AbbVie (ABBV) AI Stock Analysis

• Market Cap: $331.06B
• Dividend Yield: 3.25%
• Average Volume (3M): 8.95M
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.33
• Revenue Growth: 5.45%
• EPS Growth: N/A
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 60
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.46
• Shares Outstanding: 1,768,978,300
• 10 Day Avg. Volume: 7,543,362
• 30 Day Avg. Volume: 8,953,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $215.60
• Price Target Upside: 15.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

AbbVie's stock score reflects strong earnings performance and cash flow management, though concerns about financial leverage and equity stability persist. The technical indicators suggest stability, while high valuation levels raise caution. Positive earnings guidance and leadership changes support a favorable outlook despite competitive challenges.

Positive Factors

Financial Performance

AbbVie reported a solid beat-and-raise quarter with three of its four key business segments beating consensus estimates.

Product Performance

Key immunology products, Skyrizi and Rinvoq, continue to perform well, exceeding sales expectations.

Revenue and Earnings

AbbVie raised its revenue and earnings per share guidance, indicating a strong outlook.

Negative Factors

Product Segment Weakness

The aesthetics segment remains weak, which could impact overall performance.

Revenue Decline

Humira revenue came in below estimates and consensus, with a significant decline due to biosimilars gaining greater coverage.

Tariffs and Pricing

Potential pharmaceutical tariffs present a risk to the stock, similar to other companies in the sector.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie Inc. is a global, research-driven biopharmaceutical company that focuses on developing and delivering innovative medicines and therapies. Established in 2013 as a spin-off from Abbott Laboratories, AbbVie operates in the healthcare sector, primarily focusing on immunology, oncology, virology, and neuroscience. The company is known for its robust portfolio of products, including its flagship drug Humira, along with other significant treatments like Imbruvica and Venclexta.

How the Company Makes Money

AbbVie generates revenue primarily through the sale of its pharmaceutical products. Humira, a treatment for autoimmune diseases, has historically been a significant driver of revenue, although the company is actively diversifying its portfolio to mitigate reliance on a single product. AbbVie's revenue streams include prescription drug sales in therapeutic areas such as immunology, oncology, and neuroscience, where it holds a competitive position with products like Skyrizi and Rinvoq. Additionally, AbbVie benefits from strategic partnerships and acquisitions, such as its acquisition of Allergan, which expanded its product offerings in areas like aesthetics. The company's revenue is also supported by ongoing research and development efforts, which aim to bring new therapies to market and extend the lifecycle of existing products.

AbbVie Financial Statement Overview

Summary

AbbVie demonstrates strong profitability and cash flow generation, though high leverage and declining equity raise financial stability concerns. The missing revenue data for 2024 significantly impacts income analysis, highlighting the need for caution in future periods. While cash flow supports operations well, balance sheet risks due to high debt necessitate careful management.

Income Statement

AbbVie's revenue has shown fluctuations over the years, with a decline in 2023 followed by a significant drop in 2024 due to missing revenue data. The gross profit margin and net profit margin indicate robust profitability in 2023, but the lack of data for 2024 limits the analysis. Overall, strong margins reflect stability, though recent revenue volatility poses concerns.

Balance Sheet

AbbVie maintains a high debt-to-equity ratio, reflecting significant leverage, which poses potential risks, especially with declining equity. The equity ratio has decreased, indicating reduced financial stability. Return on equity is not calculable for 2024 due to missing data. Overall, the balance sheet shows high leverage with declining equity, raising concerns about financial resilience.

Cash Flow

AbbVie's cash flow remains strong, with robust free cash flow and healthy operating cash flow to net income ratios. Although there was a decline in operating cash flow in 2023, it remains positive, indicating good cash management. Free cash flow has consistently supported net income, providing a good cushion for financial operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.33B	54.32B	58.05B	56.20B	45.80B
	Gross Profit
39.43B	33.90B	40.64B	38.75B	30.42B
	EBIT
9.14B	12.76B	18.12B	17.92B	11.36B
	EBITDA
14.91B	17.31B	31.42B	28.28B	21.15B
	Net Income Common Stockholders
4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.55B	12.82B	9.23B	9.83B	8.48B
	Total Assets
135.16B	134.71B	138.81B	146.53B	150.56B
	Total Debt
67.14B	59.38B	63.27B	76.68B	86.06B
	Net Debt
61.62B	46.57B	54.07B	66.94B	77.61B
	Total Liabilities
131.80B	124.31B	121.52B	131.09B	137.47B
	Stockholders Equity
3.33B	10.36B	17.25B	15.41B	13.08B
Cash Flow		Free Cash Flow
18.81B	22.06B	24.25B	21.99B	16.79B
	Operating Cash Flow
18.81B	22.84B	24.94B	22.78B	17.59B
	Investing Cash Flow
-20.82B	-2.01B	-623.00M	-2.34B	-37.56B
	Financing Cash Flow
-5.21B	-17.22B	-24.80B	-19.04B	-11.50B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Negative. The current price of 187.15 is above the 20-day moving average (MA) of 182.03, below the 50-day MA of 196.10, and above the 200-day MA of 185.96, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 78.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABBV.

AbbVie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZN	78 Outperform	$221.49B	28.75	19.81%	2.11%	15.48%	22.70%
JNJ	78 Outperform	$372.25B	17.23	29.45%	3.20%	-0.37%	29.21%
MRK	76 Outperform	$198.47B	12.06	39.31%	3.81%	4.40%	654.93%
ABBV	70 Outperform	$331.06B	83.41	61.94%	3.25%	5.45%	―
AMGN	70 Outperform	$145.42B	25.56	105.67%	3.26%	15.59%	56.99%
PFE	66 Neutral	$130.08B	17.30	8.62%	7.08%	13.38%	―
Sector *	52 Neutral	$5.24B	3.76	-41.88%	2.85%	17.01%	0.78%

AbbVie Corporate Events

AbbVie Appoints Robert A. Michael as Chairman

On February 14, 2025, AbbVie announced the appointment of CEO Robert A. Michael as chairman of the board, effective July 1, 2025, succeeding Richard A. Gonzalez, who will retire from the board. This leadership change marks a new phase for AbbVie, with expectations for continued growth and innovation under Michael’s guidance, leveraging his extensive experience and successful track record within the company.