AbbVie (ABBV) AI Stock Analysis

• Market Cap: $335.21B
• Dividend Yield: 3.44%
• Average Volume (3M): 6.16M
• Price to Earnings (P/E): 80.9
• 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): 2.46
• Shares Outstanding: 1,766,403,100
• 10 Day Avg. Volume: 7,839,470
• 30 Day Avg. Volume: 6,164,215
• PEG Ratio: 9.22
• Price to Book (P/B): 16.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 4.11
• 1Y Price Target: $212.44
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 71 Outperform
• Price Target: $210.00 ▲(7.69%Upside)

AbbVie's strong earnings call performance and solid profitability drive its stock score. However, high leverage, modest revenue growth, and potential overvaluation due to a high P/E ratio temper the overall outlook. The technical indicators suggest a neutral short-term stance.

Positive Factors

Financial Performance

The company's valuation is considered attractive relative to its growth profile, suggesting potential for investment appreciation.

Growth Potential

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

Strategic Acquisitions

AbbVie announced a definitive agreement to acquire Capstan Therapeutics for up to $2.1 billion in cash, gaining access to Capstan's lead asset for innovative therapies in autoimmune diseases.

Negative Factors

Earnings Impact

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

Expense Disclosure

AbbVie disclosed a significant IPR&D and milestones expense for the second quarter of 2025.

Pricing Challenges

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

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 shows strong operational profitability with a high gross profit margin and efficient cash flow generation, yet faces challenges with high leverage and limited revenue growth. The net profit margin is pressured, indicating potential financial risks if leverage is not managed effectively.

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	44.44B	39.43B	33.90B	40.64B	38.75B	30.42B
EBITDA	16.36B	14.91B	17.31B	31.42B	28.28B	21.15B
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	67.14B	59.38B	63.27B	76.68B	86.06B
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: 195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 195 is above the 20-day moving average (MA) of 188.23, above the 50-day MA of 187.68, and above the 200-day MA of 186.19, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 78.12 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	81 Outperform	$204.32B	11.85	39.31%	3.87%	4.40%	654.93%
AZN	78 Outperform	$218.17B	27.93	19.81%	3.00%	15.48%	22.70%
JNJ	77 Outperform	$374.84B	17.32	29.45%	3.33%	-0.37%	29.21%
AMGN	73 Outperform	$159.70B	27.11	105.67%	3.21%	15.59%	56.99%
PFE	72 Outperform	$145.66B	18.57	8.62%	6.73%	13.38%	―
ABBV	71 Outperform	$335.21B	80.92	88.15%	3.44%	5.45%	-30.21%
Sector *	46 Neutral	C$198.48M	-3.49	-23.22%	2.62%	21.07%	-1.26%

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.