Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Abbott Laboratories

ABT · NYSE · Healthcare

Fundamental quality

REASONABLE

67

out of 100

Abbott Laboratories runs like a cash machine: it converts about 16.3% of revenue into free cash flow and holds a 13.9% net margin, though it grows at a measured pace. On fundamental quality it scores 67 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue +5.2%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Abbott is a diversified healthcare company. It sells medical devices (such as its glucose monitors), diagnostics, nutrition (infant formula, Ensure) and generic medicines. That diversity makes it steadier than a pure pharma company.

What will shape its future

  • The success of its medical devices, especially continuous glucose monitors for diabetics.
  • Its diversification: when one area is weak, another can offset it.
  • Exposure to emerging markets, where it sells a lot of nutrition and generics.

Breakdown by area

I.Growth
48

EPS growth: 7% · Revenue growth: 5.2%

II.Profitability
70

Net margin: 13.9% · ROE: 12.1% · ROIC: 7.5%

III.Financial health
70

Net debt/EBITDA: 2.97x · FCF: 16.3%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +4 for dividend strength: 54 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 63%
ROEbeats 41%
Growthbeats 25%
Cash generationbeats 57%
Less debtbeats 29%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Abbott Laboratories strengths

  • Strong free-cash-flow generation (FCF margin of 16.3%): profit turns into real cash.
  • Solid net margin (13.9%): the business is clearly profitable.
  • It has cut its net debt over the period.
  • Positive free cash flow year after year, a self-funding business.

Abbott Laboratories risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Abbott Laboratories historical evolution

YearRevenueNet incomeFree cash flowNet debt
202034,6084,4955,72411,696
202143,0757,0718,6488,251
202243,6536,9337,8046,891
202340,1095,7235,0597,783
202441,95013,4026,3516,509
202544,3286,5247,3954,407

Between 2020 and 2025, revenue went from $34,608M to $44,328M (+28%) and net income went from $4,495M to $6,524M (+45%). It has also reduced its net debt over the period.

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+7.8%
  • Net income-18.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.4

per share, yearly

63.1% of earnings

Payout

54 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Abbott Laboratories cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Abbott Laboratories a good company to invest in?

In terms of business quality, Abbott Laboratories scores 67 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Abbott Laboratories a profitable company?

Yes. Abbott Laboratories shows a net margin of 13.9% and an ROE of 12.1%, a sign of a profitable business.

Does Abbott Laboratories have a lot of debt?

A moderate level: its net debt is 2.97 times its EBITDA.

Is Abbott Laboratories growing?

Its revenue has grown 5.2% annualized in recent years and its earnings per share 7%.

Does Abbott Laboratories generate cash?

Yes. It converts about 16.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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