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AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)
Rating:67Neutral
Price Target:
$201.00
▲(5.19%Upside)
Positive Factors
FDA 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.
Obesity Market Potential
The company sees significant upside in obesity due to the market size and low penetration rates, with potential backbone therapy through amylin.
Pipeline Development
ABBV's underappreciated mid-stage pipeline is expected to be ready for prime-time in the near future.
Negative Factors
Pipeline Opportunities
The late-stage pipeline comprises mostly label expansions that offer less opportunity than those already approved.
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.
AbbVie (ABBV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$339.89B
Dividend Yield3.43%
Average Volume (3M)6.21M
Price to Earnings (P/E)81.5
Beta (1Y)0.33
Revenue Growth5.45%
EPS Growth-30.21%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength59
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.46
Shares Outstanding1,766,403,100
10 Day Avg. Volume5,222,761
30 Day Avg. Volume6,211,252
Financial Highlights & Ratios
PEG Ratio9.22
Price to Book (P/B)16.59
Price to Sales (P/S)0.00
P/FCF Ratio11.80
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit7.66
Enterprise Value/Ebitda4.11
Forecast
1Y Price Target
$212.31Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
AbbVie Business Overview & Revenue Model
Company DescriptionAbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases; SKYRIZI to treat moderate to severe plaque psoriasis in adults; RINVOQ, a JAK inhibitor for the treatment of moderate to severe active rheumatoid arthritis in adult patients; IMBRUVICA to treat adult patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL), and VENCLEXTA, a BCL-2 inhibitor used to treat adults with CLL or SLL; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides CREON, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid used in the treatment of hypothyroidism; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; Lupron for the palliative treatment of advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; and Botox therapeutic. In addition, the company offers ORILISSA, a nonpeptide small molecule gonadotropin-releasing hormone antagonist for women with moderate to severe endometriosis pain; Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson's disease; Lumigan/Ganfort, a bimatoprost ophthalmic solution for the reduction of elevated intraocular pressure (IOP) in patients with open angle glaucoma (OAG) or ocular hypertension; Ubrelvy to treat migraine with or without aura in adults; Alphagan/ Combigan, an alpha-adrenergic receptor agonist for the reduction of IOP in patients with OAG; and Restasis, a calcineurin inhibitor immunosuppressant to increase tear production, as well as other eye care products. AbbVie Inc. has a research collaboration with Dragonfly Therapeutics, Inc. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.
How the Company Makes MoneyAbbVie generates revenue through the sale of its pharmaceutical products, with a significant portion coming from its best-selling drug, Humira, used in the treatment of rheumatoid arthritis and other autoimmune diseases. The company also earns income from other leading products such as Imbruvica, for oncology, and Mavyret, for hepatitis C treatment. AbbVie's revenue model is heavily reliant on its ability to innovate and bring new drugs to market, often through significant investments in research and development. Additionally, strategic acquisitions and partnerships enhance its portfolio and market reach, contributing to its earnings. The company also benefits from patent protections that provide exclusive marketing rights for its products, allowing it to maintain pricing power in the market.
AbbVie Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability for AbbVie, and where there might be opportunities or challenges.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability for AbbVie, and where there might be opportunities or challenges.
Data provided by:
Main Street Data
Main Street DataAbbVie Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 5.94%|
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 Financial Statement Overview
Summary
AbbVie shows strong operational profitability with a high gross profit margin and efficient cash flow generation, yet faces challenges with high leverage and limited revenue growth. The net profit margin is pressured, indicating potential financial risks if leverage is not managed effectively.Income Statement
AbbVie's income statement reflects strong gross profit margins and a consistent ability to generate EBIT from revenues, indicating operational efficiency. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 77.5%, and the EBIT margin is 28.3%, showcasing solid profitability. However, the net profit margin is relatively low at 7.3%, suggesting pressure on net income possibly due to high interest expenses or other non-operating costs. Revenue growth is modest, indicating stable but not rapid growth.75
Positive
Balance Sheet
The balance sheet reveals significant leverage with a debt-to-equity ratio of 49.2 in the TTM, indicating a high level of debt relative to equity, which could pose financial risk. Return on Equity (ROE) is weak at 295.4%, driven by low equity levels rather than high net income. The equity ratio is low at 1.0%, suggesting limited equity financing and high financial leverage.65
Positive
Cash Flow
AbbVie has a strong cash flow position with stable free cash flow generation. The operating cash flow to net income ratio is 3.91 in the TTM, indicating robust cash generation relative to net income. However, the free cash flow growth rate is negative at -13.7%, signifying a decline in free cash flow compared to the previous period, which could impact long-term cash sustainability.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 57.37B | 56.33B | 54.32B | 58.05B | 56.20B | 45.80B | Gross Profit |
| 44.44B | 39.43B | 33.90B | 40.64B | 38.75B | 30.42B | EBIT |
| 16.24B | 16.63B | 12.76B | 18.12B | 17.92B | 11.36B | EBITDA |
| 16.36B | 14.91B | 17.31B | 31.42B | 28.28B | 21.15B | Net Income Common Stockholders |
| 4.20B | 4.28B | 4.86B | 11.84B | 11.54B | 4.62B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.18B | 5.55B | 12.82B | 9.23B | 9.83B | 8.48B | Total Assets |
| 136.16B | 135.16B | 134.71B | 138.81B | 146.53B | 150.56B | Total Debt |
| 69.89B | 67.14B | 59.38B | 63.27B | 76.68B | 86.06B | Net Debt |
| 64.71B | 61.62B | 46.57B | 54.07B | 66.94B | 77.61B | Total Liabilities |
| 134.70B | 131.80B | 124.31B | 121.52B | 131.09B | 137.47B | Stockholders Equity |
| 1.42B | 3.33B | 10.36B | 17.25B | 15.41B | 13.08B |
| Cash Flow | Free Cash Flow | ||||
| 15.38B | 17.83B | 22.06B | 24.25B | 21.99B | 16.79B | Operating Cash Flow |
| 16.40B | 18.81B | 22.84B | 24.94B | 22.78B | 17.59B | Investing Cash Flow |
| -11.97B | -20.82B | -2.01B | -623.00M | -2.34B | -37.56B | Financing Cash Flow |
| -17.29B | -5.21B | -17.22B | -24.80B | -19.04B | -11.50B |
AbbVie Technical Analysis
Positive
191.08
Price Trends
184.82
Positive
191.10
Negative
186.40
Positive
Market Momentum
1.27
Negative
57.03
Neutral
82.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Positive. The current price of 191.08 is above the 20-day moving average (MA) of 186.76, above the 50-day MA of 184.82, and above the 200-day MA of 186.40, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $376.94B | 17.46 | 29.45% | 3.31% | -0.37% | 29.21% | |
77 Outperform | $231.85B | 29.68 | 19.81% | 2.82% | 15.48% | 22.70% | |
76 Outperform | $205.45B | 11.90 | 39.31% | 3.96% | 4.40% | 654.93% | |
75 Outperform | $158.74B | 26.95 | 105.67% | 3.22% | 15.59% | 56.99% | |
73 Outperform | $139.52B | 17.79 | 8.62% | 7.01% | 13.38% | ― | |
67 Neutral | $339.89B | 81.48 | 88.15% | 3.43% | 5.45% | -30.21% | |
54 Neutral | $5.38B | 3.27 | -45.10% | 3.30% | 16.81% | 0.02% |
* Healthcare Sector Average
Performance Comparison
ABBV
AbbVie
191.08
27.35
16.70%
AMGN
Amgen
295.22
1.42
0.48%
AZN
AstraZeneca
74.42
-3.33
-4.28%
JNJ
Johnson & Johnson
157.10
15.76
11.15%
MRK
Merck & Company
81.71
-42.86
-34.41%
PFE
Pfizer
24.54
-0.75
-2.97%
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.
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.