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ABB Ltd ADR ABBNY

Morningstar Rating
$46.18 +0.14 (0.30%)
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Company Report

ABB: Morten Wierod to Replace CEO Björn Rosengren

ABB announced Björn Rosengren will be retiring as CEO and will be replaced by company veteran Morten Wierod from July 31. Rosengren lived up to his reputation as a turnaround specialist during his tenure at ABB, playing a pivotal role in improving the group’s EBITA margin from 11% to 17%, through decentralization and portfolio management. We believe the departure of Rosengren confirms our view mentioned in our earnings note on Feb. 1, “ABB Earnings: Margins Reached Record Levels; Slight Improvement in Fiscal 2024 Guidance,” that the major components of the restructuring have largely been completed and therefore, we don’t expect material operating margin improvement in future. We maintain our CHF 36.50 fair value estimate and view shares as fairly valued.

Price vs Fair Value

ABBNY is trading at a 13% premium.
Price
$46.18
Fair Value
$36.00
Uncertainty
Medium
1-Star Price
$68.25
5-Star Price
$78.10
Economic Moat
Zhk
Capital Allocation
Lpwmwwj

Bulls Say, Bears Say

Bulls

ABB’s products are well positioned for secular trends such as industrial automation, robotics, and the energy transition to renewables, which is further supported by its record order backlog.

Bears

Its short-cycle business has grown to over 50% of group revenue, reducing the visibility that its order backlog has historically provided to investors.

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News

Trading Information

Previous Close Price
$46.04
Day Range
$45.7446.18
52-Week Range
$31.5746.31
Bid/Ask
$46.00 / $46.22
Market Cap
$84.93 Bil
Volume/Avg
95,060 / 197,060

Key Statistics

Price/Earnings (Normalized)
20.70
Price/Sales
2.67
Dividend Yield (Trailing)
1.99%
Dividend Yield (Forward)
2.09%
Total Yield
3.29%

Company Profile

ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 19 business divisions. ABB is the number one or two supplier in two thirds of its product segments.
Sector
Industrials
Industry
Electrical Equipment & Parts
Stock Style Box
Large Growth
Total Number of Employees
107,870

Competitors

Valuation

Metric
ABBNY
HON
ROK
Price/Earnings (Normalized)
20.7021.3424.71
Price/Book Value
6.348.179.18
Price/Sales
2.673.623.66
Price/Cash Flow
19.4726.6622.30
Price/Earnings
ABBNY
HON
ROK

Financial Strength

Metric
ABBNY
HON
ROK
Quick Ratio
0.800.840.72
Current Ratio
1.181.271.25
Interest Coverage
17.779.9411.31
Quick Ratio
ABBNY
HON
ROK

Profitability

Metric
ABBNY
HON
ROK
Return on Assets (Normalized)
9.21%9.49%11.91%
Return on Equity (Normalized)
28.61%34.73%40.93%
Return on Invested Capital (Normalized)
16.80%16.29%19.30%
Return on Assets
ABBNY
HON
ROK
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Electrical Equipment & Parts Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ABLZF
ABB LtdKjvds$84.7 Bil
MIELY
Mitsubishi Electric Corp ADRJhdxz$33.9 Bil
MIELF
Mitsubishi Electric CorpZvvdry$33.9 Bil
VRT
Vertiv Holdings Co Class AYtbnxd$27.0 Bil
LGRVF
Legrand SAJgr$26.3 Bil
LGRDY
Legrand SA ADRCklpk$26.3 Bil
HAYW
Hayward Holdings IncFgfvfy$3.1 Bil
PLUG
Plug Power IncLlgpm$2.7 Bil
BE
Bloom Energy Corp Class ALtzp$2.0 Bil

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