AI Spotlight on ABBN
Company Description
ABB Ltd engages in manufacture and sale of electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally.Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboard and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions.The company's Robotics & Discrete Automation segment offers industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services.
This segment also offers solutions based on its programmable logic controllers, industrial PCs, servo motion, transport system, and machine vision.Its Motion segment manufactures and sells drives, motors, generators, traction converters, and mechanical power transmission products that are driving the low-carbon future for industries, cities, infrastructure, and transportation.The company's Process Automation segment provides process and discrete control technologies, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation, marine propulsion systems, and large turbochargers.
In addition, this segment offers remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services.It serves aluminum, automotive, buildings and infrastructure, cement, channel partners, chemical, data centers, food and beverage, process automation, life sciences, marine and ports, metals, mining, oil and gas, ports, power generation, printing, pulp and paper, railway, smart cities, water, and wind power industries.The company was founded in 1883 and is headquartered in Zurich, Switzerland.
Market Data
Last Price | 50.14 |
Change Percentage | -1.84% |
Open | 51.86 |
Previous Close | 51.08 |
Market Cap ( Millions) | 92439 |
Volume | 5049772 |
Year High | 54 |
Year Low | 36.47 |
M A 50 | 50.42 |
M A 200 | 48.93 |
Financial Ratios
FCF Yield | 4.14% |
Dividend Yield | 1.74% |
ROE | 28.82% |
Debt / Equity | 54.47% |
Net Debt / EBIDTA | 74.11% |
Price To Book | 7.23 |
Price Earnings Ratio | 26.3 |
Price To FCF | 24.14 |
Price To sales | 3.13 |
EV / EBITDA | 17.83 |
News
- Jan -30 - ABB: Q4 Earnings Snapshot
- Nov -13 - European Space Agencyβs Harmony mission to rely on ABB infrared instruments
- Nov -06 - ABB India Ltd (BOM:500002) Q3 2024 Earnings Call Highlights: Strong Order Growth and Profit ...
- Nov -04 - ABB and Niedax Group announce completion of joint venture with the formation of Abnex, Inc.
- Oct -31 - ABB Underscores Focus on Electrification and Automation With New Brand Positioning and Tagline 'Engineered to Outrun'
- Oct -17 - Compared to Estimates, ABB (ABBNY) Q3 Earnings: A Look at Key Metrics
- Oct -17 - ABB: Q3 Earnings Snapshot
- Oct -17 - ABB Posts Higher Profit, Raises 2024 Margin Guidance
- Oct -16 - ABBβs Stuart Thompson Named Future of Field Service 2024 Stand Out 50 Winner
- Aug -14 - ABB Ltd (ABBNY): Leading the Industrial Robotics Revolution
- Jul -18 - Here's What Key Metrics Tell Us About ABB (ABBNY) Q2 Earnings
- Jul -18 - ABB Posts Higher Profit, Reaffirms Outlook
- Jul -16 - 5 High ROE Stocks to Buy as Low Inflation Fuels Rate Cut Hopes
- Jul -08 - ABB and NASCAR Reveal EV Prototype and Launch Electrification Innovation Partnership
- Jun -26 - ABBβs new Carlon fan-rated ceiling boxes raise the bar on home safety
- Jun -25 - ABB investing $35 million in new U.K. earthing and lightning protection factory
- Jun -13 - 5 Stocks With High ROE to Profit as Markets Hit Record Highs
- Jun -04 - April JOLTS data, Ford sales, E-Trade considers ban: Catalysts
- May -30 - Are Industrial Products Stocks Lagging ABB (ABBNY) This Year?
- May -10 - Stocks to watch this week: Burberry, Vodafone, BT and Walmart
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Electrification
Expected Growth : 2.8 %
What the company do ?
Electrification from ABB Ltd refers to the process of transitioning from fossil fuels to electricity as a primary energy source, enabling a more sustainable and efficient energy system.
Why we expect these perspectives ?
ABB's Electrification segment growth of 2.8% is driven by increasing demand for energy efficiency, rising adoption of electric vehicles, and growing need for renewable energy integration. Additionally, ABB's strong presence in industrial automation and its focus on digitalization and IoT solutions also contribute to the segment's growth.
Segment nΒ°2 -> Motion
Expected Growth : 2.5 %
What the company do ?
Motion from ABB Ltd is a modular automation platform for industrial motion control, providing scalable and flexible solutions for various industries.
Why we expect these perspectives ?
ABB Ltd's 2.5% growth is driven by increasing demand for industrial automation, electrification, and digitalization solutions. Strong order growth in robotics, motion, and electrification segments, coupled with a solid backlog and strategic acquisitions, contribute to this growth. Additionally, ABB's focus on operational excellence and cost savings initiatives support margin expansion.
Segment nΒ°3 -> Process Automation
Expected Growth : 3.2 %
What the company do ?
Process Automation from ABB Ltd enables industrial automation and digitalization of processes, optimizing efficiency, productivity, and safety in various industries.
Why we expect these perspectives ?
ABB Ltd's Process Automation segment growth of 3.2% is driven by increasing demand for industrial automation and digitalization, particularly in the oil and gas, chemicals, and mining industries. Additionally, the company's focus on IoT-enabled solutions, cybersecurity, and energy efficiency is contributing to its growth.
Segment nΒ°4 -> Robotics & Discrete Automation
Expected Growth : 3.5 %
What the company do ?
Robotics & Discrete Automation from ABB Ltd provides industrial robots, robotized machine tending, and material handling solutions for manufacturing and assembly processes.
Why we expect these perspectives ?
ABB's Robotics & Discrete Automation segment growth is driven by increasing demand for industrial automation, particularly in the automotive and electronics industries. The need for efficient production, quality improvement, and labor cost reduction fuels the adoption of robotics and automation solutions. Additionally, the growing trend of Industry 4.0 and investments in digitalization also contribute to the segment's 3.5% growth.
Segment nΒ°5 -> Corporate and Other
Expected Growth : 2.2 %
What the company do ?
Corporate and Other from ABB Ltd refers to the company's headquarters and other non-operational units that provide support functions, such as IT, HR, and finance.
Why we expect these perspectives ?
ABB Ltd's Corporate and Other segment growth of 2.2% is driven by increased investments in digitalization and electrification, coupled with cost savings initiatives and a favorable mix of higher-margin software and service sales. Additionally, the company's efforts to streamline operations and reduce overhead costs have contributed to the segment's growth.
Abb Ltd Products
Product Range | What is it ? |
---|---|
Electrification Products | ABB's Electrification Products segment offers a range of products and solutions for low-voltage and medium-voltage electrical installations, including circuit breakers, switches, and electrical distribution systems. |
Industrial Automation | ABB's Industrial Automation segment provides automation and electrification solutions for process and discrete industries, including control systems, drives, and robotics. |
Motion | ABB's Motion segment offers a range of products and solutions for motion control, including drives, motors, and generators. |
Robotics and Discrete Automation | ABB's Robotics and Discrete Automation segment provides robotic solutions for welding, painting, and material handling, as well as machine automation solutions. |
Power Grids | ABB's Power Grids segment offers a range of products and solutions for the transmission and distribution of electrical power, including high-voltage equipment and grid automation systems. |
ABB Ltd's Porter Forces
Threat Of Substitutes
ABB Ltd has a diverse product portfolio, which reduces the threat of substitutes. However, the increasing adoption of renewable energy sources and energy storage systems poses a moderate threat to ABB's traditional business.
Bargaining Power Of Customers
ABB Ltd has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, ABB's products and solutions are often customized, making it difficult for customers to switch to alternative suppliers.
Bargaining Power Of Suppliers
ABB Ltd has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. However, the company's reliance on a few key suppliers for critical components increases the bargaining power of these suppliers.
Threat Of New Entrants
The capital-intensive nature of ABB Ltd's business, combined with the need for significant research and development investments, creates a barrier to entry for new entrants.
Intensity Of Rivalry
The industrial automation and electrification markets are highly competitive, with several established players competing for market share. ABB Ltd faces intense competition from companies such as Siemens, Schneider Electric, and Rockwell Automation.
Capital Structure
Value | |
---|---|
Debt Weight | 39.47% |
Debt Cost | 3.95% |
Equity Weight | 60.53% |
Equity Cost | 8.86% |
WACC | 6.92% |
Leverage | 65.20% |
ABB Ltd : Quality Control
ABB Ltd passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
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