AbbVie Inc (ABBV, Financial) is a renowned player in the Drug Manufacturers industry. As of July 20, 2023, the company's stock price stands at $140.66, marking a 2.16% gain for the day. Over the past four weeks, the stock has seen a 3.36% increase. With a market capitalization of $248.16 billion, AbbVie Inc is a significant player in its sector. This article will delve into the company's GF Score and what it implies for the company's future performance.
AbbVie Inc's GF Score Analysis
AbbVie Inc boasts a GF Score of 89 out of 100. The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. A higher GF Score generally indicates higher returns. With a score of 89, AbbVie Inc falls into the category of stocks with good outperformance potential. This score suggests that the company has a strong likelihood of outperforming the market in the future.
Financial Strength Analysis
The Financial Strength of a company is a measure of its financial situation. AbbVie Inc's Financial Strength Rank stands at 4 out of 10. This rank is determined by factors such as its interest coverage of 7.55, a debt to revenue ratio of 1.09, and an Altman Z score of 1.91. These figures suggest that the company has a moderate level of financial strength.
Profitability Rank Analysis
AbbVie Inc's Profitability Rank is an impressive 10 out of 10. This rank is based on factors such as its Operating Margin of 29.73%, a Piotroski F-Score of 7, and a consistent profitability of 10 years over the past decade. These figures indicate that the company is highly profitable and likely to remain so.
Growth Rank Analysis
The company's Growth Rank is also at the maximum of 10 out of 10. This rank is based on its 5-year revenue growth rate of 13.70%, a 3-year revenue growth rate of 13.40%, and a 5-year EBITDA growth rate of 19.90%. These figures suggest that AbbVie Inc has demonstrated strong growth in recent years.
GF Value Rank Analysis
AbbVie Inc's GF Value Rank is 5 out of 10. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. This score suggests that the company's valuation is fair.
Momentum Rank Analysis
The company's Momentum Rank is 4 out of 10. This rank is determined using the standardized momentum ratio and other momentum indicators. This score suggests that the company's stock price performance is moderate.
Competitive Analysis
When compared to its competitors in the same industry, AbbVie Inc holds its ground. Eli Lilly and Co (LLY, Financial) has a GF Score of 79, Pfizer Inc (PFE, Financial) has a GF Score of 87, and Merck & Co Inc (MRK, Financial) has a GF Score of 88. This comparison suggests that AbbVie Inc is competitively positioned within its industry.
In conclusion, AbbVie Inc's strong GF Score, along with its high profitability and growth ranks, suggest that the company has good potential for future performance. However, its moderate financial strength and momentum ranks indicate areas where the company could improve. Investors should consider these factors when making investment decisions.
