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AbbVie Inc ABBV

Morningstar Rating
$178.09 +1.34 (0.76%)
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Company Report

AbbVie: Robert Michael's Appointment as CEO Suggests Continuity of Business Strategy

AbbVie’s announcement that Robert Michael has been appointed to succeed Rick Gonzalez as CEO supports the continuity of the company’s overall strategy, and we don't expect any changes to our fair value estimate. Gonzalez is 70 years old, so we believe his retirement from the top spot is natural. Michael brings excellent experience to the CEO role, having spent more than 30 years at AbbVie and former parent Abbott in many leadership positions, including chief financial officer and chief operating officer. We expect the transition, which will occur July 1, to be seamless. Gonzalez will continue with AbbVie as executive chair of the board, continuing to provide higher-level oversight of the company. Under Gonzalez’s leadership, AbbVie navigated one of the industry’s largest patent losses (immunology drug Humira) and emerged as a well-positioned drug company with a wide economic moat. We expect continued successful development and marketing of next-generation drugs with Michael as CEO.

Price vs Fair Value

ABBV is trading at a 6% premium.
Price
$178.09
Fair Value
$982.00
Uncertainty
High
1-Star Price
$637.10
5-Star Price
$471.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

AbbVie supports a strong dividend yield, which should act as valuation support, as the cash flows to support the dividend look secure over the next several years.

Bears

AbbVie has had to depend on acquisitions to boost its late-stage pipeline, suggesting less successful internal research and development activities.

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News

Trading Information

Previous Close Price
$176.75
Day Range
$177.01178.91
52-Week Range
$130.96178.92
Bid/Ask
$176.09 / $179.79
Market Cap
$314.59 Bil
Volume/Avg
3.9 Mil / 5.4 Mil

Key Statistics

Price/Earnings (Normalized)
14.63
Price/Sales
5.69
Dividend Yield (Trailing)
3.36%
Dividend Yield (Forward)
3.48%
Total Yield
3.99%

Company Profile

AbbVie is a pharmaceutical firm with a strong exposure to immunology (with Humira, Skyrizi, and Rinvoq) and oncology (with Imbruvica and Venclexta). The company was spun off from Abbott in early 2013. The 2020 acquisition of Allergan added several new products and drugs in aesthetics (including Botox).
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Value
Total Number of Employees
50,000

Competitors

Valuation

Metric
ABBV
LLY
MRK
Price/Earnings (Normalized)
14.6394.7840.72
Price/Book Value
25.4664.077.73
Price/Sales
5.6921.075.46
Price/Cash Flow
13.8899.8916.13
Price/Earnings
ABBV
LLY
MRK

Financial Strength

Metric
ABBV
LLY
MRK
Quick Ratio
0.630.520.83
Current Ratio
0.870.941.38
Interest Coverage
3.5714.137.59
Quick Ratio
ABBV
LLY
MRK

Profitability

Metric
ABBV
LLY
MRK
Return on Assets (Normalized)
14.54%10.22%7.38%
Return on Equity (Normalized)
150.11%52.03%18.18%
Return on Invested Capital (Normalized)
28.30%19.27%10.92%
Return on Assets
ABBV
LLY
MRK
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Drug Manufacturers - General Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
LLY
Eli Lilly and CoTspk$731.2 Bil
JNJ
Johnson & JohnsonHshl$389.8 Bil
MRK
Merck & Co IncCjbh$328.0 Bil
NVS
Novartis AG ADRMrzbs$212.8 Bil
RHHBY
Roche Holding AG ADRYct$212.4 Bil
AZN
AstraZeneca PLC ADRCnrn$200.6 Bil
PFE
Pfizer IncNhr$156.8 Bil
AMGN
Amgen IncKlg$155.0 Bil
SNY
Sanofi SA ADRSqm$121.2 Bil

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