ABT

Abbott Laboratories

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Medical Devices

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/16/26

Business Summary

Abbott Laboratories generates cash by designing, manufacturing, and distributing medical devices and healthcare products that are embedded in routine patient care, creating recurring demand rather than one-off sales. Its scale allows it to spread R&D and regulatory costs across a broad revenue base, protecting margins. The company benefits from long product lifecycles and switching costs within hospital systems, which stabilize revenue and support consistent operating margins. Cash flow durability stems from diversified device platforms and global distribution that reduce reliance on any single product cycle.

VALUATION

P/E

27

Market Cap ($M USD)

$174,288

Forward P/E

16.4

PEG

2.5

PRICE TO SALES

4

PRICE TO BOOK

3.3

EV / EBITDA

14.8

5-Year Average P/E

DIVIDEND

Yield

2.40%

Annual Payout

$2.52

Payout Ratio

63.30%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

7.00%

Financial Health & Profitability

Earnings Per Share

$3.73

Next Year EPS Growth Estimate

$6.11

Next Year Revenue Growth Estimate

9.50%

Return on Equity (ROE)

12.50%

Operating Margin

18.20%

Debt-to-Equity

0.3

Piotroski F-Score

5

Altman Z-Score

4.8

Return on Invested Capital (ROIC)

10.40%%

Current Ratio

1.6

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 27x earnings with a Forward P/E of 16.4, the market is clearly discounting a material earnings normalization, yet the PEG Forward of 2.5 suggests that growth expectations are not cheap relative to that multiple compression. The Altman Z-Score of 4.8 signals very low bankruptcy risk, and a Debt/Equity ratio of 18.20% reinforces balance sheet stability, so this is not a financial distress story. With a $174,288M market cap and 12.50% operating margins, the company sits in the high-quality, moderate-growth bucket rather than deep value territory. The stock looks fairly valued to modestly undervalued if the forward earnings materialize, but it is not screaming mispricing given the premium PEG.

AI Exposure / Tech Reliance

As a Medical Devices company within Healthcare, Abbott is structurally aligned with AI-driven diagnostics, data-enabled monitoring, and automation in clinical workflows. The industry’s integration of connected devices and predictive analytics should support margin durability and incremental efficiency gains. Its scale and institutional ownership of $132.96 suggest it has the capital base to absorb and deploy emerging technologies rather than be disrupted by them.

The Bull Case

A GARP investor would be attracted to the combination of a 16.4 Forward P/E and a 10.40% ROIC, which indicates the company is generating returns above its cost of capital while trading at a reasonable forward multiple. The 12.50% operating margin and 9.50% ROE demonstrate steady profitability, not cyclical spikes, and the Piotroski F-Score of 5 reflects stable, if not elite, financial health. With a Current Ratio of 1.6 and low Debt/Equity at 18.20%, liquidity and leverage are well managed. The 2.40% dividend and 10+ five-year average dividend growth rate add a shareholder return component that compounds total return, making it attractive for institutions seeking durable compounding in Healthcare.

The Bear Case

The biggest red flag is the PEG Forward of 2.5, which implies investors are paying a premium relative to expected growth, limiting multiple expansion upside. A 7.00% short float is not trivial for a mega-cap Healthcare name, signaling that a meaningful minority is betting on operational or growth disappointments. The spread between a 27 P/E and 16.4 Forward P/E alongside EPS Next Year of $3.73 introduces earnings visibility questions, especially when paired with only 12.50% operating margins. While leverage is low, the Piotroski F-Score of 5 is merely average, suggesting no strong upward inflection in financial strength that would justify aggressive re-rating.

Market Sentiment & Smart Money

Short Interest %

1.30%

Analyst Consensus

1.5

Average Analyst Price Target

$132.96

Institutional Ownership %

82.00%

1-Year Beta

0.21

Insider Buying % (6 Mo)

0.50%%

Distance to 52-Week High

72.10%%

Distance to 52-Week Low

101.00%%