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ABB Ltd (ABBNY)
OTHER OTC:ABBNY
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ABB Ltd
(OTC:ABBNY)
Rating:79Outperform
Price Target:
$76.00
â–²(6.49% Upside)
Positive Factors
Strong Order Intake
The record order intake reflects robust demand for ABB's offerings, indicating strong market positioning and potential for sustained revenue growth.
Sustainability Recognition
Recognition for sustainability enhances ABB's brand value and aligns with increasing global emphasis on sustainable practices, potentially attracting eco-conscious clients.
Launch of New Products
The launch of new products strengthens ABB's technological edge and market scope, supporting future growth and competitive advantage in automation and electrification.
Negative Factors
Challenges in Machine Automation
Persistent challenges in Machine Automation could hinder profitability and growth in this segment, affecting overall business performance if not addressed.
Weakness in Automotive Segment
Weakness in the automotive segment may impact ABB's revenue from this market, necessitating strategic adjustments to mitigate potential long-term impacts.
Decline in Robotics Revenue
A decline in Robotics revenue suggests potential issues in market demand or competition, which could affect ABB's growth prospects in this key segment.
ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.47B
Dividend Yield1.38%
Average Volume (3M)18.59K
Price to Earnings (P/E)31.3
Beta (1Y)0.88
Revenue Growth3.73%
EPS Growth10.97%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength70
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.63
Shares Outstanding1,843,899,200
10 Day Avg. Volume16,570
30 Day Avg. Volume18,590
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 Cap0.87
Enterprise Value/Revenue3.39
Enterprise Value/Gross Profit8.73
Enterprise Value/Ebitda17.06
Forecast
1Y Price Target
$55.00Price Target Upside-22.94% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 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 Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call highlights ABB's strong performance with record-high order intake, recognition for sustainability, and successful product launches. However, challenges remain in specific segments such as Machine Automation and the automotive industry. The positive aspects significantly outweigh the lowlights, indicating a robust performance overall.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, with significant contributions from Process Automation and positive growth across all business areas.
Recognition by TIME Magazine
ABB was recognized by TIME Magazine as one of the top 15 most sustainable companies worldwide, highlighting the success of their ABB Way operating model focused on sustainability.
Launch of New Robot Families
The introduction of three new robot families broadens the market scope for ABB Robotics, supporting long-term growth and profitability, particularly in the Chinese market.
Emax 3 Air Circuit Breaker Upgrade
ABB launched an upgraded version of its Emax 3 air circuit breaker with advanced cybersecurity technology, enhancing energy security and resilience for critical infrastructure.
Improved Operational EBITA
ABB reported an all-time high operational EBITA of $1.7 billion, with a 9% increase and a margin improvement to 19.2%, driven by Electrification and Process Automation.
Strong Geographic Performance
Revenue growth was observed in all regions, with the Americas showing a 28% increase, Asia, Middle East, and Africa improving by 6%, and Europe up by 6% on a comparable basis.
Negative Updates
Challenges in Machine Automation
ABB faced challenges in its Machine Automation and e-mobility business areas, with margin pressure and headwinds affecting performance.
Subdued Automotive Segment
The automotive segment remains challenging, impacting robotics orders, with subdued customer activity in pulp and paper and chemical segments.
Weakness in Residential Building Segment
The residential building segment continues to be weak, particularly in China, affecting the overall performance of the Electrification business area.
Lower Volumes in Machine Automation
Machine Automation reported significantly lower volumes, resulting in a small loss and impacting the overall margin of the Robotics & Discrete Automation business.
Company Guidance
In the second quarter of 2025, ABB achieved a record high order intake of $9.8 billion, marking a 14% increase on a comparable basis. This growth was significantly driven by a large order of approximately $600 million in Process Automation. Overall, orders increased by 7% even when excluding this large order, with all four business areas experiencing order growth between 3% and 9%. The company also reported record revenues of $8.9 billion, up 6% from the previous year, supported by strong short- and long-cycle business performance. Operational EBITA reached an all-time high of $1.7 billion, reflecting a 9% increase and a margin of 19.2%. This was largely attributed to Electrification and Process Automation, despite some margin pressures in the Machine Automation division. The Americas region led growth with a 28% increase, while Europe and Asia, Middle East, and Africa grew by 6%. Despite challenges in the automotive sector and subdued activity in pulp and paper, ABB's broader markets remained strong, particularly in utilities and data centers. The company maintained its guidance for 2025, anticipating at least mid-single-digit growth and stable operational EBITA margins for the third quarter.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.80
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
71.37
Price Trends
65.90
Positive
61.18
Positive
57.78
Positive
Market Momentum
1.55
Negative
69.31
Neutral
99.98
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 71.37 is above the 20-day moving average (MA) of 68.28, above the 50-day MA of 65.90, and above the 200-day MA of 57.78, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 69.31 is Neutral, neither overbought nor oversold. The STOCH value of 99.98 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.00B | 12.19 | 19.13% | 0.91% | 3.73% | 32.29% | |
80 Outperform | $15.25B | 26.97 | 7.53% | 0.82% | -4.84% | 2.33% | |
79 Outperform | $130.47B | 31.30 | 30.55% | 1.38% | 3.73% | 10.97% | |
78 Outperform | $23.28B | 28.45 | 25.34% | 1.21% | 0.95% | 13.74% | |
75 Outperform | $10.44B | 26.85 | 16.60% | 0.19% | 9.16% | 4.09% | |
74 Outperform | $51.49B | 64.42 | 34.84% | 0.11% | 26.31% | 62.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
ABBNY
ABB Ltd
71.37
15.57
27.90%
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340.71
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28.91%
ENS
EnerSys
107.70
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7.56%
HUBB
Hubbell B
438.11
32.03
7.89%
NVT
nVent Electric
96.35
30.56
46.45%
VRT
Vertiv Holdings
138.26
51.09
58.61%
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.