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Abbott Laboratories
🇺🇸 ABT · NYSE/NASDAQ
Healthcare
Price at analysis: USD 104.78 Current price: USD 103.51 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
33.7
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: 104.78 ÷ 3.11 = 33.7
TTM period through: 2026-06-30
Forward P/E (estimated): 17.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 33.8
Net Debt/EBITDA (TTM)
2.4x
Latest quarter: 9.7x
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): 9.7x
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
10.6%
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
17.6x
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)
2.85%
TTM: 2.42%
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): 2.85%
Trailing Yield (TTM, last 12 months): 2.42%
Payout Ratio (Fwd)
81.1%
TTM: 78.5%
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): 81.1%
Payout (TTM): 78.5%
Cash Flow Payout (TTM): 43.0%
FCF Coverage (TTM): 2.05x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
10.4%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Oct 2027 | — | USD | 0.63 |
| Forecast* | Quarterly | — | 15 Jul 2027 | — | USD | 0.63 |
| Forecast* | Quarterly | — | 15 Apr 2027 | — | USD | 0.63 |
| Forecast* | Quarterly | — | 15 Jan 2027 | — | USD | 0.63 |
| Declared | Quarterly | 17 Sep 2026 | 15 Oct 2026 | 16 Nov 2026 | USD | 0.63 |
| Paid | Quarterly | 12 Jun 2026 | 15 Jul 2026 | 17 Aug 2026 | USD | 0.63 |
| Paid | Quarterly | 20 Feb 2026 | 15 Apr 2026 | 15 May 2026 | USD | 0.63 |
| Paid | Quarterly | 12 Dec 2025 | 15 Jan 2026 | 13 Feb 2026 | USD | 0.63 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Abbott Laboratories is an elite, diversified healthcare compounder fortified by deep competitive moats and pristine cash flow generation. Recent settlements mark a highly encouraging step toward resolving its infant formula litigation, but the stock trades at a massive premium (33.74x P/E) that offers zero margin of safety. Existing holders should maintain their positions, but the stock is currently in the WATCH quadrant for new capital until a better valuation materializes.
Sector Context
Abbott operates a diversified healthcare model across medical devices, diagnostics, nutrition, and international off-patent pharmaceuticals. For DGI investors, this structure provides highly defensive cash flows and structurally insulates the company from the massive U.S. 'patent cliffs' that plague pure-play biopharma peers.
Temporary Opportunity Identified
Massive infant formula product liability litigation (NEC and DOJ investigations) created a substantial legal overhang. Recent aggregate settlements exceeding $1 billion have significantly clarified the liability picture, though remaining state and federal lawsuits will take time to fully resolve.
📊 Strategy Analysis
- • Significant legal de-risking achieved via a $385M DOJ settlement regarding the Sturgis facility and a $670M settlement for the landmark Gill NEC case.
- • Pristine dividend safety with Free Cash Flow covering the dividend 2.05x and a conservative cash flow payout ratio of 43.02%.
- • Structural insulation from the Inflation Reduction Act's U.S. biopharma price negotiation penalties, owing to its diversified device/diagnostics model.
⚠ What to Watch
- • Severely elevated valuation with a TTM P/E of 33.74x, which completely detaches from the optimal 8-15x DGI target range.
- • Ongoing legal overhang from approximately 1,700 active state and federal NEC lawsuits (including 844 active cases in federal MDL 3026).
- • Modest forward dividend yield of 2.40% limits initial income generation potential for new capital allocations.
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.