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AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)
60Neutral
Positive Factors
Drug Approval
Emrelis (Teliso-V) granted accelerated approval by the FDA for the treatment of locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC) with high c-Met protein overexpression.
Financial Guidance
The company raised its revenue and earnings per share guidance, indicating a strong outlook.
Revenue Growth
Continued strong performance of Skyrizi and Rinvoq drives growth in revenue and earnings per share.
Negative Factors
Pipeline Risk
A comparatively lighter late-stage pipeline and in therapeutic areas that may not scale to the current I&I franchise add risk to AbbVie’s relative safety positioning.
Policy Risk
A higher perceived policy risk than peers from PBM reform/MFN discounting adds risk to AbbVie’s relative safety positioning.
Product Performance
There is a concern about the lower performance of Humira and Aesthetics impacting results.
AbbVie (ABBV) vs. S&P 500 (SPY)
Market Cap
$332.08B
Dividend Yield3.39%
Average Volume (3M)9.13M
Price to Earnings (P/E)80.2
Beta (1Y)0.34
Revenue Growth5.45%
EPS Growth-30.21%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength39
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.46
Shares Outstanding1,766,403,100
10 Day Avg. Volume7,787,639
30 Day Avg. Volume9,130,405
Financial Highlights & Ratios
PEG Ratio-5.10
Price to Book (P/B)108.99
Price to Sales (P/S)0.00
P/FCF Ratio20.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$213.06Price Target Upside20.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
AbbVie Business Overview & Revenue Model
Company DescriptionAbbVie 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 MoneyAbbVie 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.65
Positive
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.58
Neutral
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.72
Positive
| 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
Negative
177.44
Price Trends
193.79
Negative
188.37
Negative
186.36
Negative
Market Momentum
-1.02
Positive
39.78
Neutral
32.99
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 177.44 is below the 20-day moving average (MA) of 185.09, below the 50-day MA of 193.79, and below the 200-day MA of 186.36, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 32.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABBV.
AbbVie Risk Analysis
AbbVie disclosed 29 risk factors in its most recent earnings report. AbbVie reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AbbVie Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $211.96B | 27.50 | 19.81% | 2.24% | 15.48% | 22.70% | |
76 Outperform | $192.42B | 11.16 | 39.31% | 4.12% | 4.40% | 654.93% | |
76 Outperform | $357.72B | 16.50 | 29.45% | 3.34% | -0.37% | 29.21% | |
70 Outperform | $147.74B | 25.08 | 105.67% | 3.38% | 15.59% | 56.99% | |
66 Neutral | $130.02B | 16.57 | 8.62% | 7.39% | 13.38% | ― | |
60 Neutral | $332.08B | 80.16 | 88.15% | 3.39% | 5.45% | -30.21% | |
52 Neutral | $5.14B | 3.39 | -43.55% | 2.83% | 16.49% | -0.19% |
* Healthcare Sector Average
Performance Comparison
ABBV
AbbVie
177.44
19.39
12.27%
AMGN
Amgen
262.28
-47.32
-15.28%
AZN
AstraZeneca
66.23
-9.22
-12.22%
JNJ
Johnson & Johnson
146.36
-1.56
-1.05%
MRK
Merck & Company
73.47
-54.47
-42.57%
PFE
Pfizer
22.02
-4.99
-18.47%
AbbVie Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: -1.62%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Ex-Humira platform and increased guidance, driven by growth in immunology and neuroscience. However, there were significant challenges in Humira and aesthetics sales, with competitive pressures impacting Imbruvica. Overall, the company shows strong momentum despite these challenges.Q1-2025 Updates
Positive Updates
Strong Ex-Humira Platform Performance
Ex-Humira platform delivered robust sales growth of more than 21%, with significant contributions from immunology, neuroscience, oncology, and anesthetics.
Increased Earnings and Revenue Guidance
Adjusted earnings per share guidance raised by $0.10 to between $12.09 and $12.29, with total net revenues of approximately $59.7 billion, an increase of $700 million.
Successful Launch and Growth in Immunology
Skyrizi and Rinvoq combined sales reached $5.1 billion, reflecting growth of more than 65%. Skyrizi achieved leading in-play share in ulcerative colitis in the US.
Neuroscience Revenue Growth
Neuroscience revenues grew by 17% on an operational basis, with VRAYLAR sales up 10.3% and migraine therapies delivering double-digit operational growth.
Oncology Segment Revenue Growth
Oncology revenues exceeded expectations with Venclexta global sales up 12.3% and emerging commercial portfolio in solid tumors showing promise.
Negative Updates
Humira Sales Decline
Global sales of Humira were $1.1 billion, down 49.5% on an operational basis due to faster share erosion from biosimilar competition.
Aesthetics Business Challenges
Global sales in aesthetics were $1.1 billion, down 10.2% on an operational basis, with BOTOX Cosmetic revenues down 10.7% and Juvederm sales down 20% due to economic headwinds.
Imbruvica Sales Decline
Imbruvica global sales were $738 million, down 11.9%, reflecting competitive dynamics in the CLL market.
Company Guidance
During the AbbVie First Quarter 2025 Earnings Conference Call, the company reported an adjusted earnings per share of $2.46, surpassing the guidance midpoint by $0.10. Total net revenues for the quarter exceeded $13.3 billion, outperforming expectations by nearly $550 million. Notably, the ex-Humira platform exhibited a sales growth of over 21%, with strong performances across therapeutic areas such as immunology, neuroscience, oncology, and anesthetics. This robust performance has led AbbVie to raise its full-year adjusted earnings per share guidance by $0.10, now projected to be between $12.09 and $12.29. The company also highlighted its plans to invest over $10 billion in U.S. capital over the next decade to support volume growth and expand into new areas like obesity. Additionally, AbbVie anticipates a high single-digit revenue compound annual growth rate through 2029, underscoring its strong long-term growth prospects.AbbVie Corporate Events
Executive/Board ChangesShareholder Meetings
AbbVie Expands Board, Appoints New Independent Director
Neutral
May 13, 2025
On May 9, 2025, AbbVie Inc. expanded its Board of Directors from fourteen to fifteen members, appointing Thomas J. Falk as an independent director and member of the Audit Committee. The Board also announced a future reduction to thirteen directors with the retirement of Richard A. Gonzalez and Glenn F. Tilton on July 1, 2025. Additionally, Robert A. Michael was elected to succeed Mr. Gonzalez as Chairman, with a revised compensation package reflecting his new role. During the 2025 Annual Meeting of Stockholders, several key votes were held, including the election of Class I directors and the ratification of Ernst & Young LLP as the independent accounting firm. However, proposals to amend the certificate of incorporation for voting changes were not approved.
The most recent analyst rating on (ABBV) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on AbbVie stock, see the ABBV Stock Forecast page.
Spark’s Take on ABBV Stock
According to Spark, TipRanks’ AI Analyst, ABBV is a Outperform.
AbbVie’s stock score reflects strong earnings performance and cash flow management, though concerns about financial leverage and equity stability persist. The technical indicators suggest stability, while high valuation levels raise caution. Positive earnings guidance and leadership changes support a favorable outlook despite competitive challenges.
To see Spark’s full report on ABBV stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.