AbbVie Inc (ABBV, Financial) is a renowned player in the drug manufacturing industry. As of July 27, 2023, the company's stock price stands at $149.04, marking a 5.03% gain for the day and a 13.61% increase over the past four weeks. With a market capitalization of $262.95 billion, AbbVie's financial performance and future potential can be evaluated using the GF Score, a comprehensive ranking system developed by GuruFocus. The GF Score, ranging from 0 to 100, is a reliable indicator of a stock's long-term performance potential, with higher scores suggesting better returns. AbbVie's GF Score is 88/100, indicating good outperformance potential.
Financial Strength Analysis
The Financial Strength Rank is a measure of a company's financial stability, considering factors such as interest coverage, debt to revenue ratio, and Altman Z score. AbbVie's Financial Strength Rank is 4/10, suggesting a moderate level of financial stability. The company's interest coverage of 7.55 and debt to revenue ratio of 1.09 indicate a manageable debt burden, while the Altman Z-Score of 1.95 suggests some financial risk.
Profitability Rank Analysis
The Profitability Rank assesses a company's profitability and its likelihood to remain profitable. Factors considered include Operating Margin, Piotroski F-Score, and the trend of the Operating Margin. AbbVie's Profitability Rank is 10/10, indicating high profitability and business stability. The company's operating margin of 29.73% and Piotroski F-Score of 7 further reinforce its strong profitability.
Growth Rank Analysis
The Growth Rank measures a company's growth in terms of revenue and profitability. AbbVie's Growth Rank is 10/10, suggesting robust revenue and profitability growth. The company's 5-year revenue growth rate of 13.70% and 3-year revenue growth rate of 13.40% further underscore its strong growth potential.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. AbbVie's GF Value Rank is 3/10, suggesting that the company's stock may be overvalued.
Momentum Rank Analysis
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. AbbVie's Momentum Rank is 5/10, indicating moderate stock price performance.
Competitive Analysis
AbbVie's main competitors in the drug manufacturing industry include Eli Lilly and Co (LLY, Financial), Pfizer Inc (PFE, Financial), and Merck & Co Inc (MRK, Financial). Eli Lilly and Co has a GF Score of 75, Pfizer Inc has a GF Score of 91, and Merck & Co Inc has a GF Score of 85. Compared to its competitors, AbbVie's GF Score of 88 suggests that it has good outperformance potential.
In conclusion, AbbVie Inc's strong GF Score, high profitability, and robust growth potential make it a promising investment. However, investors should also consider the company's moderate financial strength and momentum, as well as its potentially overvalued stock.
