AbbVie (ABBV) AI Stock Analysis

• Market Cap: $406.46B
• Dividend Yield: 2.87%
• Average Volume (3M): 5.72M
• Price to Earnings (P/E): 173.5
• Beta (1Y): 0.24
• Revenue Growth: 7.40%
• EPS Growth: -53.78%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.86
• Shares Outstanding: 1,767,384,600
• 10 Day Avg. Volume: 6,117,461
• 30 Day Avg. Volume: 5,720,786
• 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: 1.16
• Enterprise Value/Revenue: 7.94
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 37.21
• 1Y Price Target: $252.21
• Price Target Upside: 9.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 10.64
• Revenue Forecast (FY): $60.94B

• Rating: 66 Neutral
• Price Target: $241.00 ▲(4.79% Upside)

AbbVie's overall stock score is driven by strong earnings call performance and strategic corporate events, which are offset by financial stability concerns and high valuation metrics. The company's robust pipeline and strategic investments provide a positive long-term outlook, despite current profitability and leverage challenges.

Positive Factors

Robust Pipeline

A strong R&D pipeline with significant investment indicates potential for future product launches, driving long-term revenue growth and market leadership.

Market Exclusivity

Extending market exclusivity for RINVOQ until 2037 allows AbbVie to maintain market share and profitability, providing a competitive edge in the immunology sector.

Immunology Growth

Strong growth in key immunology products like Skyrizi and Rinvoq underscores AbbVie's ability to capitalize on high-demand therapeutic areas, supporting sustained revenue expansion.

Negative Factors

High Leverage

High leverage and negative equity pose financial stability risks, potentially limiting AbbVie's ability to invest in growth opportunities and manage economic downturns.

Humira Sales Decline

The significant decline in Humira sales due to biosimilar competition highlights vulnerability in AbbVie's revenue stream, necessitating successful new product launches to offset losses.

Profitability Pressure

Decreasing profit margins indicate operational challenges and cost pressures, which could impact AbbVie's ability to sustain profitability and invest in future growth initiatives.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases; SKYRIZI to treat moderate to severe plaque psoriasis in adults; RINVOQ, a JAK inhibitor for the treatment of moderate to severe active rheumatoid arthritis in adult patients; IMBRUVICA to treat adult patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL), and VENCLEXTA, a BCL-2 inhibitor used to treat adults with CLL or SLL; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides CREON, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid used in the treatment of hypothyroidism; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; Lupron for the palliative treatment of advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; and Botox therapeutic. In addition, the company offers ORILISSA, a nonpeptide small molecule gonadotropin-releasing hormone antagonist for women with moderate to severe endometriosis pain; Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson's disease; Lumigan/Ganfort, a bimatoprost ophthalmic solution for the reduction of elevated intraocular pressure (IOP) in patients with open angle glaucoma (OAG) or ocular hypertension; Ubrelvy to treat migraine with or without aura in adults; Alphagan/ Combigan, an alpha-adrenergic receptor agonist for the reduction of IOP in patients with OAG; and Restasis, a calcineurin inhibitor immunosuppressant to increase tear production, as well as other eye care products. AbbVie Inc. has a research collaboration with Dragonfly Therapeutics, Inc. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

How the Company Makes Money

AbbVie generates revenue primarily through the sale of its pharmaceutical products, with a significant portion coming from its flagship drug, Humira, which has been one of the best-selling drugs globally. The company's revenue model is largely driven by direct sales to healthcare providers, hospitals, and pharmacies. Additionally, AbbVie engages in collaborations and partnerships with other pharmaceutical companies and research institutions to co-develop drugs, which can provide additional revenue streams through licensing fees and shared profits. The company also invests heavily in research and development to expand its product pipeline, targeting areas with high unmet medical needs, which can lead to new revenue opportunities as successful products are brought to market.

AbbVie Financial Statement Overview

Summary

AbbVie exhibits strong revenue growth and cash flow generation, but faces challenges with profitability and a highly leveraged balance sheet. The negative equity raises concerns about financial stability, despite the company's ability to generate cash efficiently. Continued focus on improving profitability and reducing leverage will be crucial for future financial health.

Income Statement

AbbVie shows a stable revenue growth trajectory with a 2.26% increase in TTM. However, the net profit margin has decreased to 4.01% from 7.59% in the previous year, indicating pressure on profitability. The gross profit margin remains strong at 76.21%, reflecting efficient cost management. EBIT and EBITDA margins have declined, suggesting potential operational challenges.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio of -26.02 in TTM, due to negative stockholders' equity, indicating high leverage and potential financial risk. Return on equity has improved to 4.99%, but the negative equity ratio poses significant concerns about financial stability.

Cash Flow

AbbVie demonstrates strong cash flow management with a 12.78% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy at 0.53, and free cash flow to net income is nearly 1, indicating robust cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.64B	56.33B	54.32B	58.05B	56.20B	45.80B
Gross Profit	45.45B	39.43B	33.90B	40.64B	38.75B	30.42B
EBITDA	12.72B	14.91B	17.17B	24.17B	23.93B	12.32B
Net Income	2.39B	4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet
Total Assets	133.90B	135.16B	134.71B	138.81B	146.53B	150.56B
Cash, Cash Equivalents and Short-Term Investments	5.67B	5.55B	12.82B	9.23B	9.83B	8.48B
Total Debt	68.74B	67.84B	60.12B	64.19B	77.58B	87.06B
Total Liabilities	136.50B	131.80B	124.31B	121.52B	131.09B	137.47B
Stockholders Equity	-2.64B	3.33B	10.36B	17.25B	15.41B	13.08B
Cash Flow
Free Cash Flow	20.57B	17.83B	22.06B	24.25B	21.99B	16.79B
Operating Cash Flow	20.86B	18.81B	22.84B	24.94B	22.78B	17.59B
Investing Cash Flow	-7.05B	-20.82B	-2.01B	-623.00M	-2.34B	-37.56B
Financing Cash Flow	-15.42B	-5.21B	-17.22B	-24.80B	-19.04B	-11.50B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 229.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 229.98 is above the 20-day moving average (MA) of 226.12, above the 50-day MA of 226.69, and above the 200-day MA of 203.86, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.92 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
MRK	80 Outperform	$265.03B	14.13	39.51%	3.12%	1.59%	58.02%
AZN	79 Outperform	$286.51B	30.61	21.73%	1.70%	12.95%	44.28%
JNJ	78 Outperform	$500.24B	20.04	33.62%	2.50%	5.08%	71.07%
SNY	75 Outperform	$116.39B	12.05	8.39%	4.58%	-9.32%	120.62%
PFE	74 Outperform	$142.65B	14.62	10.59%	6.65%	4.44%	128.96%
ABBV	66 Neutral	$406.46B	173.53	138.53%	2.87%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

AbbVie Corporate Events

AbbVie Settles to Delay RINVOQ Generics Until 2037

On September 11, 2025, AbbVie announced a settlement with all generic manufacturers regarding the generic versions of its drug RINVOQ, delaying generic entry in the U.S. until April 2037, assuming pediatric exclusivity is granted. This settlement potentially strengthens AbbVie’s market position by extending its exclusivity period, impacting stakeholders by delaying generic competition and maintaining market share for RINVOQ.