$ABT (Abbott Laboratories)
Sector: Healthcare / Medical devices, diagnostics, nutrition and branded generic medicines in emerging markets.
Net profit (2024): around **$13.40 billion USD**.
Gross margin: ~55%.
Margen operativo (Operating Margin): ~16.3 %.
Margen neto (Net Profit Margin): ~32 %.
Liquidity / Debt: Debt/equity ratio ~0.21, debt/equity ~0.29.
Dividends: Pays dividends—total of $3.84 billion USD in payments in 2024.
ROA (Return on Assets): ~16.46 %.
P/E and P/B: Not found in the cited sources; would require updated consultation (Yahoo/MarketWatch etc.).
• Earnings: have fluctuated, highlighting that the net margin of ~32% in 2024 is above previous years (~13% in 2023).
• Margins have improved significantly in 2024, reflecting better cost control and more profitable segments.
• In comparison, ABT boasts higher net margins (~32%) and ROE (~28%) than many peers, making it one of the most efficient companies in the industry.
• Medtronic and Boston Scientific typically have net margins in the ~10–20% range (depending on the year and segment).
• Excellent profitability: net margins and ROE outstanding for the sector.
• Diversification between medical devices, diagnostics, nutrition and pharma.
• Financial strength: low debt/control and significant free cash generation (~$6.35 billion).
• Ability to distribute sustainable dividends.
Weaknesses/Risks
• Moderate revenue growth; lack of explosive growth.
• Segments such as nutrition or diagnostics could experience fluctuations (e.g. COVID-19 impact).
• It requires continuous innovation in the face of competitors with heavy investment in R&D and disruptive technology.
The content of this analysis is for informational purposes only and does not constitute any investment recommendation.
FUNDAMENTAL ANALYSIS: ABBOTT LABORATORIES (ABT)
1) COMPANY IDENTIFICATION
Ticker: ABT (NYSE)Sector: Healthcare / Medical devices, diagnostics, nutrition and branded generic medicines in emerging markets.
2) FINANCIAL STATEMENTS
Revenue (Fiscal Year 2024): approximately **$41.95 billion USD**.Net profit (2024): around **$13.40 billion USD**.
Gross margin: ~55%.
Margen operativo (Operating Margin): ~16.3 %.
Margen neto (Net Profit Margin): ~32 %.
Liquidity / Debt: Debt/equity ratio ~0.21, debt/equity ~0.29.
Dividends: Pays dividends—total of $3.84 billion USD in payments in 2024.
3) VALUATION AND PROFITABILITY RATIOS
ROE (Return on Equity): ~27.98 %.ROA (Return on Assets): ~16.46 %.
P/E and P/B: Not found in the cited sources; would require updated consultation (Yahoo/MarketWatch etc.).
4) GROWTH TRENDS (5 YEARS)
• Revenue: In 2019–2024, revenue has remained in the range of $40–44 billion USD, with moderate and consistent growth.• Earnings: have fluctuated, highlighting that the net margin of ~32% in 2024 is above previous years (~13% in 2023).
• Margins have improved significantly in 2024, reflecting better cost control and more profitable segments.
5) SECTOR COMPARISON
Competidores principales: *Medtronic plc*, *Boston Scientific*, *Johnson & Johnson*, *Becton Dickinson*, *Stryker*.• In comparison, ABT boasts higher net margins (~32%) and ROE (~28%) than many peers, making it one of the most efficient companies in the industry.
• Medtronic and Boston Scientific typically have net margins in the ~10–20% range (depending on the year and segment).
6) STRENGTHS AND WEAKNESSES
Strengths• Excellent profitability: net margins and ROE outstanding for the sector.
• Diversification between medical devices, diagnostics, nutrition and pharma.
• Financial strength: low debt/control and significant free cash generation (~$6.35 billion).
• Ability to distribute sustainable dividends.
Weaknesses/Risks
• Moderate revenue growth; lack of explosive growth.
• Segments such as nutrition or diagnostics could experience fluctuations (e.g. COVID-19 impact).
• It requires continuous innovation in the face of competitors with heavy investment in R&D and disruptive technology.
7) CONCLUSION (ASSESSMENT)
Abbott Laboratories displays very solid fundamentals: exceptional profitability and healthy balance sheets. Although organic revenue growth is moderate, margins and cash flow quality compensate for this lack of momentum. In the absence of concrete P/E and P/B ratios, the stock can be considered fairly or slightly undervalued, provided it maintains its operational discipline and competitive advantage in key segments.The content of this analysis is for informational purposes only and does not constitute any investment recommendation.