Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $236.77B
• Dividend Yield: 1.71%
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.34
• Revenue Growth: 5.85%
• EPS Growth: 152.28%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.26
• Shares Outstanding: 1,740,459,000
• 10 Day Avg. Volume: 6,039,981
• 30 Day Avg. Volume: 5,511,615
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 10.75
• Enterprise Value/Ebitda: 21.06
• 1Y Price Target: $145.71
• Price Target Upside: 7.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 79 Outperform
• Price Target: $152.00 ▲(11.73% Upside)

Abbott Laboratories' strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust growth in Medical Devices and strategic focus on innovation support its outlook. While technical indicators are positive, valuation remains fair, and challenges in diagnostics present some risks.

Positive Factors

Medical Devices Growth

The strong growth in the Medical Devices segment, particularly in diabetes care and cardiac management, underscores Abbott's competitive advantage and innovation in high-demand healthcare areas, supporting long-term revenue expansion.

Profitability and Margins

Sustained high profit margins indicate effective cost management and pricing power, contributing to financial stability and the ability to reinvest in growth opportunities.

Cash Flow Strength

Strong cash flow generation enhances Abbott's financial flexibility, enabling strategic investments, debt reduction, and shareholder returns, supporting long-term business health.

Negative Factors

Diagnostics Segment Challenges

Declining sales in the Diagnostics segment, exacerbated by reduced COVID testing demand and challenges in China, pose risks to revenue stability and growth in this critical business area.

China Market Headwinds

The procurement challenges in China affect Abbott's ability to maintain market share and profitability in a key growth region, potentially impacting long-term strategic objectives.

COVID Testing Revenue Decline

The significant reduction in COVID testing sales impacts Abbott's revenue base, necessitating a shift in focus to other growth areas to offset this decline and sustain overall growth.

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 multiple key streams across its various sectors. The Medical Devices segment, which includes products such as cardiovascular devices, diabetes care products, and neuromodulation devices, represents a significant portion of the company's revenue. The Diagnostics segment, providing a range of laboratory and point-of-care testing solutions, also contributes substantially to earnings, particularly through partnerships with healthcare providers and laboratories. The Nutritional Products sector, which offers infant formulas and nutritional supplements, benefits from strong market demand and brand recognition. Additionally, the Established Pharmaceuticals segment focuses on generic and branded medications, contributing to steady revenue growth. Abbott's revenue model is bolstered by its commitment to research and development, allowing it to introduce innovative products and maintain competitive advantage. Strategic partnerships with healthcare organizations, hospitals, and distributors further enhance its market reach and revenue potential.

Abbott Laboratories Financial Statement Overview

Summary

Abbott Laboratories exhibits strong financial health with consistent profitability, efficient operations, and solid financial management. The company maintains a stable growth trajectory in revenue and cash flow generation, with manageable leverage and effective equity utilization.

Income Statement

Abbott Laboratories shows strong profitability with a consistent gross profit margin and net profit margin. The TTM revenue growth rate is moderate, indicating steady performance. EBIT and EBITDA margins are robust, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet demonstrates solid equity with a favorable equity ratio. The debt-to-equity ratio indicates manageable leverage, while the return on equity is strong, suggesting effective use of equity financing.

Cash Flow

The cash flow statements show healthy operating cash flow compared to net income, indicating strong cash generation. Free cash flow growth is positive, although not rapidly increasing, it reflects stability in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.11B	41.95B	40.11B	43.65B	43.08B	34.61B
Gross Profit	22.76B	21.32B	20.04B	22.32B	23.21B	17.38B
EBITDA	11.61B	10.83B	10.61B	11.89B	12.16B	9.00B
Net Income	13.98B	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet
Total Assets	84.00B	81.41B	73.21B	74.44B	75.20B	72.55B
Cash, Cash Equivalents and Short-Term Investments	7.28B	7.97B	7.28B	10.17B	10.25B	7.15B
Total Debt	13.44B	15.28B	15.87B	17.95B	19.25B	19.89B
Total Liabilities	33.17B	33.51B	34.39B	37.53B	39.17B	39.55B
Stockholders Equity	50.56B	47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow
Free Cash Flow	6.78B	6.35B	5.06B	7.80B	8.65B	5.72B
Operating Cash Flow	9.04B	8.56B	7.26B	9.58B	10.53B	7.90B
Investing Cash Flow	-2.51B	-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
Financing Cash Flow	-6.59B	-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 136.04
• 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 ABT, the sentiment is Positive. The current price of 136.04 is above the 20-day moving average (MA) of 132.48, above the 50-day MA of 130.42, and above the 200-day MA of 127.59, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 92.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	121.96B	26.25	9.73%	2.96%	4.98%	22.08%
ABT	79 Outperform	$236.77B	17.01	31.01%	1.71%	5.85%	152.28%
SYK	75 Outperform	144.06B	49.86	13.77%	0.88%	11.36%	-15.66%
BSX	75 Outperform	144.96B	58.23	11.16%	―	21.45%	36.19%
DXCM	71 Outperform	26.45B	47.22	22.21%	―	9.30%	-14.95%
EW	69 Neutral	43.69B	50.80	39.30%	―	-5.23%	-39.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%