ABBVABBV
US • —
$251.64
P/E
122.82
PEG
—
FCF Yield
—
Rev Growth YoY
+9.5% YoY
Gross Margin
72.0%
Health Score
4/10
D/E Ratio
20.19
Confidence
LOW
Business Snapshot
AbbVie (ABBV) is a global pharmaceutical company known primarily for its immunology drug Humira (adalimumab), though its portfolio has expanded to include newer therapies such as Skyrizi and Rinvoq. The company operates in the highly competitive biopharmaceutical market and remains a dominant player in immunology, oncology, and neuroscience. The market capitalisation is not available from the current data, so a precise size tier cannot be confirmed, but based on its industry stature, it is generally considered a large-cap entity. A defining characteristic of AbbVie is its heavy reliance on large-selling biologic drugs that face patent cliffs, creating both high profitability and significant pipeline risk.
Financial Health
Gross margin stands at 72.0%, reflecting solid pricing power in its branded pharmaceutical portfolio, while the net margin of 5.8% is relatively thin for a biopharma company and appears to be compressed by high operating costs or amortisation. The debt/equity ratio of 20.19x is extremely high, indicating substantial leverage that limits financial flexibility and raises refinancing risk...
Risk Assessment
- VALUATION — P/E of 122.82x is massively elevated versus the sector average of 22x, pricing in exceptional future performance.
- DEBT / LIQUIDITY — Debt/equity of 20.19x is extremely high, indicating significant financial leverage and potential vulnerability to rising interest rates.
- EARNINGS QUALITY — Earnings declined 13.5% year-over-year, which contrasts with the high valuation multiple and raises questions about earnings sustainability.
- LIQUIDITY — Current ratio of 0.67x is below the 1.0x threshold, suggesting potential difficulty meeting short-term liabilities.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 72.0%, reflecting solid pricing power in its branded pharmaceutical portfolio, while the net margin of 5.8% is relatively thin for a biopharma company and appears to be compressed by high operating costs or amortisation. The debt/equity ratio of 20.19x is extremely high, indicating substantial leverage that limits financial flexibility and raises refinancing risk. The current ratio of 0.67x suggests the company may struggle to cover short-term obligations with current assets, pointing to liquidity tightness. Free cash flow data is not available in this payload, preventing a direct assessment of cash generation capacity or dividend coverage. Overall, the balance sheet is stretched and could be a constraint on share buybacks, dividend growth, or aggressive reinvestment.
- VALUATION — P/E of 122.82x is massively elevated versus the sector average of 22x, pricing in exceptional future performance. - DEBT / LIQUIDITY — Debt/equity of 20.19x is extremely high, indicating significant financial leverage and potential vulnerability to rising interest rates. - EARNINGS QUALITY — Earnings declined 13.5% year-over-year, which contrasts with the high valuation multiple and raises questions about earnings sustainability. - LIQUIDITY — Current ratio of 0.67x is below the 1.0x threshold, suggesting potential difficulty meeting short-term liabilities. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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