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AbbVie Inc
🇺🇸 ABBV · NYSE/NASDAQ · US00287Y1091
Healthcare
USD 256.06 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
124.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 256.06 ÷ 2.05 = 124.8
TTM period through: 2026-03-31
Forward P/E (estimated): 17.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 128.0
Net Debt/EBITDA (TTM)
3.8x
Latest quarter: 17.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 17.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
62.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
30.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.70%
TTM: 2.68%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.70%
Trailing Yield (TTM, last 12 months): 2.68%
Payout Ratio (Fwd)
337.2%
TTM: 324.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 337.2%
Payout (TTM): 324.8%
Cash Flow Payout (TTM): 55.7%
FCF Coverage (TTM): 1.77x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
6.8%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Apr 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 16 Jan 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 15 Oct 2026 | — | USD | 1.64 |
| Declared | Quarterly | 18 Jun 2026 | 15 Jul 2026 | 14 Aug 2026 | USD | 1.73 |
| Paid | Quarterly | 19 Feb 2026 | 15 Apr 2026 | 15 May 2026 | USD | 1.73 |
| Paid | Quarterly | 31 Oct 2025 | 16 Jan 2026 | 17 Feb 2026 | USD | 1.73 |
| Paid | Quarterly | 05 Sep 2025 | 15 Oct 2025 | 14 Nov 2025 | USD | 1.64 |
| Paid | Quarterly | 20 Jun 2025 | 15 Jul 2025 | 15 Aug 2025 | USD | 1.64 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
AbbVie remains a premier biopharmaceutical leader with a pristine history of dividend growth and excellent cash flow generation that safely covers its payout. While a recent non-cash impairment charge artificially skewed trailing GAAP earnings, current valuation multiples (P/FFO > 22x) combined with a 2.68% yield offer limited margin of safety for new capital. Existing shareholders should maintain positions given the strong fundamentals, but new investors may want to wait for a better entry point.
Sector Context
AbbVie is a leading global biopharmaceutical company that discovers, develops, and markets drugs across immunology, oncology, aesthetics, and neuroscience. While healthcare is generally an essential sector with defensive characteristics, major drug manufacturers face unique structural risks including steep patent cliffs, generic/biosimilar competition, and increasing government pricing regulations.
Temporary Opportunity Identified
A GAAP net loss in late 2024 was driven by a massive $3.5 billion non-cash intangible asset impairment charge and acquired IPR&D expenses, temporarily distorting trailing P/E and EPS metrics without impacting core cash flows.
📊 Strategy Analysis
- • Robust cash flow generation comfortably covers the payout (Cash Flow Payout at 55.7%), supported by a recently declared 5.5% dividend increase.
- • Trailing GAAP metrics (P/E 124.8x) are artificially distorted by a temporary $3.5 billion non-cash impairment charge, masking solid underlying revenue growth and a more normalized Forward P/E of 17.6x.
- • The business transition away from historical Humira dependence continues to progress, driven by strong growth in next-generation immunology blockbusters.
⚠ What to Watch
- • Current valuation leaves limited margin of safety, trading at an elevated P/FFO of 22.29x with the dividend yield sitting at a sub-optimal 2.68%.
- • Net Debt/EBITDA of 3.75x exceeds the ideal <3x threshold, reflecting elevated leverage from historical acquisitions that requires ongoing monitoring.
- • Significant long-term structural risks persist from upcoming patent cliffs (Imbruvica in 2027/2028) and escalating Medicare price negotiations under the Inflation Reduction Act targeting key products like Botox.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.