Skip to Content

ABB Ltd ABBN

Morningstar Rating
CHF 41.87 −0.25 (0.59%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

We Expect ABB to Maintain Current Record Profitability, but Further Margin Expansion Will Be Limited

ABB enjoys a number one or two market position in two thirds of its product segments, which is largely derived from centuries of deep-domain expertise in supplying mission-critical equipment with a high cost of failure for a variety of end markets. Its wide range of product categories and operating businesses have led to several costly restructuring programs and underperformance versus its European capital goods peers, due to the complexity of the organization. The divestment of its capital-intensive Power Grids business and the appointment to CEO of turnaround specialist Björn Rosengren have helped simplify the group through decentralization and active portfolio management, and subsequently improved the profitability of the business, comfortably exceeding its initial EBITA margin target of at least 15%. The departure of Rosengren as CEO in 2024 is a likely indication that the major components of the restructuring have been executed, reducing the magnitude of future margin expansion.

Price vs Fair Value

ABBN is trading at a 15% premium.
Price
CHF 42.12
Fair Value
CHF 29.10
Uncertainty
Medium
1-Star Price
CHF 63.79
5-Star Price
CHF 54.48
Economic Moat
Pjxv
Capital Allocation
Cntqcxqt

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ABBN is a good fit for your portfolio.

News

Trading Information

Previous Close Price
CHF 42.12
Day Range
CHF 41.6942.68
52-Week Range
CHF 29.1342.94
Bid/Ask
CHF 0.00 / CHF 0.00
Market Cap
CHF 77.54 Bil
Volume/Avg
2.7 Mil / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
21.15
Price/Sales
2.73
Dividend Yield (Trailing)
2.05%
Dividend Yield (Forward)
2.05%
Total Yield
3.32%

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
ABBN
HON
ROK
Price/Earnings (Normalized)
21.1521.0224.11
Price/Book Value
6.938.048.96
Price/Sales
2.733.573.57
Price/Cash Flow
19.8926.2621.76
Price/Earnings
ABBN
HON
ROK

Financial Strength

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

Profitability

Metric
ABBN
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
ABBN
HON
ROK
See how this stock stacks up to its competitors with Morningstar Investor

Electrical Equipment & Parts Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ABBNY
ABB Ltd ADRJmtvcxyzNxpk$86.9 Bil
ABLZF
ABB LtdZyr$85.8 Bil
MIELF
Mitsubishi Electric CorpWjzdj$34.6 Bil
MIELY
Mitsubishi Electric Corp ADRYlyhw$34.5 Bil
VRT
Vertiv Holdings Co Class AFlzbhn$31.2 Bil
LGRVF
Legrand SACtdtx$27.1 Bil
LGRDY
Legrand SA ADRRnmd$26.7 Bil
HAYW
Hayward Holdings IncPtywkphwdZrmxndl$3.0 Bil
BE
Bloom Energy Corp Class AMddzxytTqgq$2.6 Bil
PLUG
Plug Power IncSyyZynxb$2.0 Bil

Sponsor Center