AbbVie (ABBV) AI Stock Analysis

• Market Cap: $389.03B
• Dividend Yield: 2.96%
• Average Volume (3M): 4.71M
• Price to Earnings (P/E): 100.7
• Beta (1Y): 0.30
• Revenue Growth: 6.05%
• EPS Growth: -29.75%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.97
• Shares Outstanding: 1,766,558,200
• 10 Day Avg. Volume: 4,169,745
• 30 Day Avg. Volume: 4,709,126
• PEG Ratio: -6.08
• Price to Book (P/B): 94.54
• Price to Sales (P/S): 5.58
• P/FCF Ratio: 17.63
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: 27.74
• 1Y Price Target: $222.50
• Price Target Upside: 1.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 68 Neutral
• Price Target: $228.00 ▲(3.53% Upside)

AbbVie's strong earnings performance and positive technical indicators are offset by valuation concerns and financial leverage risks. The raised guidance and strategic R&D investments provide a positive outlook, but the high P/E ratio and negative equity require caution.

Positive Factors

Pipeline Advancements

Recent approvals for key drugs like EMRELIS and Rinvoq enhance AbbVie's product portfolio, supporting long-term revenue growth and market presence.

Strategic Acquisitions

Strategic acquisitions and collaborations bolster AbbVie's R&D capabilities and future growth prospects, ensuring a competitive edge in the biopharmaceutical industry.

Revenue Growth

Strong sales growth from non-HUMIRA products like Skyrizi and Rinvoq indicates successful diversification and resilience against biosimilar competition.

Negative Factors

Financial Leverage

High financial leverage and negative equity pose significant risks to AbbVie's financial stability, potentially impacting its ability to invest in growth opportunities.

Decline in HUMIRA Sales

The significant decline in HUMIRA sales due to biosimilar competition challenges AbbVie's revenue stream, necessitating successful diversification to maintain growth.

Profitability Pressure

Decreasing net profit margins reflect rising operational costs or reduced pricing power, which could hinder AbbVie's ability to sustain profitability in the long term.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie Inc. is a global biopharmaceutical company that focuses on the research, development, and commercialization of advanced therapies for complex diseases. Established in 2013 as a spinoff from Abbott Laboratories, AbbVie operates primarily in the sectors of immunology, oncology, neuroscience, and virology. Its core products include the blockbuster drug Humira, which treats autoimmune conditions, as well as other therapies like Imbruvica for cancer and Rinvoq for inflammatory diseases. The company is dedicated to addressing unmet medical needs through innovation and scientific advancement.

How the Company Makes Money

AbbVie generates revenue primarily through the sale of its pharmaceutical products, with significant contributions from its leading therapies such as Humira, Imbruvica, and Rinvoq. The company's revenue model is largely driven by direct sales to healthcare providers and hospitals, as well as through partnerships and collaborations with other pharmaceutical companies for co-development and marketing. AbbVie also earns revenue through licensing agreements for its proprietary drugs and technologies, which further diversify its income streams. Additionally, the company benefits from a strong pipeline of new therapies that are in various stages of clinical development, enhancing its future revenue potential.

AbbVie Financial Statement Overview

Summary

AbbVie demonstrates strong operational profitability and efficient cash flow generation. However, high leverage and limited revenue growth pose financial risks. The company maintains solid gross profit margins and EBIT margins, but the net profit margin is pressured by high interest expenses. Investors should monitor leverage levels and seek improvements in net income and revenue growth for a more balanced financial outlook.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.33B	56.33B	54.32B	58.05B	56.20B	45.80B
Gross Profit	43.31B	39.43B	33.90B	40.64B	38.75B	30.42B
EBITDA	14.16B	14.91B	17.17B	24.17B	23.93B	12.32B
Net Income	3.77B	4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet
Total Assets	137.18B	135.16B	134.71B	138.81B	146.53B	150.56B
Cash, Cash Equivalents and Short-Term Investments	6.47B	5.55B	12.82B	9.23B	9.83B	8.48B
Total Debt	70.48B	67.84B	60.12B	64.19B	77.58B	87.06B
Total Liabilities	137.32B	131.80B	124.31B	121.52B	131.09B	137.47B
Stockholders Equity	-183.00M	3.33B	10.36B	17.25B	15.41B	13.08B
Cash Flow
Free Cash Flow	18.24B	17.83B	22.06B	24.25B	21.99B	16.79B
Operating Cash Flow	19.28B	18.81B	22.84B	24.94B	22.78B	17.59B
Investing Cash Flow	-12.05B	-20.82B	-2.01B	-623.00M	-2.34B	-37.56B
Financing Cash Flow	-13.90B	-5.21B	-17.22B	-24.80B	-19.04B	-11.50B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 220.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 220.22 is above the 20-day moving average (MA) of 210.54, above the 50-day MA of 199.65, and above the 200-day MA of 188.46, indicating a bullish trend. The MACD of 4.59 indicates Negative momentum. The RSI at 71.26 is Negative, neither overbought nor oversold. The STOCH value of 78.13 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
JNJ	80 Outperform	$429.89B	18.80	30.21%	2.85%	4.69%	34.88%
AZN	79 Outperform	$249.88B	30.10	19.76%	1.97%	15.08%	29.15%
MRK	75 Outperform	$212.69B	12.96	35.44%	3.86%	2.00%	20.01%
PFE	73 Outperform	$141.34B	13.06	12.16%	7.16%	14.72%	―
SNY	72 Outperform	$115.53B	11.85	8.39%	4.70%	-9.32%	120.62%
ABBV	68 Neutral	$389.03B	100.72	112.90%	2.96%	6.05%	-29.75%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%