ABBV

AbbVie

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

AbbVie generates cash by developing and commercializing branded pharmaceutical therapies, relying on patent-protected drugs to command premium pricing. Its moat is rooted in intellectual property, regulatory barriers, and deep relationships across healthcare systems. High switching costs for established therapies and long development cycles create structural insulation from rapid competitive entry. The model is capital intensive but, when executed well, converts protected drug franchises into durable cash flow streams that fund dividends and future pipeline expansion.

VALUATION

P/E

87.7

Market Cap ($M USD)

$367,796

Forward P/E

12.9

PEG

1.1

PRICE TO SALES

6

PRICE TO BOOK

-

EV / EBITDA

24.4

5-Year Average P/E

DIVIDEND

Yield

3.20%

Annual Payout

$6.92

Payout Ratio

276.80%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

5.90%

Financial Health & Profitability

Earnings Per Share

$2.37

Next Year EPS Growth Estimate

$16.11

Next Year Revenue Growth Estimate

8.10%

Return on Equity (ROE)

-128.00%

Operating Margin

32.90%

Debt-to-Equity

-

Piotroski F-Score

6

Altman Z-Score

2.3

Return on Invested Capital (ROIC)

8.70%%

Current Ratio

0.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

AbbVie is priced like a controversy rather than a collapse. A trailing P/E of 87.7 against a Forward P/E of 12.9 signals a dramatic earnings normalization event, which the market appears to be discounting heavily. With a PEG Forward of 1.1, the stock is trading close to growth-adjusted fair value rather than at a speculative premium. However, an Altman Z-Score of 2.3 places it in the gray zone of financial stability, not distress but far from fortress-grade safety. This is a transition story: expensive on the surface, potentially inexpensive if forward earnings materialize as expected.

AI Exposure / Tech Reliance

As a Drug Manufacturer - General player in Healthcare, AbbVie operates in an industry where AI is increasingly embedded in drug discovery, clinical trial optimization, and pipeline acceleration. Companies that leverage AI effectively can compress development timelines and improve capital efficiency. AbbVie’s ability to modernize R&D execution will be critical in protecting margins and sustaining growth against biotech-native competitors.

The Bull Case

A GARP investor could justify ownership based on capital efficiency and improving forward optics. ROIC at 8.70% and Return on Equity at 8.10% show the business still generates positive returns on invested capital despite volatility. A Piotroski F-Score of 6 suggests reasonable financial stability and operational consistency, not pristine but solid. The dramatic compression from a P/E of 87.7 to a Forward P/E of 12.9 implies earnings normalization that, if achieved, makes current pricing compelling. Add in a Dividend Per Share of 3.20% with a 5-year average growth rate of 10+, and you have a shareholder return profile that institutions tend to support, reinforced by 5.90% short interest that is not excessively bearish.

The Bear Case

The red flags are not subtle. Operating Margin at -128.00% is deeply concerning and implies severe income statement distortion or structural pressure. Debt/Equity at 32.90% combined with a weak Current Ratio of 0.7 signals balance sheet tightness, limiting flexibility. The Altman Z-Score of 2.3 reinforces this fragility, while a Short % of Float at 5.90% shows a meaningful cohort betting against stability. If forward earnings disappoint, that 12.9 Forward P/E quickly becomes a value trap rather than a bargain.

Market Sentiment & Smart Money

Short Interest %

1.60%

Analyst Consensus

1.82

Average Analyst Price Target

$249.46

Institutional Ownership %

76.40%

1-Year Beta

0.45

Insider Buying % (6 Mo)

0.10%%

Distance to 52-Week High

84.90%%

Distance to 52-Week Low

123.40%%