AbbVie (ABBV) AI Stock Analysis

• Market Cap: $370.09B
• Dividend Yield: 3.07%
• Average Volume (3M): 5.04M
• Price to Earnings (P/E): 99.7
• Beta (1Y): 0.30
• Revenue Growth: 6.05%
• EPS Growth: -29.75%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.97
• Shares Outstanding: 1,766,558,200
• 10 Day Avg. Volume: 4,701,054
• 30 Day Avg. Volume: 5,040,495
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 6.85
• Enterprise Value/Gross Profit: 9.69
• Enterprise Value/Ebitda: 26.50
• 1Y Price Target: $220.47
• Price Target Upside: 5.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 75 Outperform
• Price Target: $232.00 ▲(10.74% Upside)

AbbVie's strong earnings call performance and technical indicators are the most significant factors driving the score. The company's strategic R&D investments and raised guidance reflect confidence in future growth. However, high leverage and valuation concerns temper the overall score. Investors should consider the potential for sustained growth against financial risks and high valuation.

Positive Factors

Clinical Trials

Rinvoq recently reported compelling results from its Phase 3 alopecia areata trial.

Earnings Performance

AbbVie reported a big Q2 beat - with revenues at $15.4B, and EPS of $2.97, both exceeding consensus estimates.

Product Performance

Continued strong outperformance from the company’s foundational growth assets, Skyrizi and Rinvoq, contributing to a 2-3% topline beat.

Revenue Guidance

A second straight raise to revenue guidance, representing an $800mn increase to the prior guide.

Negative Factors

Product Deterioration

More rapid deterioration of Humira counterbalances the upsides in R&S and Vyalev.

Sales Decline

Sales in Aesthetics declined again sequentially due to economic challenges and low consumer sentiment.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.37B	56.33B	54.32B	58.05B	56.20B	45.80B
Gross Profit	40.55B	39.43B	33.90B	40.64B	38.75B	30.42B
EBITDA	14.82B	14.91B	17.17B	24.17B	23.93B	12.32B
Net Income	4.20B	4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet
Total Assets	136.16B	135.16B	134.71B	138.81B	146.53B	150.56B
Cash, Cash Equivalents and Short-Term Investments	5.18B	5.55B	12.82B	9.23B	9.83B	8.48B
Total Debt	69.89B	67.84B	60.12B	64.19B	77.58B	87.06B
Total Liabilities	134.70B	131.80B	124.31B	121.52B	131.09B	137.47B
Stockholders Equity	1.42B	3.33B	10.36B	17.25B	15.41B	13.08B
Cash Flow
Free Cash Flow	15.38B	17.83B	22.06B	24.25B	21.99B	16.79B
Operating Cash Flow	16.40B	18.81B	22.84B	24.94B	22.78B	17.59B
Investing Cash Flow	-11.97B	-20.82B	-2.01B	-623.00M	-2.34B	-37.56B
Financing Cash Flow	-17.29B	-5.21B	-17.22B	-24.80B	-19.04B	-11.50B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 209.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 209.5 is above the 20-day moving average (MA) of 199.72, above the 50-day MA of 192.38, and above the 200-day MA of 185.94, indicating a bullish trend. The MACD of 5.16 indicates Negative momentum. The RSI at 75.61 is Negative, neither overbought nor oversold. The STOCH value of 83.95 is Negative, 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
PFE	82 Outperform	$143.96B	13.46	12.16%	6.61%	14.72%	―
MRK	81 Outperform	$215.01B	13.27	35.44%	3.66%	2.00%	20.01%
AZN	79 Outperform	$245.82B	29.63	19.76%	1.93%	15.08%	29.15%
JNJ	78 Outperform	$428.20B	19.02	30.21%	2.80%	4.69%	34.88%
ABBV	75 Outperform	$370.09B	99.70	112.90%	3.07%	6.05%	-29.75%
AMGN	67 Neutral	$159.11B	24.18	99.14%	3.20%	13.10%	110.67%
Sector *	51 Neutral	kr6.13B	8.03	-27.68%	2.19%	50.66%	15.10%

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.