ABT
ABBOTT LABORATORIES
Healthcare • CIK: 0000001800
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Market Cap
$218.13B
P/E (TTM)
33.6x
Rev Growth (TTM)
+5.7%
Net Margin (TTM)
14.7%
FCF Yield (TTM)
3.4%
FCF Margin (TTM)
16.7%
Filing Intelligence
5.0/10
10-K filed Feb 20, 2026 • FY 2025
Executive Summary
Abbott faces substantial litigation risk related to infant formula, with over 1,700 lawsuits and significant jury awards, including a $495 million judgment.. Medical Devices segment sales grew 11.9%...
Key Concerns
- ●Gross margins improved due to efficiency initiatives, but higher costs and unfavorable foreign exchange present ongoing challenges.
- ●The Diagnostic Products segment continues to be impacted by the decline in COVID-19 testing sales and market challenges in China, affecting...
- ●Ongoing tax disputes with the IRS involving significant proposed adjustments.
Key Strengths
- ●Revenue growth in 2025 was primarily driven by the Medical Devices and Established Pharmaceutical Products segments, with strong...
- ●Operating cash flow shows a strong upward trend, benefiting from higher earnings and effective working capital management, supporting...
- ●The company is strategically investing in SG&A to drive growth across its businesses, particularly in sales and marketing efforts.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$7.4B
Q4 '25
$2.6B+15%
Q3 '25
$2.3B+48%
FCF Margin
TTM16.7%
Q4 '2522.9%+14%
Sector: 0.0%Top 10%
OCF Margin21.6%
OCF/NI1.47x
CapEx Coverage4.4x
FCF Yield3.4%
FCF Growth (2Y)-2%
Cash Conversion Cycle
189 days
DSO: 64+DIO: 126−DPO: 0
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM2.3%
Div Yield1.9%
+Buyback (TTM)0.4%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)1.9%
FCF Payout Ratio56.5%
Free Cash Flow (TTM)$7.4B
Stock Repurchases (TTM)$893.0M
Capital Return / FCF67.7%
Est. Dividends Paid (TTM)$4.2B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
9.8%
Volatile
-0.1% YoY-3.7%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.0%
8Q: 14.2%
Asset Turnover
0.53x
8Q: 0.54x
Leverage (1+D/E)
1.25x
D/E: 0.25x
DuPont: 9.3% ≈ 9.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.93x
8Q:3.98x
-9.3%
Invested Cap Turn
0.86x
8Q:0.85x
+9.0%
CapEx Intensity
4.2%
8Q:4.1%
CapEx/Depreciation
1.51x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $44.3B | $11.5B↑0.8% | $11.4B↑2.0% | $11.1B↑7.6% | $10.4B↓5.6% | $11.0B↑3.2% | $10.6B↑2.5% | $10.4B↑4.1% | $10.0B |
Operating Income | $8.1B | $2.3B↑9.4% | $2.1B↑0.2% | $2.1B↑21.2% | $1.7B↓11.4% | $1.9B↑2.8% | $1.9B↑11.4% | $1.7B↑20.4% | $1.4B |
Net Income | $6.5B | $1.8B↑12.5% | $1.6B↓11.1% | $1.8B↑38.5% | $1.3B↓85.9% | $9.2B↑475.0% | $1.6B↑23.1% | $1.3B↑8.3% | $1.2B |
Operating Cash Flow | $9.6B | $3.3B↑18.9% | $2.8B↑36.2% | $2.0B↑44.5% | $1.4B↓50.6% | $2.9B↑6.0% | $2.7B↑38.0% | $2.0B↑91.2% | $1.0B |
Free Cash Flow | $7.4B | $2.6B↑14.6% | $2.3B↑48.3% | $1.5B↑65.6% | $933.0M↓56.6% | $2.1B↓0.0% | $2.1B↑50.6% | $1.4B↑127.6% | $627.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
33.6x
Volatile
8Q: 136.9x-572%
High PEG ratio (5.9x) suggests expensive for growth
Valuation Lenses
Earnings
33.6x
vs – sector
Cash Flow
30.3x
EV/FCF vs –
Growth-Adj
5.9xPEG
Expensive for growth
Quality-Adj
3.4P/E per %ROIC
ROIC: 9.8%
Shareholder Returns
Dividend
1.9%
Buyback
0.4%
Total Yield
2.3%
Market Cap$218.13B
EV$223.84B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
56/100
Average
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
13.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
9.8%
8Q:–
-3.7%
vs Sector:-0.0%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 14.0%
Asset Turnover: 0.53x
Earnings Quality
Cash Conversion
1.47x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin56.4%
Capital Efficiency
Invested Capital Turnover0.86x
Working Capital
Cash Conversion Cycle189 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
55/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
5.7%
OpInc Growth YoY
17.8%
EPS Growth YoY
-51.2%
FCF 3Y CAGR
-1.8%
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
56.4%
Operating
18.2%
Top 25% in sector
Net
14.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+2.0 pts
FCF: 16.7% | Net: 14.7%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Solid
Net Debt / EBITDA
–Net Debt: $3.99B
Interest Coverage
–
Balance sheet risk & solvency analysis