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AbbVie Inc
🇺🇸 ABBV · NYSE/NASDAQ · US00287Y1091
Healthcare
USD 249.90 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
70.2
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: 249.90 ÷ 3.56 = 70.2
TTM period through: 2026-06-30
Forward P/E (estimated): 17.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 70.5
Net Debt/EBITDA (TTM)
3.0x
Latest quarter: 7.4x
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: 2026-06-30
Latest quarter (2026-06-30): 7.4x
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
25.8x
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)
3.11%
TTM: 2.75%
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): 3.11%
Trailing Yield (TTM, last 12 months): 2.75%
Payout Ratio (Fwd)
194.2%
TTM: 275.8%
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): 194.2%
Payout (TTM): 275.8%
Cash Flow Payout (TTM): 61.4%
FCF Coverage (TTM): 1.64x
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 Jul 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 15 Apr 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 16 Jan 2027 | — | USD | 1.73 |
| Forecast* | Quarterly | — | 15 Oct 2026 | — | USD | 1.64 |
| Paid | 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
AbbVie is a premier biopharmaceutical leader successfully navigating its major patent transition with strong cash flow generation that safely covers its dividend. However, at its current valuation (17.6x Forward P/E) and sub-3% yield, the stock offers an unfavorable entry point given looming structural risks. Existing holders should maintain positions, but new capital should wait for a better margin of safety.
Sector Context
AbbVie operates in the global biopharmaceutical sector. For DGI investors, drug manufacturers offer robust cash flows and historically high dividend growth, but are structurally exposed to high-stakes patent expiration cycles (cliffs) and increasing government regulatory/pricing interventions (like the Inflation Reduction Act).
Temporary Opportunity Identified
The Q4 2024 GAAP net loss and heavily distorted TTM P/E of 70.21x are primarily driven by a one-time $3.5B non-cash intangible asset impairment charge related to emraclidine and acquired IPR&D expenses, masking healthy underlying revenue growth.
📊 Strategy Analysis
- • Excellent cash generation with Free Cash Flow covering the dividend by 1.64x (61.4% cash flow payout), entirely insulating the payout from GAAP earnings distortions.
- • Strong underlying business momentum, demonstrated by 5.6% Q4 revenue growth ($15.1B) driven by Skyrizi and Rinvoq, successfully offsetting Humira biosimilar competition.
- • Exceptional profitability profile with a 62.25% Return on Equity (ROE) and a robust 33% EBITDA margin despite the transition period.
⚠ What to Watch
- • Current valuation leaves limited margin of safety for new capital, trading at a Forward P/E of 17.6x with a forward dividend yield of 2.73%.
- • Significant long-term structural risks persist from impending patent cliffs (Imbruvica facing generic entry in 2027/2028) and escalating Medicare price negotiations (IRA selecting Botox).
- • Leverage remains slightly elevated, with Net Debt/EBITDA at 3.03x, limiting flexibility for future large-scale acquisitions.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.