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AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)71Outperform
Positive Factors
Company Performance
Reiteration of an Outperform rating on ABBV shares suggests continued confidence in the company's future performance.
Strategic Expansion
ABBV announced a licensing agreement to co-develop a treatment for obesity, which indicates a strategic expansion into this market.
Negative Factors
Treatment Tolerability
GI-related adverse events were dose dependent, with the highest dose having an 83% nausea and 17% vomiting rate, indicating potential challenges in treatment tolerability.
AbbVie (ABBV) vs. S&P 500 (SPY)
Market Cap
$366.77B
Dividend Yield2.97%
Average Volume (3M)6.32M
Price to Earnings (P/E)86.9
Beta (1Y)0.23
Revenue Growth3.71%
EPS Growth-12.14%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)2.39
Shares Outstanding1,765,354,900
10 Day Avg. Volume6,805,889
30 Day Avg. Volume6,321,275
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.63
Price to Cash Flow (P/CF)13.20
P/FCF Ratio12.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$213.07Price Target Upside2.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
AbbVie Business Overview & Revenue Model
Company DescriptionAbbVie Inc. is a global, research-driven biopharmaceutical company that focuses on developing and delivering innovative medicines and therapies. Established in 2013 as a spin-off from Abbott Laboratories, AbbVie operates in the healthcare sector, primarily focusing on immunology, oncology, virology, and neuroscience. The company is known for its robust portfolio of products, including its flagship drug Humira, along with other significant treatments like Imbruvica and Venclexta.
How the Company Makes MoneyAbbVie generates revenue primarily through the sale of its pharmaceutical products. Humira, a treatment for autoimmune diseases, has historically been a significant driver of revenue, although the company is actively diversifying its portfolio to mitigate reliance on a single product. AbbVie's revenue streams include prescription drug sales in therapeutic areas such as immunology, oncology, and neuroscience, where it holds a competitive position with products like Skyrizi and Rinvoq. Additionally, AbbVie benefits from strategic partnerships and acquisitions, such as its acquisition of Allergan, which expanded its product offerings in areas like aesthetics. The company's revenue is also supported by ongoing research and development efforts, which aim to bring new therapies to market and extend the lifecycle of existing products.
AbbVie Financial Statement Overview
Summary
AbbVie demonstrates strong profitability and cash flow generation, though high leverage and declining equity raise financial stability concerns. The missing revenue data for 2024 significantly impacts income analysis, highlighting the need for caution in future periods. While cash flow supports operations well, balance sheet risks due to high debt necessitate careful management.Income Statement
AbbVie's revenue has shown fluctuations over the years, with a decline in 2023 followed by a significant drop in 2024 due to missing revenue data. The gross profit margin and net profit margin indicate robust profitability in 2023, but the lack of data for 2024 limits the analysis. Overall, strong margins reflect stability, though recent revenue volatility poses concerns.65
Positive
Balance Sheet
AbbVie maintains a high debt-to-equity ratio, reflecting significant leverage, which poses potential risks, especially with declining equity. The equity ratio has decreased, indicating reduced financial stability. Return on equity is not calculable for 2024 due to missing data. Overall, the balance sheet shows high leverage with declining equity, raising concerns about financial resilience.58
Neutral
Cash Flow
AbbVie's cash flow remains strong, with robust free cash flow and healthy operating cash flow to net income ratios. Although there was a decline in operating cash flow in 2023, it remains positive, indicating good cash management. Free cash flow has consistently supported net income, providing a good cushion for financial operations.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 57.35B | 56.33B | 54.32B | 58.05B | 56.20B | 45.80B | Gross Profit |
| 40.42B | 39.43B | 33.90B | 40.64B | 38.75B | 30.42B | EBIT |
| 17.39B | 9.14B | 12.76B | 18.12B | 17.92B | 11.36B | EBITDA |
| 30.86B | 14.91B | 17.31B | 31.42B | 28.28B | 21.15B | Net Income Common Stockholders |
| 12.64B | 4.28B | 4.86B | 11.84B | 11.54B | 4.62B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.55B | 5.55B | 12.82B | 9.23B | 9.83B | 8.48B | Total Assets |
| 135.16B | 135.16B | 134.71B | 138.81B | 146.53B | 150.56B | Total Debt |
| 67.14B | 67.14B | 59.38B | 63.27B | 76.68B | 86.06B | Net Debt |
| 61.62B | 61.62B | 46.57B | 54.07B | 66.94B | 77.61B | Total Liabilities |
| 131.80B | 131.80B | 124.31B | 121.52B | 131.09B | 137.47B | Stockholders Equity |
| 3.33B | 3.33B | 10.36B | 17.25B | 15.41B | 13.08B |
| Cash Flow | Free Cash Flow | ||||
| 22.21B | 18.81B | 22.06B | 24.25B | 21.99B | 16.79B | Operating Cash Flow |
| 22.92B | 18.81B | 22.84B | 24.94B | 22.78B | 17.59B | Investing Cash Flow |
| -3.22B | -20.82B | -2.01B | -623.00M | -2.34B | -37.56B | Financing Cash Flow |
| -19.63B | -5.21B | -17.22B | -24.80B | -19.04B | -11.50B |
AbbVie Technical Analysis
Positive
207.76
Price Trends
184.63
Positive
183.38
Positive
180.09
Positive
Market Momentum
7.19
Negative
72.42
Negative
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Positive. The current price of 207.76 is above the 20-day moving average (MA) of 198.39, above the 50-day MA of 184.63, and above the 200-day MA of 180.09, indicating a bullish trend. The MACD of 7.19 indicates Negative momentum. The RSI at 72.42 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABBV.
AbbVie Risk Analysis
AbbVie disclosed 29 risk factors in its most recent earnings report. AbbVie reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AbbVie Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $398.27B | 28.57 | 19.68% | 2.96% | -4.51% | 3.69% | |
74 Outperform | $863.84B | 77.78 | 73.95% | 0.58% | 32.00% | 102.18% | |
71 Outperform | $366.77B | 86.92 | 128.66% | 2.97% | 3.71% | -12.14% | |
71 Outperform | $235.30B | 13.83 | 36.96% | 3.35% | 6.85% | 4577.79% | |
69 Neutral | $145.93B | 18.28 | 8.68% | 6.44% | 8.77% | 272.80% | |
60 Neutral | $120.62B | ― | -54.78% | 4.04% | 7.32% | -214.24% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
ABBV
AbbVie
207.76
34.90
20.19%
BMY
Bristol-Myers Squibb
59.44
10.09
20.45%
LLY
Eli Lilly & Co
911.06
138.49
17.93%
JNJ
Johnson & Johnson
165.42
10.42
6.72%
MRK
Merck & Company
92.56
-27.01
-22.59%
PFE
Pfizer
25.75
1.21
4.93%
AbbVie Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 18.28% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
AbbVie demonstrated strong financial performance in 2024 with notable growth in its ex-Humira platform and advancements in neuroscience and oncology. However, challenges persist with Humira revenue erosion and the aesthetic market facing economic headwinds. Overall, the company is poised for robust growth in 2025 despite these challenges.Highlights
Record-Breaking Revenue and Growth
AbbVie delivered full-year adjusted earnings per share of $10.12, which is $0.49 above initial guidance midpoint. Total net revenues were $56.3 billion, exceeding initial guidance by more than $2 billion. Full-year revenue was up 4.6% on an operational basis.
Strong Performance of Ex-Humira Platform
Ex-Humira platform delivered full-year sales growth of more than 18% with Q4 revenue growth accelerating to 22%. Skyrizi and Rinvoq collectively are expected to generate nearly $24 billion of revenue in 2025, reflecting growth of more than $6 billion.
Robust Neuroscience and Oncology Growth
Neuroscience sales are expected to reach $10 billion in 2025, reflecting growth of $1 billion. Oncology prospects are strong with notable contributions from Venclexta, Elahere, and other assets.
Pipeline Advancements and Approvals
Recent approvals include Skyrizi in UC, Epkinly for follicular lymphoma, and new indications for Botox and Juvéderm. Over 20 early-stage deals signed in 2024, enhancing pipeline depth in immunology, oncology, and neuroscience.
Lowlights
Humira Revenue Erosion
Global sales of Humira were more than $1.6 billion, experiencing a decline of 48.7% on an operational basis due to biosimilar competition.
Aesthetic Market Challenges
Fourth quarter global aesthetic sales declined by 4.4% operationally. U.S. sales were impacted by challenging market conditions, with a 5% decline. The Chinese market also faced headwinds due to economic factors.
IMBRUVICA Revenue Decline
IMBRUVICA global revenues were $848 million, down 6.2%, reflecting continued competitive dynamics in CLL.
Company Guidance
During AbbVie's Fourth Quarter 2024 Earnings Conference Call, the company provided guidance highlighting robust growth expectations for 2025 and beyond. AbbVie reported full-year adjusted earnings per share of $10.12, surpassing its initial guidance midpoint by $0.49. Total net revenues for 2024 were $56.3 billion, exceeding initial guidance by over $2 billion, driven by a 4.6% operational revenue growth despite a $5 billion erosion in U.S. Humira sales. The ex-Humira platform showed remarkable performance with a sales growth of over 18% for the year and 22% growth in the fourth quarter. For 2025, AbbVie anticipates mid-single-digit revenue growth, with the ex-Humira platform expected to exceed prior peak revenue. Skyrizi and Rinvoq are projected to collectively generate nearly $24 billion in revenue in 2025, reflecting a $6 billion increase, with combined sales expected to exceed $31 billion by 2027. Neuroscience and oncology are also poised for growth, with expected sales of $10 billion and $6.3 billion in 2025, respectively. The aesthetics segment faced market challenges but is projected to deliver a high single-digit revenue CAGR through 2029. AbbVie plans to leverage its diverse portfolio and pipeline advancements, including multiple new indications and regulatory submissions, to drive sustained growth.AbbVie Corporate Events
Executive/Board Changes
AbbVie Appoints Robert A. Michael as Chairman
Positive
Feb 14, 2025
On February 14, 2025, AbbVie announced the appointment of CEO Robert A. Michael as chairman of the board, effective July 1, 2025, succeeding Richard A. Gonzalez, who will retire from the board. This leadership change marks a new phase for AbbVie, with expectations for continued growth and innovation under Michael’s guidance, leveraging his extensive experience and successful track record within the company.
Executive/Board Changes
AbbVie Announces Leadership Change with New Appointment
Neutral
Dec 13, 2024
AbbVie announced the retirement of Kevin K. Buckbee from his role as Senior Vice President, Controller, effective March 1, 2025, and the appointment of David R. Purdue to the position. Purdue, who has significant experience within AbbVie and its former parent company, Abbott Laboratories, will assume the role with an annual base salary of $550,000 and will be eligible for performance-based bonuses.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.