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ABB Ltd (CH:ABBN)
:ABBN
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ABB Ltd (ABBN) AI Stock Analysis

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CH:ABBN

ABB Ltd

(LSE:ABBN)

Rating:75Outperform
Price Target:
CHF60.00
▲(11.52% Upside)
ABB Ltd's overall stock score is driven by strong financial performance and positive earnings call highlights, including record order intake and robust segment growth. Technical analysis supports a bullish outlook, although the stock's valuation appears high relative to peers. Challenges in specific segments and regions temper the overall positive sentiment.
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 (ABBN) is a globally recognized technology company headquartered in Zurich, Switzerland, specializing in electrification, automation, robotics, and digitalization across various industries. The company operates primarily in four main sectors: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation. ABB's core products and services include power and automation solutions, robotics systems, electric vehicle charging infrastructure, and advanced digital services aimed at optimizing industrial processes and energy use.
How the Company Makes MoneyABB generates revenue through multiple streams, primarily from the sale of its products and services in the aforementioned sectors. The Electrification segment is a significant contributor, providing a range of electrical equipment, such as circuit breakers, transformers, and electric vehicle charging stations. The Industrial Automation sector focuses on automation solutions and services that enhance productivity and efficiency for manufacturers. The Motion segment includes motors, drives, and services that cater to various industries, while the Robotics & Discrete Automation sector generates income through the sale of robotic systems and software. ABB also leverages service contracts, offering maintenance and support services, which provide recurring revenue. Strategic partnerships with key players in various industries, as well as investments in digital technologies and sustainability initiatives, further enhance ABB's ability to drive growth and profitability.

ABB Ltd Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong order intake, new product launches, and geographical growth, particularly in Electrification and Process Automation. However, challenges in Machine Automation and certain market segments like automotive and residential were noted. Overall, the positives outweigh the negatives, indicating a robust performance.
Q2-2025 Updates
Positive Updates
Record High Order Intake
Achieved a record high order intake of $9.8 billion, up 14% on a comparable basis, driven by a large order in Process Automation worth approximately $600 million.
Recognition for Sustainability
ABB was recognized by TIME Magazine as one of the top 15 most sustainable companies in the world, showcasing success in sustainability integration within operations.
Launch of New Products
Introduced three new robot families and upgraded the Emax 3 air circuit breaker, expanding market scope and enhancing product offerings with advanced technology.
Strong Performance in Electrification
Electrification segment achieved all-time high orders of $4.5 billion and revenues of $4.3 billion, with a margin improvement to 23.9%, driven by strong demand in utilities and data centers.
Operational EBITA Growth
Operational EBITA was up by 9% to $1.7 billion, with a margin of 19.2%, driven by Electrification and Process Automation.
Geographical Growth
The Americas saw a 28% like-for-like increase, with significant contributions from the U.S., while Asia, Middle East, and Africa improved by 6%.
Negative Updates
Challenges in Machine Automation
Faced challenges in the Machine Automation division with margin pressure and a small loss due to lower volumes and cost under absorption.
Weakness in Automotive and Residential Segments
Continued challenges in the automotive segment impacting robotics orders and weakness in the residential building segment, particularly in China.
Slight Revenue Shortfall in Process Automation
Process Automation revenues came in slightly below expectations at $1.8 billion due to short-term timing of deliveries.
Inventory Issues in Machine Automation
Machine Automation orders remained subdued as customers balanced new ordering with inventory levels.
Company Guidance
In the second quarter of 2025, ABB reported a record high order intake of $9.8 billion, reflecting a 14% increase on a comparable basis, with a significant $600 million order in Process Automation. Overall, orders grew by 7% excluding this large order, with all four business areas showing improvements in the 3% to 9% range. Revenue reached an all-time high of $8.9 billion, up 6% year-on-year, supported by both short- and long-cycle businesses, as well as service. The operational EBITA increased by 9% to $1.7 billion, with a margin slightly above expectations at 19.2%. The company maintained a strong book-to-bill ratio of 1.1, with all regions contributing positively to its growth. ABB's performance was particularly robust in the Americas, which saw a 28% increase in orders. Despite challenges in the automotive and machine automation sectors, ABB reported strong demand in utilities, data centers, and marine segments. The Electrification business achieved record orders and revenues, with a positive book-to-bill ratio of 1.04, while Process Automation orders increased by 40% on a comparable basis. ABB also highlighted its recognition by TIME Magazine as one of the top 15 most sustainable companies globally.

ABB Ltd Financial Statement Overview

Summary
ABB Ltd demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and a solid balance sheet. While cash flow growth has seen some fluctuations, the company maintains a stable cash flow position. Overall, ABB Ltd is well-positioned in the Electrical Equipment & Parts industry, with a balanced approach to growth and financial stability.
Income Statement
85
Very Positive
ABB Ltd shows strong financial performance with consistent revenue growth and improving profit margins. The TTM data indicates a gross profit margin of 38.87% and a net profit margin of 12.47%, both of which are healthy and show an upward trend. The EBIT and EBITDA margins have also improved, indicating efficient cost management. The revenue growth rate of 2.01% in the TTM period, while modest, reflects steady growth in a competitive industry.
Balance Sheet
78
Positive
The balance sheet of ABB Ltd is solid with a manageable debt-to-equity ratio of 0.69 in the TTM period, indicating a balanced approach to leveraging. The return on equity is strong at 29.82%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 32.87%, reflecting a stable financial structure with a good proportion of equity financing.
Cash Flow
70
Positive
Cash flow analysis reveals a slight decline in free cash flow growth, but the company maintains a healthy free cash flow to net income ratio of 80.58% in the TTM period. The operating cash flow to net income ratio is 29.39%, indicating adequate cash generation from operations. While there is a decrease in free cash flow growth, the overall cash flow position remains stable.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.58B32.85B32.23B29.45B28.95B26.13B
Gross Profit13.05B12.27B11.21B9.71B9.47B7.88B
EBITDA6.68B6.13B5.83B4.34B6.83B2.47B
Net Income4.19B3.94B3.75B2.48B4.55B345.00M
Balance Sheet
Total Assets42.80B40.36B40.94B39.15B40.26B41.09B
Cash, Cash Equivalents and Short-Term Investments5.11B5.64B5.82B4.88B5.33B5.39B
Total Debt9.69B7.81B8.74B8.55B6.48B7.12B
Total Liabilities28.20B25.30B26.79B25.88B24.30B25.09B
Stockholders Equity14.07B14.49B13.41B12.78B15.58B15.69B
Cash Flow
Free Cash Flow3.73B3.83B3.52B525.00M2.51B999.00M
Operating Cash Flow4.63B4.67B4.29B1.29B3.33B1.69B
Investing Cash Flow-2.28B-725.00M-1.61B981.00M2.31B6.76B
Financing Cash Flow-2.11B-3.33B-2.90B-2.39B-4.97B-8.18B

ABB Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.80
Price Trends
50DMA
50.70
Positive
100DMA
47.84
Positive
200DMA
48.45
Positive
Market Momentum
MACD
0.82
Positive
RSI
58.03
Neutral
STOCH
61.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ABBN, the sentiment is Positive. The current price of 53.8 is above the 20-day moving average (MA) of 53.64, above the 50-day MA of 50.70, and above the 200-day MA of 48.45, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ABBN.

ABB Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
CHF98.80B27.3531.19%1.66%0.98%7.92%
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
49
Neutral
CHF438.91M99.21
2.84%-13.64%-281.19%
$2.28B16.11-6.00%2.09%
$749.32M79.135.60%8.30%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:ABBN
ABB Ltd
53.80
6.73
14.30%
CH:KOMN
Komax Holding AG
85.60
-43.40
-33.64%
LGYRF
Landis+Gyr Group AG
78.63
-8.64
-9.90%
LMHDF
LEM Holding SA
658.45
-993.32
-60.14%

ABB Ltd Corporate Events

ABB Ltd Continues Strategic Share Buyback Program
Aug 7, 2025

ABB Ltd has repurchased 337,000 shares between July 31 and August 6, 2025, as part of its ongoing share buyback program initiated in February 2025. This move is conducted under Swiss and EU regulations, with the total shares repurchased under the current program reaching over 14 million. The buyback is executed by a bank on a separate trading line on the SIX Swiss Exchange, with the bank making independent trading decisions. This initiative is part of ABB’s strategy to manage its capital structure and potentially 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 Ltd Completes Latest Phase of Share Buyback Program
Jul 31, 2025

ABB Ltd announced the repurchase of 446,000 shares between July 24 and July 30, 2025, as part of its ongoing share buyback program initiated in February 2025. This move, conducted under strict regulatory compliance, reflects ABB’s strategic financial management and commitment to enhancing shareholder value, with a total of 14,080,347 shares repurchased to date.

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
Jul 24, 2025

ABB Ltd has repurchased 441,671 shares between July 17 and July 23, 2025, as part of its ongoing share buyback program initiated in February 2025. This move aligns with regulatory standards and is executed independently by a bank on the SIX Swiss Exchange. The total shares bought back under this program now amount to 13,634,347, reflecting ABB’s strategic focus on enhancing 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 Completes Share Buyback Program in July 2025
Jul 17, 2025

ABB Ltd has completed a share buyback program from July 10 to July 16, 2025, repurchasing 578,523 shares as part of a broader initiative announced earlier in the year. This buyback is conducted under specific financial regulations and aims to optimize the company’s capital structure, potentially benefiting shareholders by increasing the value of remaining shares.

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 Achieves Record Order Intake and Operational Growth in Q2 2025
Jul 17, 2025

ABB Ltd has reported a record high order intake and improved business performance for the second quarter of 2025, with a 16% increase in order intake and an 8% rise in revenue. The company has achieved significant operational improvements across its business areas, particularly in Process Automation, despite geopolitical uncertainties. ABB’s strategic focus on sustainability and innovation is evidenced by its recognition as one of the most sustainable companies globally and the introduction of new products, including three new robot families and the SACE Emax 3 circuit breaker. These developments are expected to strengthen ABB’s market position and support its growth objectives.

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 Achieves Record Order Intake and Strong Q2 Performance
Jul 17, 2025

ABB Ltd reported a record-high order intake of $9.8 billion in Q2 2025, reflecting a 16% increase, driven by strong performance across its business areas and geographical regions. The company’s revenues rose by 8%, and operational EBITA improved by 9%, despite challenges in the Robotics & Discrete Automation division. ABB’s strategic focus on sustainability was recognized by TIME Magazine, and the company launched new products to strengthen its market position. The planned spin-off of the Robotics division is on track, and the company anticipates continued revenue growth and stable EBITA margins amidst global uncertainties.

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
Jul 10, 2025

ABB Ltd announced the repurchase of 557,690 shares between July 3 and July 9, 2025, as part of its ongoing share buyback program. This initiative, conducted in compliance with relevant financial regulations, reflects ABB’s strategic efforts to optimize shareholder value and strengthen its market position.

The most recent analyst rating on (CH:ABBN) stock is a Hold with a CHF46.00 price target. To see the full list of analyst forecasts on ABB Ltd stock, see the CH:ABBN Stock Forecast page.

ABB Ltd Completes Share Buyback of 544,976 Shares
Jul 3, 2025

ABB Ltd has repurchased 544,976 shares between June 26 and July 2, 2025, as part of its ongoing share buyback program initiated in February 2025. This move is in line with regulatory standards and aims to optimize the company’s capital structure, potentially enhancing shareholder value and market 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 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.

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: Aug 06, 2025