Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $215.82B
• Dividend Yield: 1.8%
• Average Volume (3M): 7.22M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.39
• Revenue Growth: 4.59%
• EPS Growth: 134.50%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Devices
• EPS (TTM): 7.66
• Shares Outstanding: 1,734,323,400
• 10 Day Avg. Volume: 6,836,226
• 30 Day Avg. Volume: 7,221,903
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.22
• Price to Cash Flow (P/CF): 19.10
• P/FCF Ratio: 19.10
• 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: $140.21
• Price Target Upside: 13.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Abbott Laboratories demonstrates a strong overall position with a solid financial foundation, positive technical indicators, and promising earnings guidance. Key strengths include robust revenue growth and operational efficiency. However, potential risks include increased leverage and tax rates, alongside overbought technical signals.

Positive Factors

Clinical Outcomes

TriClip significantly reduced heart failure hospitalizations in severe TR, a clinical outcome benefit not seen at the one-year mark.

Financial Performance

Medical Devices was a standout performer, delivering 14.0% organic growth and sales of $5.05B vs the Street's $4.97B expectation.

Growth Expectations

ABT projects organic sales growth of 7.5-8.5% for 2025, which is higher than the Street's forecast of ~7%, reflecting strong future growth expectations.

Negative Factors

Geographical Performance

Weakness in Diagnostics was linked to value-based purchasing pricing/share shift headwinds in China.

Litigation Issues

The overturned state case is viewed as incrementally negative for Abbott Laboratories as easing concerns around NEC litigation had previously helped drive the stock up.

Abbott Laboratories Business Overview & Revenue Model

Company Description

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

How the Company Makes Money

Abbott Laboratories generates revenue through the sale of its diverse product portfolio across its four main business segments. The Established Pharmaceutical Products segment focuses on branded generic pharmaceuticals, primarily in emerging markets, contributing significantly to the company's revenue. The Diagnostic Products segment offers a range of testing systems and assays, including core laboratory, molecular, and point-of-care testing solutions, generating revenue through both product sales and service contracts. Abbott's Nutritional Products segment includes pediatric and adult nutrition brands like Similac and Ensure, which are distributed globally, providing a steady revenue stream. The Medical Devices segment encompasses a wide array of products for cardiovascular, diabetes care, neuromodulation, and other medical device markets, generating revenue from both the sale of devices and associated consumables. Additionally, strategic partnerships, research and development initiatives, and a focus on innovation help to drive Abbott's growth and profitability in the competitive healthcare industry.

Abbott Laboratories Financial Statement Overview

Summary

Abbott Laboratories shows strong revenue growth and stable financials with solid profit margins. Despite fluctuations in operational efficiency and increased leverage, cash flow generation remains robust, supporting liquidity and flexibility.

Income Statement

Abbott Laboratories has demonstrated strong revenue growth over the years with a notable increase from $31.9 billion in 2019 to $41.9 billion in 2024. The gross profit margin has remained robust, reflecting efficient cost management. However, EBIT and EBITDA margins have seen some fluctuations, indicating variability in operational efficiency. The net profit margin shows a substantial improvement, particularly in 2024, driven by increased net income.

Balance Sheet

The company maintains a stable equity position with stockholders' equity rising consistently. The debt-to-equity ratio shows moderate leverage, although total debt has increased over the years, which could pose a risk if not managed properly. The equity ratio indicates a healthy level of assets financed by equity, providing a cushion against liabilities.

Cash Flow

Operating cash flow has shown positive growth, supporting strong free cash flow generation. The free cash flow growth rate is commendable, although there are occasional fluctuations. The operating cash flow to net income ratio suggests effective conversion of profits into cash flow, enhancing financial flexibility. However, the free cash flow to net income ratio indicates room for improvement in cash flow efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
41.95B	40.11B	43.65B	43.08B	34.61B
	Gross Profit
23.24B	22.13B	24.51B	24.54B	19.61B
	EBIT
6.83B	6.48B	8.36B	8.43B	5.36B
	EBITDA
10.83B	10.61B	12.38B	12.74B	8.79B
	Net Income Common Stockholders
13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.97B	7.28B	10.17B	10.25B	7.15B
	Total Assets
81.41B	73.21B	74.44B	75.20B	72.55B
	Total Debt
15.02B	15.87B	17.72B	19.01B	19.65B
	Net Debt
7.41B	8.98B	7.83B	9.21B	12.81B
	Total Liabilities
33.51B	34.39B	37.53B	39.17B	39.55B
	Stockholders Equity
47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow		Free Cash Flow
6.35B	5.06B	7.80B	8.65B	5.72B
	Operating Cash Flow
8.56B	7.26B	9.58B	10.53B	7.90B
	Investing Cash Flow
-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
	Financing Cash Flow
-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.95
• 50DMA: Negative
• 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 ABT, the sentiment is Negative. The current price of 123.95 is below the 20-day moving average (MA) of 128.21, below the 50-day MA of 130.95, and above the 200-day MA of 116.59, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABT	79 Outperform	$215.82B	16.29	30.95%	1.80%	4.59%	134.50%
BSX	78 Outperform	$132.67B	73.38	9.03%	―	17.60%	16.84%
SYK	78 Outperform	$131.99B	44.55	15.26%	0.95%	10.23%	-5.74%
MDT	77 Outperform	$106.30B	25.19	8.42%	3.38%	2.72%	4.48%
EW	68 Neutral	$40.63B	28.17	17.17%	―	-4.67%	6.23%
DXCM	61 Neutral	$23.38B	43.26	27.63%	―	11.34%	4.24%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%