Abbott Laboratories Net Income jumped on 55.7% and Revenue increased on 4.3%
22 Jan 2020 • About Abbott Laboratories (
$ABT) • By InTwits
Abbott Laboratories reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is -0.5x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Abbott Laboratories's Revenue increased on 4.3%. During FY2015-FY2019 Revenue growth topped in FY2017 at 31.3% and was decelerating since that time.
Gross Margin showed almost no change in FY2019. During FY2015-FY2019 Gross Margin bottomed in FY2017 at 55.0% and was growing since that time. SG&A as a % of Revenue decreased slightly on 1.3 pp from 31.9% to 30.6% in FY2019.
Net Income margin increased on 3.8 pp from 7.7% to 11.6% in FY2019. During the last 5 years Net Income margin bottomed in FY2017 at 1.7% and was growing since that time.
Management team
Miles D White is a Abbott Laboratories's CEO. Miles D White is a founder and has spent 20 years with the company. Abbott Laboratories's CFO Brian B Yoor has spent 3 years with the company.
Financial and operational results
FY ended 30 Nov -0001
Abbott Laboratories ($ABT) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 20,405 | 20,853 | 27,390 | 30,578 | 31,904 | 4.3% |
| Gross Profit | 11,658 | 11,829 | 15,053 | 17,872 | 18,673 | 4.5% |
| SG&A | 6,785 | 6,672 | 9,117 | 9,744 | 9,765 | 0.2% |
| EBITDA | 4,339 | 4,703 | 5,659 | 6,960 | | |
| EBIT | | | | 3,650 | | |
| Interest expence | | | | 826 | | |
| Tax | | | | 539 | | |
| Net Income | 4,423 | 1,400 | 477 | 2,368 | 3,687 | 55.7% |
| Stock Based Compensation | | | | 477 | | |
Balance Sheet
|
|---|
| Cash | 5,001 | 18,620 | 9,407 | 3,844 | | |
| Accounts Receivable | | | | 5,182 | | |
| Inventory | | | | 3,796 | | |
| Accounts Payable | | | | 2,975 | | |
| Short Term Debt | 3,130 | 1,325 | 714 | 207 | | |
| Long Term Debt | 5,871 | 20,681 | 27,210 | 19,359 | | |
Cash flow
|
|---|
| Capex | 1,110 | 1,121 | 1,135 | 1,394 | | |
| Dividends | | | | 1,974 | | |
Ratios
|
|---|
| Revenue growth | 0.8% | 2.2% | 31.3% | 11.6% | 4.3% | |
| EBITDA growth | 4.6% | 8.4% | 20.3% | 23.0% | | |
|
|---|
| Gross Margin | 57.1% | 56.7% | 55.0% | 58.4% | 58.5% | 0.1% |
| EBITDA Margin | 21.3% | 22.6% | 20.7% | 22.8% | |
| EBIT Margin | | | | 11.9% | |
| SG&A, % of revenue | 33.3% | 32.0% | 33.3% | 31.9% | 30.6% | -1.3% |
| SBC, % of revenue | | | | 1.6% | |
| Net Income Margin | 21.7% | 6.7% | 1.7% | 7.7% | 11.6% | 3.8% |
| CAPEX, % of revenue | 5.4% | 5.4% | 4.1% | 4.6% | | |
|
|---|
| ROIC | 9.4% | 8.6% | 3.4% | 6.6% | | |
| ROE | 20.7% | 6.7% | 1.9% | 7.7% | | |
| Net Debt/EBITDA | 0.9x | 0.7x | 3.3x | 2.3x | |
| Interest coverage ratio (ICR) | | | | 4.4x | |
| Interest expence / Average debt | | | | 4.2% | | |
People
|
|---|
| Insider ownership | | | | 0.7% | | |
| Employees | | | | 103,000 | | |
| Revenue/Employee, th. $ | | | | 297 | | |
Peers in Health Care Equipment & Services
Below we provide Abbott Laboratories benchmarking against other companies in Health Care Equipment & Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caretech Hldgs ($CTH) | | 19.9% | 11.4% | 11.8% | 112.7% |
| Tristel ($TSTL) | 13.8% | 11.5% | 18.5% | 9.6% | |
| Omega Diagnostics Group ($ODX) | 4.4% | 5.3% | 11.8% | -4.9% | |
| Immunodiagnostic Systems Hldgs ($IDH) | -13.2% | -15.6% | 4.5% | -5.2% | |
| |
|---|
| Median (4 companies) | 7.5% | 8.4% | 10.8% | 2.4% | 112.7% |
|---|
| Abbott Laboratories ($ABT) | | 2.2% | 31.3% | 11.6% | 4.3% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tristel ($TSTL) | 69.5% | 73.4% | 77.3% | 77.3% | |
| Omega Diagnostics Group ($ODX) | 63.4% | 63.8% | 64.7% | 60.5% | |
| Immunodiagnostic Systems Hldgs ($IDH) | 62.5% | 58.6% | 57.4% | 47.5% | |
| Caretech Hldgs ($CTH) | 38.4% | 36.4% | 36.1% | 35.2% | 33.7% |
| |
|---|
| Median (4 companies) | 48.8% | 58.6% | 56.2% | 54.0% | 33.7% |
|---|
| Abbott Laboratories ($ABT) | 57.1% | 56.7% | 55.0% | 58.4% | 58.5% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tristel ($TSTL) | 22.9% | 20.7% | 25.4% | 24.7% | |
| Caretech Hldgs ($CTH) | 26.1% | 27.7% | 21.3% | 18.1% | 15.3% |
| Immunodiagnostic Systems Hldgs ($IDH) | 23.6% | -77.1% | 16.8% | 14.7% | |
| Omega Diagnostics Group ($ODX) | 11.4% | 10.2% | 8.6% | -45.5% | |
| |
|---|
| Median (4 companies) | 20.3% | 11.5% | 20.1% | 16.4% | 15.3% |
|---|
| Abbott Laboratories ($ABT) | 21.3% | 22.6% | 20.7% | 22.8% | |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caretech Hldgs ($CTH) | 4.8% | 7.2% | 9.6% | 7.8% | 7.0% |
| Immunodiagnostic Systems Hldgs ($IDH) | 6.3% | 4.7% | 3.7% | 4.6% | |
| Omega Diagnostics Group ($ODX) | 5.8% | 4.9% | 4.2% | 3.5% | |
| Tristel ($TSTL) | 3.2% | 2.9% | 2.9% | 2.3% | |
| |
|---|
| Median (4 companies) | 6.3% | 4.9% | 3.9% | 4.0% | 7.0% |
|---|
| Abbott Laboratories ($ABT) | 5.4% | 5.4% | 4.1% | 4.6% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tristel ($TSTL) | 20.1% | 17.5% | 24.9% | 23.1% | |
| Caretech Hldgs ($CTH) | 7.6% | 9.4% | 6.4% | 5.3% | 7.0% |
| Immunodiagnostic Systems Hldgs ($IDH) | 4.3% | -51.3% | 3.6% | 1.7% | |
| Omega Diagnostics Group ($ODX) | 3.6% | 3.3% | 2.9% | -33.6% | |
| Smith & Nephew ($SN.) | 11.1% | 14.4% | 15.8% | | |
| |
|---|
| Median (6 companies) | 5.9% | 2.0% | 6.7% | 3.5% | 7.0% |
|---|
| Abbott Laboratories ($ABT) | 9.4% | 8.6% | 3.4% | 6.6% | |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caretech Hldgs ($CTH) | 4.9x | 3.8x | 4.2x | 4.4x | 4.8x |
| Tristel ($TSTL) | -1.2x | -1.6x | -1.0x | -1.2x | |
| Immunodiagnostic Systems Hldgs ($IDH) | -2.1x | | -4.5x | -4.9x | |
| |
|---|
| Median (3 companies) | -1.0x | -0.6x | -0.7x | -1.2x | 4.8x |
|---|
| Abbott Laboratories ($ABT) | 0.9x | 0.7x | 3.3x | 2.3x | |
