0.74%
14.19%
12.55%
22.30%
13.51%
1.06%
44.47%

Company Description

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide.It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon.


The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories.The Nutritional Products segment provides pediatric and adult nutritional products.The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders.


Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

Market Data

Last Price 128.81
Change Percentage 0.74%
Open 127.99
Previous Close 127.86
Market Cap ( Millions) 223416
Volume 4757470
Year High 129.85
Year Low 99.71
M A 50 116.09
M A 200 111.03

Financial Ratios

FCF Yield 2.90%
Dividend Yield 1.74%
ROE 14.74%
Debt / Equity 37.64%
Net Debt / EBIDTA 69.00%
Price To Book 5.61
Price Earnings Ratio 38.74
Price To FCF 34.45
Price To sales 5.42
EV / EBITDA 21.46

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Medical Devices

Expected Growth : 5 %

What the company do ?

Abbott Laboratories' medical devices include pacemakers, implantable cardioverter-defibrillators, and neurostimulators for chronic pain management and movement disorders.

Why we expect these perspectives ?

Abbott Laboratories' Medical Devices segment growth is driven by increasing demand for minimally invasive treatments, expanding indications for existing products, and geographic expansion in emerging markets. Additionally, the company's focus on innovation, strategic acquisitions, and partnerships contribute to its growth momentum.

Segment n°2 -> Diagnostic Products

Expected Growth : 4 %

What the company do ?

Diagnostic Products from Abbott Laboratories provide innovative solutions for medical professionals to diagnose and monitor various health conditions, including infectious diseases, cancer, and cardiovascular diseases.

Why we expect these perspectives ?

Abbott's Diagnostic Products segment growth is driven by increasing demand for molecular diagnostics, expansion in emerging markets, and strategic acquisitions. The company's Alinity platform and rapid diagnostics tests for infectious diseases, such as COVID-19, are contributing to growth. Additionally, the segment benefits from a strong pipeline of new products and geographic expansion, particularly in Asia and Latin America.

Segment n°3 -> Nutritional Products

Expected Growth : 3 %

What the company do ?

Abbott Laboratories' nutritional products include Ensure, Pediasure, and Similac, offering a range of infant formulas, adult nutrition, and pediatric nutrition solutions.

Why we expect these perspectives ?

Abbott's Nutritional Products segment growth is driven by increasing demand for pediatric nutrition in emerging markets, particularly in Asia and Latin America. Additionally, the company's investments in e-commerce and digital marketing are expanding its online presence, while its product portfolio expansion into specialized nutrition and healthy living products is attracting a wider customer base.

Segment n°4 -> Established Pharmaceutical Products

Expected Growth : 7 %

What the company do ?

Established Pharmaceutical Products from Abbott Laboratories include branded generic medicines in therapeutic areas like neuroscience, gastroenterology, and primary care.

Why we expect these perspectives ?

Established Pharmaceutical Products from Abbott Laboratories with 7% growth driven by increasing demand for chronic disease treatments, expanding product portfolio through strategic acquisitions, and growing presence in emerging markets. Additionally, cost savings from operational efficiencies and favorable currency exchange rates contribute to growth.

Segment n°5 -> Other

Expected Growth : 5 %

What the company do ?

The 'Other' segment from Abbott Laboratories includes businesses that do not fit into its established reportable segments, such as its medical optics and Abbott Informatics businesses.

Why we expect these perspectives ?

Abbott's 'Other' segment, with 5% growth, is driven by increasing demand for established pharmaceuticals, expansion into emerging markets, and strategic partnerships. Additionally, the company's diversified portfolio and investments in R&D contribute to its growth momentum.

Abbott Laboratories Products

Product Range What is it ?
Nutritionals Abbott's nutrition business provides a range of science-based nutrition products to support healthy growth and development, from infancy to adulthood.
Diabetes Care Abbott's diabetes care business provides a range of glucose monitoring systems and other products to help people with diabetes manage their condition.
Established Pharmaceuticals Abbott's established pharmaceuticals business provides a range of branded generic pharmaceuticals to treat a variety of conditions, including pain, fever, and inflammation.
Cardiovascular and Neuromodulation Abbott's cardiovascular and neuromodulation business provides a range of products to treat cardiovascular and neurological conditions, including heart failure, atrial fibrillation, and chronic pain.
Electrophysiology Abbott's electrophysiology business provides a range of products to diagnose and treat heart rhythm disorders, including atrial fibrillation and ventricular tachycardia.
Structural Heart Abbott's structural heart business provides a range of products to treat structural heart conditions, including mitral regurgitation and aortic stenosis.
Vascular Abbott's vascular business provides a range of products to treat vascular conditions, including peripheral artery disease and carotid artery disease.
Point of Care Abbott's point of care business provides a range of diagnostic testing products to help healthcare professionals make informed decisions at the point of care.
Molecular Diagnostics Abbott's molecular diagnostics business provides a range of molecular diagnostic tests to help diagnose and monitor infectious diseases, including HIV, hepatitis, and influenza.
Informatics Abbott's informatics business provides a range of data management and analytics solutions to help healthcare professionals make informed decisions.

Abbott Laboratories's Porter Forces

Abbott Laboratories operates in a highly competitive industry, and there are many substitutes available for its products. However, the company's strong brand reputation and high-quality products help to mitigate the threat of substitutes.

Abbott Laboratories has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to patient care, making it difficult for customers to negotiate prices.

Abbott Laboratories relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly if they provide specialized or high-quality materials.

The pharmaceutical and medical device industries are heavily regulated, and new entrants face significant barriers to entry, including high research and development costs and stringent regulatory requirements.

The pharmaceutical and medical device industries are highly competitive, with many established players competing for market share. Abbott Laboratories faces intense competition from companies such as Johnson & Johnson, Medtronic, and Pfizer.

Capital Structure

Value
Debt Weight 27.88%
Debt Cost 4.67%
Equity Weight 72.12%
Equity Cost 7.60%
WACC 6.78%
Leverage 38.66%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
REGN Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular …
BSX Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company …
DXCM DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems …
SYK Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use …
JNJ Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
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WACC
Target Price
128.81$
Current Price
128.81$
Potential
-0.00%

Expected Cash-Flows

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Peers Group Analysis

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