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ABB Ltd
(OTC:ABBNY)
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Rating:74Outperform
Price Target:
$123.00
â–²(26.92% Upside)
Action:Reiterated
Date:04/23/26
The score is driven primarily by solid financial performance (improving earnings power, resilient margins, and stronger free cash flow). Technicals are supportive due to a strong uptrend, but overbought signals raise near-term risk. Valuation is a headwind given the higher P/E and modest dividend yield.
Positive Factors
Strong free cash flow
Consistently rising free cash flow (FCF ~4.8B TTM) that equals ~81% of net income indicates earnings are backed by cash. Durable FCF supports capital spending, service expansion, dividends/ buybacks, and deleveraging, increasing long-term financial flexibility.
Negative Factors
Uneven revenue growth / cyclicality
ABB's top-line growth has been inconsistent, reflecting dependence on large project cycles and industrial demand variability. This structural cyclicality can lead to volatile order timing and margins, constraining predictability of cash flows and planning for capacity or hiring.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistently rising free cash flow (FCF ~4.8B TTM) that equals ~81% of net income indicates earnings are backed by cash. Durable FCF supports capital spending, service expansion, dividends/ buybacks, and deleveraging, increasing long-term financial flexibility.
Read all positive factors
ABB Ltd Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$187.80B
Dividend Yield0.8%
Average Volume (3M)84.12K
Price to Earnings (P/E)38.9
Beta (1Y)1.09
Revenue Growth8.76%
EPS Growth21.71%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)2.72
Shares Outstanding1,823,154,400
10 Day Avg. Volume163,620
30 Day Avg. Volume84,120
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)8.40
Price to Sales (P/S)4.07
P/FCF Ratio30.25
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue5.59
Enterprise Value/Gross Profit13.93
Enterprise Value/Ebitda27.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.41
Revenue Forecast (FY)$37.54B
ABB Ltd Business Overview & Revenue Model
Company Description
ABB Ltd, established in 1883 and headquartered in Zurich, Switzerland, operates as a global technology pioneer, delivering electrification, automation, robotics, and motion products and solutions. The company caters to a diverse international clie...
How the Company Makes Money
ABB makes money primarily by selling industrial and electrical equipment, automation systems, and associated software and services to business and public-sector customers worldwide. Its revenue model is a mix of (1) product and system sales—such a...
ABB Ltd Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant order growth, record revenue, improved operational EBITA, and increased free cash flow. However, challenges remain in specific areas, particularly in China and the Machine Automation division, and there are some transition costs related to the sale of the Robotics division.Positive Updates
9% Order Growth
Orders increased by a comparable 9%, reaching $9.1 billion, with all four business areas showing improvement in orders ranging from 4% to 17%.
Negative Updates
Weakness in China
AMEA region declined by 1%, hampered by weakness in China, with specific weakness noted in the residential building market.
Read all updates
Q3-2025 Updates
Positive
Negative
9% Order Growth
Orders increased by a comparable 9%, reaching $9.1 billion, with all four business areas showing improvement in orders ranging from 4% to 17%.
Read all positive updates
Company Guidance
In the third quarter of 2025, ABB reported a strong performance, achieving a 9% increase in orders, reaching $9.1 billion. The company also reported record revenues of $9.1 billion, supported by growth across all business areas, and a significant free cash flow of $1.6 billion. The operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%. ABB's earnings per share rose by 29% to $0.66. Geographically, the Americas led growth with a 19% like-for-like increase, notably with a 27% rise in the U.S. market. Europe saw a 9% increase, while the AMEA region experienced a slight decline of 1%, impacted by weakness in China. ABB also announced the decision to sell its Robotics division to SoftBank Group, shifting its focus towards strengthening its core business areas. The company's order backlog reached a record high of $25.1 billion, with a book-to-bill ratio of 1.01x, indicating strong future demand. ABB's guidance anticipates mid-single-digit revenue growth in the fourth quarter, with operational EBITA margins expected to soften due to seasonal patterns.ABB Ltd Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.74B | 33.22B | 32.85B | 32.23B | 29.45B | 28.95B |
| Gross Profit | 14.33B | 13.64B | 12.27B | 11.21B | 9.71B | 9.47B |
| EBITDA | 7.34B | 7.12B | 6.13B | 5.83B | 4.34B | 6.83B |
| Net Income | 4.95B | 4.73B | 3.94B | 3.75B | 2.48B | 4.55B |
Balance Sheet | ||||||
| Total Assets | 44.63B | 44.88B | 40.36B | 40.94B | 39.15B | 40.26B |
| Cash, Cash Equivalents and Short-Term Investments | 5.93B | 6.62B | 5.64B | 5.82B | 4.88B | 5.33B |
| Total Debt | 9.00B | 9.09B | 7.81B | 8.74B | 8.55B | 6.48B |
| Total Liabilities | 29.26B | 28.24B | 25.30B | 26.79B | 25.88B | 24.30B |
| Stockholders Equity | 14.77B | 16.09B | 14.49B | 13.41B | 12.78B | 15.58B |
Cash Flow | ||||||
| Free Cash Flow | 4.78B | 4.47B | 3.83B | 3.52B | 525.00M | 2.51B |
| Operating Cash Flow | 5.82B | 5.47B | 4.67B | 4.29B | 1.29B | 3.33B |
| Investing Cash Flow | -1.88B | -2.39B | -725.00M | -1.61B | 981.00M | 2.31B |
| Financing Cash Flow | -5.13B | -2.88B | -3.33B | -2.90B | -2.39B | -4.97B |
ABB Ltd Technical Analysis
Neutral
96.91
Price Trends
103.35
Positive
94.82
Positive
83.83
Positive
Market Momentum
0.99
Positive
49.12
Neutral
43.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBNY, the sentiment is Neutral. The current price of 96.91 is below the 20-day moving average (MA) of 105.57, below the 50-day MA of 103.35, and above the 200-day MA of 83.83, indicating a neutral trend. The MACD of 0.99 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 43.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABBNY.
ABB Ltd Risk Analysis
ABB Ltd disclosed 27 risk factors in its most recent earnings report. ABB Ltd reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ABB Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $8.10B | 28.59 | 15.60% | 0.67% | 3.70% | -14.17% | |
78 Outperform | $26.35B | 53.73 | 13.36% | 0.84% | 34.18% | -15.12% | |
76 Outperform | $10.85B | 23.79 | 15.71% | 0.18% | 10.50% | 18.92% | |
76 Outperform | $27.32B | 30.26 | 24.45% | 1.18% | 7.18% | 14.32% | |
75 Outperform | $116.75B | 75.24 | 42.06% | 0.11% | 28.95% | 130.56% | |
74 Outperform | $187.80B | 38.88 | 33.07% | 0.80% | 8.76% | 21.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.