth across three of the four business areas. Operational EBITA rose by 9% to $1.7 billion, with a margin of 19.2%, slightly surpassing expectations. Electrification saw orders and revenues at all-time highs, with orders at $4.5 billion and revenues at $4.3 billion, and an operational EBITA margin reaching 23.9%. Motion's orders exceeded $2 billion, with a 3% increase, while Process Automation recorded a 40% order increase. Robotics & Discrete Automation saw a 4% order improvement, although revenues declined by 5%. ABB maintained a strong financial position with a book-to-bill ratio of 1.1 and free cash flow of $845 million, while the company's sustainability efforts were recognized by TIME Magazine, listing ABB among the top 15 most sustainable companies globally.

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
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.85B32.23B29.45B28.95B26.13B
Gross Profit12.27B11.21B9.71B9.47B7.88B
EBITDA6.13B5.83B4.34B6.83B2.47B
Net Income3.94B3.75B2.48B4.55B345.00M
Balance Sheet
Total Assets40.36B40.94B39.15B40.26B41.09B
Cash, Cash Equivalents and Short-Term Investments5.64B5.82B4.88B5.33B5.39B
Total Debt7.81B8.74B8.55B6.48B7.12B
Total Liabilities25.30B26.79B25.88B24.30B25.09B
Stockholders Equity14.49B13.41B12.78B15.58B15.69B
Cash Flow
Free Cash Flow3.83B3.52B525.00M2.51B999.00M
Operating Cash Flow4.67B4.29B1.29B3.33B1.69B
Investing Cash Flow-725.00M-1.61B981.00M2.31B6.76B
Financing Cash Flow-3.33B-2.90B-2.39B-4.97B-8.18B

ABB Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price67.15
Price Trends
50DMA
59.17
Positive
100DMA
56.01
Positive
200DMA
55.80
Positive
Market Momentum
MACD
2.29
Negative
RSI
71.40
Negative
STOCH
98.30
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 67.15 is above the 20-day moving average (MA) of 61.71, above the 50-day MA of 59.17, and above the 200-day MA of 55.80, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 71.40 is Negative, neither overbought nor oversold. The STOCH value of 98.30 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$12.69B21.887.63%1.02%-5.12%1.69%
78
Outperform
$23.35B29.4225.78%1.18%1.97%10.22%
77
Outperform
$122.45B29.1330.55%1.47%3.73%10.97%
75
Outperform
$49.62B75.4832.82%0.10%20.45%66.80%
71
Outperform
¥269.20B13.848.47%2.89%6.33%13.01%
70
Outperform
$7.68B0.86%20.95%
69
Neutral
$9.11B23.8416.60%0.22%9.16%4.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ABBNY
ABB Ltd
67.15
13.18
24.42%
AYI
Acuity Brands
301.90
54.15
21.86%
HUBB
Hubbell B
442.54
80.15
22.12%
NVT
nVent Electric
78.53
8.80
12.62%
BE
Bloom Energy
34.34
19.83
136.66%
VRT
Vertiv Holdings
137.47
60.45
78.49%
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: Jul 22, 2025