Quality Investor

Abbott Laboratories

Rank #318Capital Return

ABT · NYSE · Healthcare

Abbott Laboratories (ABT) — Rank #318 by gross profitability (GP/assets 0.23) · ROE 12.5% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000001800 · all metrics point-in-time as of the filing date.

About

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide.

Show more

It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915.

Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.

Industry
Medical Devices
Sector
Healthcare
State
IL
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
abbott.com

Price History

ABT-12.9% · -2.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$177.76B

P/E (annual)

27.4

P/S (annual)

4.0

P/B

3.4

P/OCF (annual)

18.6

Shareholder Yield

2.3%

Employees

122,000

Industry

Medical Devices

Exchange

NYSE

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.23
Return on equity
12.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.10
Current ratio
1.39×
Net cash
-$25.66B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.5%

Growth

2/2 pass
Revenue growth
5.7%
Piotroski F-Score
6 / 9
Share dilution
0.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.0% — per-share value needs a total required return of 10.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 5.1%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

5.8%

r = 10% (base)

10.3%

r = 12%

14.1%

Net debt / market cap: 14.4%

Base FCF: $7.4B3Y mean FCF: $6.3B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

30.2xFair
17.7xmed 38.7x282.0x

P / S

Price / revenue per share

4.4xCheap
4.3xmed 4.9x6.3x

P / B

Price / book value per share

3.8xCheap
3.8xmed 5.1x6.7x

P / GP

Price / gross profit per share

7.8xCheap
7.5xmed 8.7x11.2x

P / FCF

Price / free cash flow per share

26.5xCheap
24.1xmed 32.3x61.5x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.23

Primary signal (Novy-Marx).

8th of 9 SIC 2834 peers

Return on equity

12.5%

Gross margin

56.4%

8th of 9 SIC 2834 peers

Revenue growth (YoY)

5.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

0.5%

Revenue CAGR (5Y)

5.1%

Earnings CAGR (3Y)

-2.0%

FCF CAGR (3Y)

-1.8%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.10

7th of 9 SIC 2834 peers (best = lowest)

Current ratio

1.39×

8th of 9 SIC 2834 peers

Quick ratio

0.84×

Net cash

-$25.66B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$7.39B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.13

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.5%

Stock-based comp intensity.

Dividend safety

Composite score

2.8 / 5

Fair
Payout ratio
63.1%2/5 Fair
FCF coverage
1.80×3/5 Good
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 1.10 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Op. Leverage
Value
Decline