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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Abbott Laboratories (XNYS:ABT) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
ABT
Name:
ABBOTT LABORATORIES (XNYS:ABT)
Sector:
1.74B
Industry:
Medical Devices
CEO:
Mr. Robert Ford
Total Employees:
113,000
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is -16.30% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ABBOTT LABORATORIES(ABT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL DEVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
102.5
One Month Price Target:
$102.91
Six Month Price Target :
$104.95
Likely Price in One Year's Time:
Ticker:
$107.39
Likely Trading Range Today Under (Normal Volatility)
$102.22
Price Upper limit ($) :
$102.88
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$98.56
This week:
$93.69
This month :
$84.88
Other Primary facts
Market Cap:
179.87B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
1.75B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
10.94%
-9.79%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$120.78
$112.36
$84.22
$92.64
Medium risk (<10%) entry points
Buy Call
Sell Call
$109.63
Buy Put:
Sell Put:
$107.83
$95.35
$97.17
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
ABT
Sharpe Ratio:
1.93%
Comparison:
ABT, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 27.12% higher than the industry
& is -15.52% lower than the market/S&P 500 average
Average Returns/Yield of
ABT
Daily returns:
0.05%
Weekly returns:
0.23%
Monthly returns:
0.91%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is -29.19% below industry average
Classification:
ABT, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.49
Statistical test of Returns:
ABT has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.89%
Weekly Volatility:
4.23%
Monthly Volatility:
8.47%
Yearly Volatility:
29.34%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.80%
Volatility in last five trading days has been -4.89% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.84%
Weekly VaR:
-8.59%
Monthly VaR:
-17.19%
How Much Can the price of
ABT
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-15%
Worst case (decline):
-59.55%
This translates to price declining to:
$87.45
This translates to price declining to:
$41.47
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
ABT is a 21.32% riskier investment compared to the market/S&P 500 & is 3.94% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -39.69% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
ABT
Beta in relation to market/S&P 500--0.71
Expected beta in 1 year's time:
0.565
Expected beta in 3 year's time:
0.798
Unlevered (debt free) Beta:
0.503
Beta in relation to Nasdaq (XNAS):
0.656
Beta in relation to all global stocks::
0.641
Beta Comparison & Analysis
Beta of competitors/peers::
0.633
Beta is 12.34% higher than peers
Average Industry Beta:
1.065
Beta is -33.27% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
11.45%
Sustainable growth rate is -12.08% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.029
Alpha is -41.86% below industry average alpha yield
Alpha is 182% higher than market/& is unsustainably high
Analysis of Cost of Capital of
ABT
Equity cost of capital:
0.080
Equity cost of capital is -23.23% below industry mean WACC
Unlevered (without debt) cost of capital:
5.68%
Before-tax cost of debt:
3.10%
After-tax cost of debt:
2.45%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.45%
WACC is -13.28% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$25.42
Revenue growth rate per share of (3Y):
5.04
Annual revenue growth rate is -89.37% below industry average
EPS:
$4.33
Expected Annual growth rate of EPS (3Y):
23.60%
Expected future EPS growth rate is 103.79% higher than the Medical Devices industry
Free cash flow (FCF) per share:
$4.59
Balance sheet equity growth per share: 60.78%
Equity growth rate per share is -46451.37% lower than the industry
Debt per share
$9.76
EBITDA per share
$7.42
Valuation Analysis Today of
ABT
P/E Ratio:
21.3
P/E Ratio of Competitors/Peers:
73.1
P/E ratio is -70.86% lower than main peers & is -91.25% lower than the industry
Stock price/value with industry average P/E ratio: $1,054.55
ABT is -90.28% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $97.37
Present value of the expected future dividends only: $50.09
P/S (Price to Sales ratio):
4.03
Price to sales ratio is -56.68% below the industry mean
P/B (Price to book value ratio):
5.04
Price to free cash flow: 22.33
-
Net income growth rate (3Y):
195.97%
Net income growth rate is 101.77% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 10.77%
Dividend yeild: 1.80%
Previous Dividend: $0.47
Previous adjusted dividend: $0.47
Previous Dividend: $1.84
Expected next dividend best case: $0.52
Expected next dividend worst case: $0.42
Average dividend payment (long-term): $0.41
Average dividend increase/decrease (growth rate) % per period: 4.19%
Expected next dividend payment date: 15/08/2022
Expected next dividend record date: 14/07/2022
Expected next dividend declaration date: 19/05/2022
Previous dividend payment date: 16/05/2022
Previous dividend record date: 15/04/2022
Previous dividend declaration date: 18/02/2022
Dividend History:
2022-04-13--$0.47
2021-10-14--$0.45
2021-04-14--$0.45
2022-01-13--$0.47
2021-07-14--$0.45
2021-01-14--$0.45
Dividend growth rate is 485.58% higher than the average industry
In-depth Debt & Leverage Analysis
Debt to equity ratio:
48.27%
Net debt to equity ratio:
26.60%
Debt to assets ratio:
23.09%
Net debt to assets ratio:
12.72%
Debt-to-asset ratio is -40.41% below industry average
Ability to repay debt:
Interest coverage ratio:
24.57
Interest coverage ratio is 84.23% more than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 4.21%
Analysis of Key Statistics
Correlation of price movement with the market:
0.683
Statistical significance of correlation:
ABT has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is 45.99% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
-0.01
Covariance of price movement with the market:
-0.011
Kurtosis
5.915
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.09
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
ABT
Gross Profit Margin Ratio:
228%
Operating Profit Margin Ratio:
20.73%
Operating profit margin is -221.42% lower than the industry
Net Profit Margin Ratio:
228%
Effective Tax Rate:
14.58%
Effective tax rate is -73.45% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
21.82%
Return on equity (ROE) is -322.58% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
10.44%
Return on assets (ROA) is -409.63% lower than the industry
Financial Leverage:
1.3x
Current Ratio:
1.85
Current ratio is -71.34% below industry average
Cash Conversion Cycle (days):
-61.8
Cash conversion cycle is -210.70% below industry average
The remaining useful life of property plant & equipment is: 1.7 years
Stock based compensation to net income ratio:
3.95%
In-depth Efficiency Analysis
Revenue generated per employee:
393.9K
Each employee generates 5% more revenue than industry average revenue per employee
EBITDA generated per employee:
115.0K
Each employee generates 1739% more EBITDA than industry average revenue per employee
Profit generated per employee:
68.4K
Each employee generates -330% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
15.4K
Each employee generates -209% less free cash flow than industry average revenue per employee
Assets/Capital per employee
447.6K
Each employee generates -209% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 13.31%
Growth rate in R&D investment/expenditure is -10247.26% lower than the industry
Competitors/Peer firms of
ABT
THERMO FISHER SCIENTIFIC INC. (XNYS:TMO)
ABBVIE INC. (XNYS:ABBV)
Novo Nordisk A/S (XNYS:NVO)
DANAHER CORPORATION (XNYS:DHR)
MERCK & CO., INC. (XNYS:MRK)
Novartis Inc. (XNYS:NVS)
ASTRAZENECA PLC (XNAS:AZN)
PFIZER INC. (XNYS:PFE)
MEDTRONIC PUBLIC LIMITED COMPANY (XNYS:MDT)
Current Analyst Ratings
Strong buy�29%
Buy�25%
Hold�29%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
44.51B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
19.12B
25.39B
2.79B
-
11.33B
-
2.05B
16.16B
46.00M
529.00M
3.43B
13.00B
9.23B
7.73B
9.04B
1.32B
7.73B
Statement of Cash Flow
Date:
Period:
823.00M
Differed Income Tax :
-
Stock Based Compensation :
305.00M
Change in Working Capital :
- 1305000.00K
Accounts Receivables:
- 751000.00K
Other Working Capital:
-
Other Non-Cash Items:
- 205000.00K
Net Cash Provided by Operating Activities:
2.07B
Investments in PP&E:
- 321000.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
7.68B
483.00M
8.16B
7.18B
5.69B
2.40B
23.43B
8.91B
23.18B
12.23B
763.00M
5.50B
-
50.58B
-
74.01B
4.76B
4.00M
338.00M
-
7.89B
12.65B
17.09B
8.65B
25.73B
-
38.38B
24.30B
33.30B
- 8474000.0K
- 13726000.00K
March 31, 2022 at 6:00:00 AM
35.29B
35.40B
73.78B
1.25B
17.09B
9.4B
-
- 39000.00K
- 360000.00K
- 751000.00K
-
- 2307000.00K
- 832000.00K
67.00M
- 3823000.00K
- 6000.00K
- 2124000.00K
7.68B
9.80B
2.07B
- 321000.00K
1.74B
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
ABT
2023
2024
2025
2026
2027
$107.93
$202.66
$212.34
$222.48
$233.10