AbbVieABBV

Is the price high or low right now, compared to what the market usually pays?

→At 72.1x earnings, the market is paying +284% more than ABBV's own 11-year median of 18.8x. Expectations are elevated, so more has to go right to justify the price.

What has the market paid for ABBV over the years?

→At 72.1x earnings, the market is paying +284% more than ABBV's own 11-year median of 18.8x. Expectations are elevated, so more has to go right to justify the price.

What cash return does the business throw off per dollar of market value?

4.0%FCF yield today

→At 4.0%, you get less cash per dollar of market value than the 11-year median of 11.4% - the market is charging more for the same cash.

Revenue: is the business selling more than it used to?

→Revenue reached $61.2B in 2025, compounding +2% a year since 2022 though the pace has cooled. The trailing twelve months are already running at $64.4B, ahead of the last full year.

Net income: how much of that revenue becomes profit?

→Net income was $4.2B in 2025, compounding -29% a year over three years. Earnings per share moved +68% over the last twelve months. Trailing twelve-month profit stands at $6.3B.

How fast is it growing, year by year?

+9%revenue growth, FY 2025

→In 2025 revenue grew +9% while earnings moved -1% - when the earnings line runs above revenue, each new dollar of sales is arriving more profitably.

Revenue per share: is your slice growing as fast as the company?

$34.50revenue per share, FY 2025

→Revenue per share reached $34.50 in 2025, compounding +2% a year - in line with ABBV's own +2%, so the share count is not distorting your slice. Free cash flow per share stands at $10.05.

Margins: of every $1 of sales, how much survives each cost layer?

→Operating margin compressed 7 points to 25% since 2022. After everything, 7 cents of each sales dollar reaches net profit. ABBV doesn't tag a gross-profit line in its filings, so the chart starts at operating margin.

Earnings quality: do the reported profits turn into real cash?

→Operating cash flow runs at 309% of reported profit, so the earnings are more than backed by cash - depreciation and other non-cash charges are understating what the business actually collects.

What does it earn on the money it uses?

→ROE of -129% on shareholders' capital (ROCE isn't meaningful for this business model).

How much of every sales dollar ends up as free cash?

→29 cents of every sales dollar became free cash in 2025, down 13 points since 2022.

What does staying competitive cost, per dollar of sales?

→The biggest claim on each sales dollar is capital spending, at 2% of revenue (stock compensation 2%). That share has risen since 2022, so the cost of competing is climbing.

When sales grow, do profits grow faster?

→Operating profit outgrew revenue in only 2 of the last 5 years. Costs are growing roughly in step with the business, so scale isn't yet paying for itself.

Does ABBV earn more on its capital than that capital costs?

→ABBV earns 16.6% on the capital it employs, comfortably above the 10% most investors treat as the cost of capital. It was 16.6% in 2022, so the trend is flat, and the pace is picking up.

Could it handle its debt if things went wrong?

→Debt of $62.5B sits against $6.6B of cash. Earnings cover interest 5.8 times - adequate, with less room than it looks in a downturn.

Is the company's own capital growing or shrinking?

→Shareholders' equity is negative at $-5.9B: liabilities exceed assets. Usually the mark of heavy buybacks or accumulated losses, and always worth understanding which.

How much goes back to shareholders - and how much leaks out as stock compensation?

→$12.6B returned last year against $955M of stock issued to employees - the returns outweigh the dilution 13.2-to-1.

How fast is your ownership being diluted - or concentrated?

→The count shrank 0.0% last year - buybacks are outrunning stock compensation.

Is the dividend cheque itself growing?

→Up from $4.61 to $6.57 per share over 5 years - the cheque keeps growing.

What does the payout earn you at each year's prices?

→At today's price the yield is 2.6%.

Can it actually afford the dividend?

→Stretched: 276% of profits and 65% of free cash flow go out as dividends - most of what the business generates, so a cut gets likelier in a bad year.

ABBV has issued or retired shares - did shareholders end up better off?

→ABBV issued +12% more shares from 2011 to 2025, but revenue per share still rose +212%. The dilution bought more growth than it cost existing holders.

How is ABBV's trend actually behaving right now?

→ABBV is in a clear uptrend. The price is above the band where recent trading settled, and that band is still rising underneath it, so the floor keeps moving up. It has held that side of the band for 66 sessions, so this is well established. The last two weeks have turned up, though the price is still below where it stood a month ago, so the recent push has not yet made back the month's ground.

Are the people running it buying or selling with their own money?

→No open-market buying, and $19M of selling across 3 months. Selling alone is a weak signal - much of it is pre-scheduled - but the absence of buying tells you no insider saw the price as a bargain.