10Y annualized return is
very good
at 11.3% per year
ABBV has met or exceeded earnings expectations in
most
recent quarters (9/10)
High Gross Profit Margin
Strong Return on Equity
Interest Coverage Ratio
Strong Revenue Performance
Robust Growth from Ex-Humira Portfolio
Diverse Pipeline and Strategic Transactions
Clear Growth Trajectory
No Significant Loss of Exclusivity Events
High Valuation Ratios
Low Net Profit Margin
High Debt Levels
Low Liquidity Ratios
Aesthetics Market Challenges
Potential Impact of Market Dynamics
Overall, AbbVie demonstrates a strong business quality with robust revenue performance and a diverse pipeline. However, challenges in the aesthetics market and potential impacts from external market dynamics pose risks to future growth. The company's well-positioned portfolio and limited loss of exclusivity events provide a positive outlook for sustained growth.
Analysis Date: January 31, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
AbbVie Inc. is a healthcare company that makes and sells medicines to help people with various health issues. They produce well-known treatments like HUMIRA for autoimmune diseases and Botox for cosmetic and medical uses. AbbVie also creates medications for conditions like arthritis, cancer, and digestive problems. Essentially, their main job is to discover and provide effective drugs that improve patients' lives.
Streams of revenue
Estimations for reference only
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Competitive Advantages
Key Business Risks
Latest News
Trump's tariff policy is the latest uncertainty to plague the pharmaceutical sector.
Besides Wall Street's top -and-bottom-line estimates for AbbVie (ABBV), review projections for some of its key metrics to gain a deeper understanding ...
Let's look at five big pharma companies, GILD, BMY, MRK, ABBV and SNY slated to release their first-quarter 2025 results this week.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$93.30
Current Market Price: $187.35
IV/P Ratio: 0.50x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-101.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ABBV
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (77.15)
P/B ratio ≤ 1.5 (99.26)
Current ratio ≥ 2.0 (0.66x)
Long-term debt < Net current assets (-4.58x)
Margin of safety (-101.0%)
ABBV does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
69.51%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
73.61%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.59%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
ABBV demonstrates a remarkable return on equity of 70.88%, showcasing effective management in generating profits from shareholders' equity.
The net profit margin of 7.59% indicates that, while ABBV is profitable, the proportion of revenue converted to profit is relatively low compared to industry peers.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
19.96x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.66x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 3.41 indicates that ABBV can comfortably cover its interest expenses, reflecting good financial stability.
ABBV has a debt-to-equity ratio of 20.19, which is quite high, indicating significant reliance on debt for financing, potentially increasing financial risk.
With a current ratio of 0.66 and a quick ratio of 0.55, ABBV may face challenges in meeting short-term obligations, suggesting lower liquidity.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
AbbVie reported full-year adjusted earnings per share of $10.12, exceeding initial guidance by $0.49. Total net revenues were $56.3 billion, which is over $2 billion above guidance, demonstrating strong execution.
AbbVie's ex-Humira platform achieved over 18% sales growth, with an acceleration to 22% in Q4 2024, indicating strong demand and successful market capture.
The company has advanced its pipeline significantly with multiple key regulatory approvals and over 20 early-stage deals in 2024, enhancing its innovation capacity.
The aesthetics segment has seen a decline due to challenging market conditions and promotional dynamics, particularly in the U.S. and China, which may impact future revenue growth.
AbbVie expects to deliver robust mid-single-digit revenue growth in 2025, supported by strong performance from Skyrizi and Rinvoq, projected to generate nearly $24 billion in revenue.
With no significant LOE events expected for the rest of the decade, AbbVie has a clear runway for growth for at least the next eight years.
The ongoing biosimilar competition for Humira and changes in Medicare Part D may create headwinds that could impact sales dynamics, particularly in the U.S. market.