Fundamental Analysis
About AbbVie
We’re a company that takes on the toughest health challenges. But we do more than treat diseases—we aim to make a remarkable impact on people’s lives. We are AbbVie, a highly focused research-driven biopharmaceutical company.
Reasons to buy – AbbVie
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see AbbVie makes a margin of 36% on Operating Level and about 35% on Net level. This means that out of $1 that it makes $0.35 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 21% in the revenue and the net profit figures grew by 62%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see AbbVie makes a Return on Assets of 16% and Return of Equity of 313% which is pretty good.
FDA approved cannabis based drug and other pharma product. I am not going to say anything more. Off course from our parameters the Debt/Equity is high, so that needs to be watched so that the debt doesn’t blow up.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by AbbVie to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
