AbbVie (ABBV) AI Stock Analysis

• Market Cap: $307.41B
• Dividend Yield: 3.62%
• Average Volume (3M): 8.69M
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.23
• Revenue Growth: 3.71%
• EPS Growth: -12.14%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 64
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.39
• Shares Outstanding: 1,768,978,300
• 10 Day Avg. Volume: 10,176,960
• 30 Day Avg. Volume: 8,692,846
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.58
• Price to Cash Flow (P/CF): 13.20
• P/FCF Ratio: 12.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $212.00
• Price Target Upside: 17.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

AbbVie's overall stock score reflects a balance of strong profitability and cash flow generation with financial stability concerns due to high leverage. While technical indicators suggest a bearish trend, the stock's high P/E ratio indicates potential overvaluation. Nonetheless, the company's earnings call and new leadership bring optimism for future growth, supported by a solid dividend yield.

Positive Factors

Immunology Franchise Growth

The strong growth algorithm for commercial powerhouses Skyrizi and Rinvoq, the two key pillars of the company's core Immunology franchise, is driving the company's topline.

Market Performance

AbbVie’s share price has been the best performer in US/EU large pharma, up 22% ytd.

Strategic Expansion

ABBV announced a licensing agreement to co-develop a treatment for obesity, which indicates a strategic expansion into this market.

Negative Factors

Aesthetics Franchise Challenges

Challenging conditions are expected to continue for the Aesthetics franchise due to sluggish macro-economic dynamics and suppressed consumer sentiment.

Pipeline and Growth Concerns

No major pipeline catalysts are ahead, creating a tougher near-term setup for Abbvie's portfolio.

Pricing and Competition

The company's sizeable Neuroscience and Oncology businesses are facing some near-term pricing pressures and competition.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie 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 Money

AbbVie 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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.33B	54.32B	58.05B	56.20B	45.80B
	Gross Profit
39.43B	33.90B	40.64B	38.75B	30.42B
	EBIT
9.14B	12.76B	18.12B	17.92B	11.36B
	EBITDA
14.91B	17.31B	31.42B	28.28B	21.15B
	Net Income Common Stockholders
4.28B	4.86B	11.84B	11.54B	4.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.55B	12.82B	9.23B	9.83B	8.48B
	Total Assets
135.16B	134.71B	138.81B	146.53B	150.56B
	Total Debt
67.14B	59.38B	63.27B	76.68B	86.06B
	Net Debt
61.62B	46.57B	54.07B	66.94B	77.61B
	Total Liabilities
131.80B	124.31B	121.52B	131.09B	137.47B
	Stockholders Equity
3.33B	10.36B	17.25B	15.41B	13.08B
Cash Flow		Free Cash Flow
18.81B	22.06B	24.25B	21.99B	16.79B
	Operating Cash Flow
18.81B	22.84B	24.94B	22.78B	17.59B
	Investing Cash Flow
-20.82B	-2.01B	-623.00M	-2.34B	-37.56B
	Financing Cash Flow
-5.21B	-17.22B	-24.80B	-19.04B	-11.50B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 180.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Negative. The current price of 180.37 is below the 20-day moving average (MA) of 184.40, below the 50-day MA of 196.56, and below the 200-day MA of 184.84, indicating a bearish trend. The MACD of -6.87 indicates Negative momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABBV.

AbbVie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNJ	79 Outperform	$371.98B	26.66	29.45%	3.14%	-0.37%	―
MRK	74 Outperform	$198.72B	11.72	40.81%	4.00%	6.85%	4577.79%
AZN	73 Outperform	$208.82B	29.91	17.60%	2.24%	18.03%	18.11%
PFE	68 Neutral	$127.78B	15.99	9.05%	7.50%	8.77%	272.80%
ABBV	60 Neutral	$307.41B	72.70	61.94%	3.62%	3.71%	-12.14%
AMGN	60 Neutral	$149.68B	36.82	67.55%	3.28%	18.64%	-39.39%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%

AbbVie Corporate Events

AbbVie Appoints Robert A. Michael as Chairman

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.