AbbVie (ABBV) AI Stock Analysis

• Market Cap: $337.77B
• Dividend Yield: 3.42%
• Average Volume (3M): 5.96M
• Price to Earnings (P/E): 81.5
• Beta (1Y): 0.33
• Revenue Growth: 5.45%
• EPS Growth: -30.21%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.97
• Shares Outstanding: 1,766,403,100
• 10 Day Avg. Volume: 4,786,152
• 30 Day Avg. Volume: 5,955,792
• PEG Ratio: -38.74
• Price to Book (P/B): 237.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.89
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 22.56
• Enterprise Value/Ebitda: 10.43
• 1Y Price Target: $212.46
• Price Target Upside: 12.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 68 Neutral
• Price Target: $208.00 ▲(9.87%Upside)

AbbVie's overall score is driven by strong financial performance and positive earnings call results, particularly in its Ex-Humira platform. However, high leverage and an elevated P/E ratio pose risks. Technical indicators provide a neutral outlook, suggesting the stock is reasonably positioned but requires careful monitoring of debt levels and valuation.

Positive Factors

Product Pipeline

Skyrizi and Rinvoq continue to trend ahead of expectations, indicating ongoing growth potential for AbbVie.

Strategic Partnerships

AbbVie has entered an exclusive licensing agreement with IGI Therapeutics for a novel trispecific antibody, ISB 2001, which could potentially offer superior efficacy and safety.

Negative Factors

Competition

Humira downside on misunderstood pricing in US, reflecting biosimilar competition erosion and class erosion.

Financial Performance

Analyst reduces the estimated earnings per share for the second quarter of 2025 due to an IPR&D charge.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie Inc. is a global biopharmaceutical company engaged in the discovery, development, manufacturing, and sale of a broad range of pharmaceutical products. The company focuses primarily on key therapeutic areas, including immunology, oncology, virology, and neuroscience. AbbVie is known for its flagship drug, Humira, which has been a leading treatment in immunology. The company's pipeline includes a range of new products and formulations intended to address complex and serious health conditions.

How the Company Makes Money

AbbVie generates revenue through the sale of its pharmaceutical products, with a significant portion coming from its best-selling drug, Humira, used in the treatment of rheumatoid arthritis and other autoimmune diseases. The company also earns income from other leading products such as Imbruvica, for oncology, and Mavyret, for hepatitis C treatment. AbbVie's revenue model is heavily reliant on its ability to innovate and bring new drugs to market, often through significant investments in research and development. Additionally, strategic acquisitions and partnerships enhance its portfolio and market reach, contributing to its earnings. The company also benefits from patent protections that provide exclusive marketing rights for its products, allowing it to maintain pricing power in the market.

AbbVie Financial Statement Overview

Summary

AbbVie shows strong operational profitability with a high gross profit margin, yet faces challenges due to high leverage and modest revenue growth. The balance sheet indicates significant financial risk from high debt levels, while cash flow reflects robust generation but declining free cash flow growth.

Income Statement

AbbVie's income statement reflects strong gross profit margins and a consistent ability to generate EBIT from revenues, indicating operational efficiency. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 77.5%, and the EBIT margin is 28.3%, showcasing solid profitability. However, the net profit margin is relatively low at 7.3%, suggesting pressure on net income possibly due to high interest expenses or other non-operating costs. Revenue growth is modest, indicating stable but not rapid growth.

Balance Sheet

The balance sheet reveals significant leverage with a debt-to-equity ratio of 49.2 in the TTM, indicating a high level of debt relative to equity, which could pose financial risk. Return on Equity (ROE) is weak at 295.4%, driven by low equity levels rather than high net income. The equity ratio is low at 1.0%, suggesting limited equity financing and high financial leverage.

Cash Flow

AbbVie has a strong cash flow position with stable free cash flow generation. The operating cash flow to net income ratio is 3.91 in the TTM, indicating robust cash generation relative to net income. However, the free cash flow growth rate is negative at -13.7%, signifying a decline in free cash flow compared to the previous period, which could impact long-term cash sustainability.

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
EBITDA	14.91B	17.17B	24.17B	23.93B	12.32B
Net Income	4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet
Total Assets	135.16B	134.71B	138.81B	146.53B	150.56B
Cash, Cash Equivalents and Short-Term Investments	5.55B	12.82B	9.23B	9.83B	8.48B
Total Debt	67.84B	60.12B	64.19B	77.58B	87.06B
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	17.83B	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: Positive
• Last Price: 189.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Positive. The current price of 189.31 is above the 20-day moving average (MA) of 189.21, above the 50-day MA of 186.68, and above the 200-day MA of 184.72, indicating a bullish trend. The MACD of 0.88 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABBV.

AbbVie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	79 Outperform	$207.49B	12.74	39.31%	3.91%	2.01%	―
AZN	79 Outperform	$223.49B	28.65	19.76%	2.01%	15.17%	29.15%
JNJ	78 Outperform	$400.31B	17.78	30.21%	3.00%	4.69%	34.88%
AMGN	73 Outperform	$162.01B	27.50	105.67%	3.07%	15.59%	56.99%
ABBV	68 Neutral	$337.77B	81.54	88.15%	3.42%	5.45%	-30.21%
PFE	66 Neutral	$138.15B	17.61	8.62%	7.18%	13.38%	―
Sector *	52 Neutral	$7.47B	0.53	-62.70%	2.38%	14.92%	0.82%

AbbVie Corporate Events

AbbVie Expands Board, Appoints New Independent Director

On May 9, 2025, AbbVie Inc. expanded its Board of Directors from fourteen to fifteen members, appointing Thomas J. Falk as an independent director and member of the Audit Committee. The Board also announced a future reduction to thirteen directors with the retirement of Richard A. Gonzalez and Glenn F. Tilton on July 1, 2025. Additionally, Robert A. Michael was elected to succeed Mr. Gonzalez as Chairman, with a revised compensation package reflecting his new role. During the 2025 Annual Meeting of Stockholders, several key votes were held, including the election of Class I directors and the ratification of Ernst & Young LLP as the independent accounting firm. However, proposals to amend the certificate of incorporation for voting changes were not approved.

The most recent analyst rating on (ABBV) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on AbbVie stock, see the ABBV Stock Forecast page.