-1.84%
2.18%
3.23%
4.31%
34.39%
58.12%
120.69%

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

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

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.

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.

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.

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.

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%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
50.14$
Current Price
50.14$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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