AbbVie Inc. (ABBV) Stock Analysis

Analysis from 10-Q filed 2025-11-04. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 11.0%. FCF margin 31.8%. D/E -9.7x. Source: 10-Q filed 2025-11-04.

Metric	Value	Context
ROIC	11.0%	Near cost of capital
FCF Margin	31.8%	Strong cash generation
Debt/Equity	-9.7x	Conservative leverage

ROIC 11.0% — Top 25% of sector peers. FCF margin 31.8% — Top 5%.

Explore AbbVie Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ABBV: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: AbbVie Inc. earns 11.0% ROIC, Top 25% in Healthcare

ROIC TTM 11.0%, sector median -3.5%, Top 25%. DuPont: NOPAT margin 14.9% × asset turnover 0.5x. Gross margin 70.7%. Operating margin 24.4%. Source: 10-Q filed 2025-11-04.

Metric	ABBV	Rating	Context
Return on Invested Capital (ROIC)	11.0%	Adequate	Above sector median of -3.5%
Return on Equity (ROE)	-165.0%	Red flag	Moderate equity returns
Gross Margin	70.7%	Excellent	Strong pricing power
Operating Margin	24.4%	Excellent	Efficient operations

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Cash Flow: AbbVie Inc. generates $20.0B FCF at 31.8% margin, positive NaN/8 quarters

FCF TTM $20.0B. FCF margin 31.8%, Top 5%. OCF/Net income 5.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-04.

Metric	ABBV	Rating	Context
Free Cash Flow Margin	31.8%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$20.0B	Good	Positive cash generation
OCF/Net Income	5.9x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: AbbVie Inc. at -9.7x leverage

Debt/Equity -9.7x. Total debt $64.5B, cash & investments $9.4B. Source: 10-Q filed 2025-11-04.

Metric	ABBV	Rating	Context
Debt to Equity	-9.7x	Excellent	Conservative capital structure
Net Cash Position	$-55.1B	Warning	Net debt position

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Valuation: AbbVie Inc. trades at 105.0x earnings

P/E 105.0x. EV/Sales 6.9x. FCF yield 5.3%. Dividend yield 3.2%. Source: 10-Q filed 2025-11-04.

Metric	ABBV	Rating	Context
P/E Ratio	105.0x	Warning	Premium valuation
EV/Sales	6.9x	Adequate	Growth premium priced in
FCF Yield	5.3%	Good	Attractive cash return
Dividend Yield	3.2%	Adequate	Meaningful income

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Capital Allocation: AbbVie Inc. returns 3.6% shareholder yield

Total shareholder yield 3.6% (div 3.2% + buyback 0.4%). Capital returned $13.3B TTM. Source: 10-Q filed 2025-11-04.

Metric	ABBV	Rating	Context
Total Shareholder Yield	3.6%	Good	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$13.3B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	11.0%	Top 25%	-
Free Cash Flow Margin	31.8%	Top 5%	-
Gross Margin	70.7%	Top 50%	1.1x above
Operating Margin	24.4%	Top 25%	10.6x above
Return on Equity (ROE)	-165.0%	Top 25%	-
P/E Ratio	105.0x	N/A	-

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Financial Scorecard

Metric	ABBV	Rating	Sector Context
Return on Invested Capital (ROIC)	11.0%	Adequate	Top 25% of sector (median: -3.5%)
Free Cash Flow Margin	31.8%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	70.7%	Excellent	Top 50% of sector (median: 64.0%)
Debt to Equity Ratio	-969.5%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	105.0x	Warning	High expectations priced in
Free Cash Flow Yield	5.3%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is AbbVie Inc.'s Return on Invested Capital (ROIC)?

AbbVie Inc. (ABBV) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.0%. Sector median -3.5%. Source: 10-Q filed 2025-11-04.

Q: What is AbbVie Inc.'s Free Cash Flow Margin?

AbbVie Inc. (ABBV) has a free cash flow margin of 31.8%, generating $20.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-04.

Q: What is AbbVie Inc.'s P/E ratio and how does it compare to peers?

AbbVie Inc. (ABBV) trades at a P/E ratio of 105.0x, which is above the sector median of N/A. EV/Sales 6.9x. FCF yield 5.3%. Source: 10-Q filed 2025-11-04.

Q: Does AbbVie Inc. pay a dividend?

AbbVie Inc. (ABBV) currently pays a dividend yield of 3.2%. Total shareholder yield (dividend + buybacks) 3.6%. Source: 10-Q filed 2025-11-04.

Q: What is AbbVie Inc.'s revenue and earnings growth?

AbbVie Inc. (ABBV) grew revenue by 9.5% year-over-year. EPS -13.6% YoY. Source: 10-Q filed 2025-11-04.

Q: Is AbbVie Inc. buying back stock?

AbbVie Inc. (ABBV) repurchased $1.5 billion of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Source: 10-Q filed 2025-11-04.

Q: How does AbbVie Inc. compare to competitors in Healthcare?

Compared to other companies in Healthcare, AbbVie Inc. (ABBV) shows: ROIC 11.0%, sector median -3.5% (Top 25%). FCF margin 31.8%, sector median 0.0% (Top 5%). Gross margin 70.7%, 6.7pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with AbbVie Inc.?

No quantitative warning flags fired for AbbVie Inc. (ABBV) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-04.

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Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.