Abbott Laboratories (ABT, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $117, Abbott Laboratories has witnessed a daily gain of 0.31%, marked against a three-month change of 15.81%. A thorough analysis, underlined by the GF Score, suggests that Abbott Laboratories is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Abbott Laboratories has been assigned a GF Score of 93 out of 100, which signals the highest outperformance potential. While the GF Value rank is moderate, the company's financial strength, profitability, and growth are highly rated, indicating a strong competitive position and potential for future growth.
Understanding Abbott Laboratories Business
Abbott Laboratories, with a market cap of $203.02 billion and sales of $40.11 billion, is a diversified healthcare giant. The company boasts an operating margin of 16.15% and has a broad portfolio that includes cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. With a global footprint, approximately 60% of Abbott Laboratories' sales are derived from international markets.
Financial Strength Breakdown
Abbott Laboratories's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The company's Interest Coverage ratio stands impressively at 10.17, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 5.27, Abbott Laboratories exhibits a strong defense against financial distress, highlighting its robust financial stability. The favorable Debt-to-Revenue ratio of 0.39 further solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank reflects Abbott Laboratories's impressive standing among its peers in generating profit. The company's Operating Margin has increased over the past five years, with a current margin of 16.15%. This trend is a testament to the company's efficient operations and strategic focus. Additionally, Abbott Laboratories's Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Abbott Laboratories is ranked highly in Growth, demonstrating a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 5.8%, which outperforms 55.83% of companies in the Medical Devices & Instruments industry. The robust increase in EBITDA over the past few years further accentuates the company's continued capability to drive growth.
Conclusion: A Strong Investment Prospect
Considering Abbott Laboratories's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with strong financial foundations, consistent profitability, and promising growth trajectories would find Abbott Laboratories an attractive option. For those looking to explore further, GuruFocus Premium members can find more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
