AbbVie (ABBV) AI Stock Analysis

• Market Cap: $323.71B
• Dividend Yield: 3.48%
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): 78.1
• Beta (1Y): 0.32
• Revenue Growth: 5.45%
• EPS Growth: -30.21%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.46
• Shares Outstanding: 1,766,403,100
• 10 Day Avg. Volume: 7,533,382
• 30 Day Avg. Volume: 7,755,642
• PEG Ratio: -5.10
• Price to Book (P/B): 108.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $213.69
• Price Target Upside: 15.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 67 Neutral
• Price Target: $197.00 ▲(6.07%Upside)

AbbVie's strong earnings call performance and strategic investments in growth areas drive a positive outlook despite high financial leverage and valuation concerns. Technical indicators are currently neutral to bearish, suggesting cautious market sentiment.

Positive Factors

Drug Approval

Emrelis (Teliso-V) granted accelerated approval by the FDA for the treatment of locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) with high c-Met protein overexpression.

Financial Guidance

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

Revenue Growth

Continued strong performance of Skyrizi and Rinvoq drives growth in revenue and earnings per share.

Negative Factors

Pipeline Risk

A comparatively lighter late-stage pipeline and in therapeutic areas that may not scale to the current I&I franchise add risk to AbbVie’s relative safety positioning.

Policy Risk

A higher perceived policy risk than peers from PBM reform/MFN discounting adds risk to AbbVie’s relative safety positioning.

Product Performance

There is a concern about the lower performance of Humira and Aesthetics impacting results.

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 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 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: Neutral
• Last Price: 185.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 185.72 is below the 20-day moving average (MA) of 187.35, below the 50-day MA of 189.45, and below the 200-day MA of 186.45, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABBV.

AbbVie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZN	77 Outperform	$219.66B	28.08	19.81%	2.16%	15.48%	22.70%
MRK	76 Outperform	$194.81B	11.29	39.31%	4.07%	4.40%	654.93%
JNJ	76 Outperform	$368.73B	17.04	29.45%	3.24%	-0.37%	29.21%
AMGN	70 Outperform	$146.07B	24.80	105.67%	3.36%	15.59%	56.99%
ABBV	67 Neutral	$323.71B	78.14	88.15%	3.48%	5.45%	-30.21%
PFE	66 Neutral	$132.58B	16.90	8.62%	7.25%	13.38%	―
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%

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.