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ABB Ltd (CH:ABBN)
:ABBN

ABB Ltd (ABBN) AI Stock Analysis

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ABB Ltd

(LSE:ABBN)

Rating:77Outperform
Price Target:
CHF53.00
▲(15.57%Upside)
ABB Ltd's strong financial performance and positive earnings call sentiment are major strengths, indicating robust profitability and growth potential. Technical analysis shows mixed momentum, and valuation suggests potential overvaluation. The absence of notable corporate events outside of earnings doesn't impact the score.
Positive Factors
Sector growth
ABB outperformed the sector on organic growth due to its exposure to Medium Voltage and Process Automation.
Stock performance
ABB Ltd. has shown strong performance recently, which is a key factor in its stock assessment.
Negative Factors
Margin potential
There is limited upside to margins in the medium term and estimates are broadly in line with consensus.
Stock rating
The recommendation for ABB Ltd. has been downgraded to neutral following its strong performance.
Valuation
ABB's valuation no longer screens as attractive in the Multis Toolkit screen.

ABB Ltd (ABBN) vs. iShares MSCI Switzerland ETF (EWL)

ABB Ltd Business Overview & Revenue Model

Company DescriptionABB Ltd engages in manufacture and sale of electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboard and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Robotics & Discrete Automation segment offers industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services. This segment also offers solutions based on its programmable logic controllers, industrial PCs, servo motion, transport system, and machine vision. Its Motion segment manufactures and sells drives, motors, generators, traction converters, and mechanical power transmission products that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Process Automation segment provides process and discrete control technologies, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation, marine propulsion systems, and large turbochargers. In addition, this segment offers remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services. It serves aluminum, automotive, buildings and infrastructure, cement, channel partners, chemical, data centers, food and beverage, process automation, life sciences, marine and ports, metals, mining, oil and gas, ports, power generation, printing, pulp and paper, railway, smart cities, water, and wind power industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.
How the Company Makes MoneyABB Ltd generates revenue through a diverse business model structured around its four main business divisions: Electrification, Robotics & Discrete Automation, Motion, and Process Automation. The Electrification division offers a wide range of products and systems for electrical distribution, providing solutions for homes, buildings, data centers, and industrial facilities. The Robotics & Discrete Automation division supplies robotics, machine automation, and digital services, catering to industries such as automotive, electronics, and logistics. The Motion division delivers motors, generators, drives, and services that enhance energy efficiency and performance in industrial applications. Process Automation offers integrated solutions for process and hybrid industries, focusing on sectors like oil and gas, mining, and chemicals. ABB leverages strategic partnerships and collaborations to expand its market reach and technological capabilities, while its global service network and digital platforms further contribute to its revenue by offering maintenance, optimization, and lifecycle services to its clients.

ABB Ltd Earnings Call Summary

Earnings Call Date:Apr 17, 2025
(Q1-2025)
|
% Change Since: 10.24%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong order growth and sustainability achievements, but challenges remain in robotics and discrete automation. The company is well-positioned in electrification, but faces delayed revenue conversion and order declines in specific areas.
Q1-2025 Updates
Positive Updates
Strong Start to the Year
Increased comparable orders by 5% from last year and beat expectations for operational EBITDA margin across all business areas.
Free Cash Flow and Sustainability Progress
Generated $652 million in free cash flow, positioning the company well for improving annual cash flow beyond last year's $3.9 billion. Achieved a 78% reduction in CO2 emissions from the 2019 base level.
Electrification Achievements
Electrification achieved a new record with $4.4 billion in orders, 6% comparable revenue growth, and operational EBITDA margin of 23.2%.
Process Automation Order Growth
Orders in process automation increased 23% year-on-year with a backlog of $8.1 billion.
Negative Updates
Robotics and Discrete Automation Challenges
Robotics and discrete automation saw a decline in revenue by 11% year-on-year, and operational EBITDA margin decreased by 330 basis points year-on-year.
Revenue Conversion Delays
Revenue of $7.9 billion and 3% comparable growth was below expectations due to slower conversion of backlog and recent orders.
Order Decline in Rail and Large Orders
Orders in rail dropped and large order contributions were lower, impacting the overall order intake.
Company Guidance
In the recent earnings call for ABB's first quarter of fiscal year 2025, the company provided optimistic guidance based on several key metrics. ABB reported a robust start to the year with a 5% increase in comparable orders, driven by strong market demand and mid-single-digit growth in short cycle orders. The operational EBITDA margin exceeded expectations in all business areas, reaching 20.2% with a one-time boost of 170 basis points. Free cash flow was reported at $652 million, positioning the company to surpass last year's $3.9 billion annual free cash flow. The electrification segment achieved a record $4.4 billion in orders, while process automation orders grew 23% year-on-year. Despite a slight shortfall in revenue growth expectations, ABB anticipates mid-single-digit comparable revenue growth for the year, with an improved operational EBITDA margin, contingent on stable global economic conditions. Additionally, ABB announced its plan to spin off its Robotics division as a separately listed company by 2026, aiming to enhance value creation.

ABB Ltd Financial Statement Overview

Summary
ABB Ltd demonstrates strong financial performance, with robust profitability and consistent revenue growth. The balance sheet indicates balanced leverage and improved ROE, while cash flow metrics show effective cash conversion practices.
Income Statement
85
Very Positive
ABB Ltd displays strong profitability with a consistent Gross Profit Margin around 38-39% in recent years and a Net Profit Margin improving from 8.4% in 2022 to 12.6% in TTM (Trailing-Twelve-Months). The Revenue Growth Rate is positive at 1.98% in the current TTM period, indicating steady growth. However, EBIT and EBITDA margins, although healthy, show minor fluctuations due to varying operational efficiencies.
Balance Sheet
78
Positive
The company maintains a moderate Debt-to-Equity Ratio of 0.64 in the TTM period, indicating a balanced approach to leveraging. The Return on Equity (ROE) has improved from 19.4% in 2022 to 30.6% in TTM, reflecting enhanced profitability. The Equity Ratio is stable around 31.8%, suggesting a robust financial position with a respectable proportion of equity financing.
Cash Flow
82
Very Positive
ABB Ltd demonstrates strong cash flow management with a Free Cash Flow to Net Income Ratio of 91.3% in TTM, indicating efficient conversion of earnings to cash. The Operating Cash Flow to Net Income Ratio is slightly lower, showing room for improvement in operational cash generation. Free Cash Flow growth has been positive, reflecting robust cash management practices.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.91B32.85B32.23B29.45B28.95B26.13B
Gross Profit12.65B12.27B11.21B9.71B9.47B7.88B
EBITDA6.43B6.13B5.83B4.34B6.83B2.47B
Net Income4.13B3.94B3.75B2.48B4.55B345.00M
Balance Sheet
Total Assets42.46B40.36B40.94B39.15B40.26B41.09B
Cash, Cash Equivalents and Short-Term Investments6.36B5.64B5.82B4.88B5.33B5.39B
Total Debt8.71B7.81B8.74B8.55B6.48B7.12B
Total Liabilities28.35B25.30B26.79B25.88B24.30B25.09B
Stockholders Equity13.52B14.49B13.41B12.78B15.58B15.69B
Cash Flow
Free Cash Flow3.77B3.83B3.52B525.00M2.51B999.00M
Operating Cash Flow4.63B4.67B4.29B1.29B3.33B1.69B
Investing Cash Flow-1.34B-725.00M-1.61B981.00M2.31B6.76B
Financing Cash Flow-2.88B-3.33B-2.90B-2.39B-4.97B-8.18B

ABB Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price45.86
Price Trends
50DMA
45.59
Positive
100DMA
46.68
Negative
200DMA
47.70
Negative
Market Momentum
MACD
0.06
Positive
RSI
42.53
Neutral
STOCH
5.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ABBN, the sentiment is Negative. The current price of 45.86 is below the 20-day moving average (MA) of 47.13, above the 50-day MA of 45.59, and below the 200-day MA of 47.70, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 5.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:ABBN.

ABB Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
CHF83.78B23.3331.34%1.94%2.15%15.03%
75
Outperform
CHF3.91B17.40
2.34%-11.73%-35.55%
58
Neutral
$1.34B4.06-2.93%11.64%3.38%-51.94%
$2.06B16.11-6.00%3.28%
$1.13B82.325.60%7.31%
$5.93B20.0322.45%2.93%
58
Neutral
CHF1.91B49.95
0.85%-9.78%-69.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:ABBN
ABB Ltd
45.86
-2.98
-6.11%
CH:BUCN
Bucher Industries AG
382.00
29.71
8.43%
LGYRF
Landis+Gyr Group AG
71.45
-9.64
-11.89%
LMHDF
LEM Holding SA
683.74
-912.67
-57.17%
SULZF
Sulzer AG
176.82
42.62
31.76%
CH:SRAIL
Stadler Rail AG
19.14
-6.27
-24.68%

ABB Ltd Corporate Events

ABB Ltd Announces Progress in Share Buyback Program
Jun 26, 2025

ABB Ltd has repurchased 675,778 shares from June 19 to June 25, 2025, as part of its ongoing share buyback program initiated in February 2025. This move is in compliance with relevant financial regulations and is executed by a bank independently of ABB. The total shares repurchased under this program since February 2025 amount to 11,511,487, reflecting ABB’s strategic efforts to manage its capital structure and enhance shareholder value.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Recognized Among World’s Most Sustainable Companies
Jun 25, 2025

ABB has been recognized as one of the world’s most sustainable companies, securing 14th place in TIME Magazine’s ‘World’s Most Sustainable Companies 2025’ ranking. This achievement highlights ABB’s commitment to sustainability, transparency, and accountability, as well as its efforts to promote a low-carbon society. The company has made significant progress in reducing its greenhouse gas emissions and has received accolades for its environmental transparency and performance, including a top rating from the Carbon Disclosure Project and MSCI ESG Ratings.

The most recent analyst rating on (CH:ABBN) stock is a Buy with a CHF56.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Announces Share Buyback Completion
Jun 19, 2025

ABB Ltd announced the repurchase of 607,599 shares as part of its ongoing share buyback program, which began on February 7, 2025. The buyback, conducted on the SIX Swiss Exchange, is in line with Swiss and EU financial regulations. This initiative reflects ABB’s strategic efforts to enhance shareholder value and optimize capital structure, potentially strengthening its market position and investor confidence.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Continues Strategic Share Buyback Program
Jun 12, 2025

ABB Ltd announced the repurchase of 439,843 shares between June 5 and June 11, 2025, as part of its ongoing share buyback program. This initiative, compliant with Swiss and EU financial regulations, reflects ABB’s strategic focus on optimizing shareholder value. The buyback, executed independently by a bank on the SIX Swiss Exchange, is part of a larger program that has seen over 10 million shares repurchased since February 2025, underscoring ABB’s commitment to enhancing shareholder returns.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Announces Progress in Share Buyback Program
Jun 5, 2025

ABB Ltd announced the repurchase of 483,908 shares as part of its ongoing share buyback program, which is conducted in compliance with Swiss and EU financial regulations. This initiative, which began in February 2025, has resulted in a total of 9,788,267 shares being bought back, reflecting ABB’s strategic financial management and commitment to enhancing shareholder value.

The most recent analyst rating on (CH:ABBN) stock is a Buy with a CHF56.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Reduces Share Count to Optimize Capital Structure
May 30, 2025

ABB Ltd has reduced its number of shares and votes by cancelling 16,715,684 shares repurchased under its 2024 share buyback program, decreasing the total number of issued shares to 1,843,899,204. This strategic move is part of ABB’s capital management efforts to optimize its share structure, potentially impacting shareholder value and market positioning.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Completes Latest Phase of Share Buyback Program
May 29, 2025

ABB Ltd has repurchased 586,688 shares between May 22 and May 28, 2025, as part of its ongoing share buyback program. This initiative is in line with Swiss and EU financial regulations and aims to enhance shareholder value. The total number of shares bought back since the program’s inception in February 2025 is 9,304,359. The buyback is executed independently by a bank on the SIX Swiss Exchange, adhering to predefined parameters, and reflects ABB’s commitment to optimizing capital allocation and returning value to shareholders.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Continues Strategic Share Buyback Program
May 22, 2025

ABB Ltd has repurchased 681,533 shares between May 15 and May 21, 2025, as part of its ongoing share buyback program initiated in February 2025. The program, compliant with Swiss and EU regulations, aims to optimize capital structure and enhance shareholder value, with a total of 8,717,671 shares bought back so far, reflecting ABB’s strategic financial management and commitment to its stakeholders.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Executes Share Buyback to Enhance Shareholder Value
May 15, 2025

ABB Ltd announced the repurchase of 547,509 shares from May 8 to May 14, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move, executed on the SIX Swiss Exchange, aims to optimize the company’s capital structure and enhance shareholder value, reflecting ABB’s commitment to its financial strategy and market positioning.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF49.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Executes Share Buyback Program in May 2025
May 8, 2025

ABB Ltd has repurchased 486,631 shares between May 1 and May 7, 2025, as part of its ongoing share buyback program announced earlier in February. This initiative is conducted under regulatory frameworks to ensure compliance and is part of a broader strategy to manage its capital structure, potentially enhancing shareholder value and market confidence.

ABB Ltd Executes Significant Share Buyback Program
May 1, 2025

ABB Ltd announced the repurchase of 730,001 shares between April 24 and April 30, 2025, as part of its ongoing share buyback program. This initiative, conducted under specific regulatory frameworks, reflects ABB’s strategic focus on optimizing shareholder value. The total number of shares repurchased since the program’s inception in February 2025 amounts to 7,001,998, indicating a significant commitment to this financial strategy.

ABB Ltd Completes Significant Share Buyback
Apr 24, 2025

ABB Ltd announced the repurchase of 642,817 shares from April 17 to April 23, 2025, as part of its ongoing share buyback program. This initiative aligns with regulatory standards and is executed independently by a bank on the SIX Swiss Exchange. The total shares repurchased since February 10, 2025, amount to 6,271,997, reflecting ABB’s commitment to enhancing shareholder value.

ABB Ltd Continues Share Buyback Program with Recent Repurchases
Apr 17, 2025

ABB Ltd has repurchased 758,530 shares from April 10 to April 16, 2025, as part of its ongoing share buyback program initiated in February 2025. This buyback is conducted under Swiss and EU regulations, with the bank executing trades independently within set parameters. The total shares repurchased since February 2025 amount to 5,629,180, reflecting ABB’s commitment to enhancing shareholder value.

ABB Reports Strong Q1 2025 Results and Plans Robotics Spin-Off
Apr 17, 2025

ABB Ltd reported a strong start to 2025 with a 3% increase in orders and a 1% rise in revenues for the first quarter, despite a challenging global business environment. The company achieved a 20.2% operational EBITA margin and announced plans to spin off its Robotics division to optimize value creation. ABB is also investing $120 million to expand its U.S. manufacturing sites, reflecting its commitment to local production and the growing demand for electrification technologies. The company continues to focus on sustainability, nearing its 2030 CO2e emissions reduction target and maintaining a low Lost Time Injury Frequency Rate.

ABB Ltd Reports Strong Q1 2025 and Strategic Portfolio Moves
Apr 17, 2025

ABB Ltd reported a strong start to 2025 with a 3% increase in order intake and a 1% rise in sales, despite uncertainties in the global business environment. The company is optimizing its portfolio by preparing for the spin-off of its Robotics division, which is expected to enhance value creation and market positioning. ABB is also investing in expanding local manufacturing in the USA to meet growing demand for electrification technologies, while maintaining a focus on sustainability and reducing CO2 emissions.

ABB to Spin Off Robotics Division for Enhanced Focus and Growth
Apr 17, 2025

ABB Ltd announced its plan to spin off its Robotics Division as an independently listed company by the second quarter of 2026, aiming to enhance value creation and operational focus. This strategic move is expected to strengthen both ABB and the new entity by allowing more focused governance and capital allocation, thus improving customer value and growth potential. The Robotics Division, known for its intelligent automation solutions, will continue to build on its strong market position with a solid capital structure and regional production centers, contributing significantly to ABB’s overall sales and operational efficiency.

ABB Ltd Executes Share Buyback Program to Enhance Shareholder Value
Apr 10, 2025

ABB Ltd announced that it repurchased a total of 731,774 shares between April 3 and April 9, 2025, as part of its ongoing share buyback program. This initiative, in compliance with Swiss and EU financial regulations, aims to optimize the company’s capital structure and potentially enhance shareholder value. The buyback was executed on the SIX Swiss Exchange by a bank acting independently of ABB, and the total shares repurchased since February 10, 2025, amount to 4,870,650. This move could strengthen ABB’s market position and signal confidence in its financial health to stakeholders.

ABB Executes Share Buyback Program, Enhancing Shareholder Value
Apr 3, 2025

ABB Ltd has repurchased 606,540 shares between March 27 and April 2, 2025, as part of its ongoing share buyback program. This initiative is conducted under Swiss and EU financial regulations, with the total number of shares bought back since February 10, 2025, reaching 4,138,876. The buyback program aims to optimize capital structure and return value to shareholders, reflecting ABB’s strong financial position and commitment to shareholder returns.

ABB Shareholders Approve All Proposals at 2025 AGM
Mar 27, 2025

At its 2025 Annual General Meeting, ABB shareholders approved all Board proposals, including an increased dividend of CHF 0.90 per share and the re-election of most board members, with Claudia Nemat joining and Lars Förberg stepping down. The approvals reflect strong shareholder support for ABB’s strategic direction and governance, potentially strengthening its market position and stakeholder confidence.

ABB Ltd Completes Share Buyback of 641,633 Shares
Mar 27, 2025

ABB Ltd announced the repurchase of 641,633 shares between March 20 and March 26, 2025, as part of its ongoing share buyback program. This initiative, conducted in compliance with Swiss and EU regulations, aims to enhance shareholder value and reflects ABB’s confidence in its business strategy and market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2025