Abbott Laboratories (ABT)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Abbott sells medical devices, diagnostics, nutrition, and established pharmaceuticals in many countries. That diversification is a real strength, but the financials are mixed. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $44.3B, net income of $6.5B, and diluted EPS of $3.72. That was down from fiscal 2024, when net income was $13.4B and diluted EPS $7.64, though revenue rose from $42.0B. So earnings are uneven, not a smooth compounder. In the latest filed quarter, fiscal Q1 2026 ended 2026-03-31, revenue was $11.2B, net income $1.1B, and diluted EPS $0.61. The margin was 9.65%, which is modest for a healthcare company. The balance sheet is not stretched, with debt-to-equity of 0.63, and free cash flow is $7.4B, a 4.1% FCF yield. But returns are only fair: ROE 10.58%, ROCE 5.33%. The Piotroski F-Score is 3/9, suggesting weak recent fundamental momentum. At the 2026-10-13 close of $102.61, the FairStock P/E is 33.21, P/B 3.47, and EV/EBITDA 17.40. Graham Number is $45.59, leaving a margin of safety of -125.07%, meaning price is far above conservative asset and earnings value. The Lynch category is Slow Grower, based on 7.7% profit growth and 5.1% revenue growth over five years. Abbott is a durable, diversified operator, but at this price the market is paying a premium for stability. I would want either better returns on capital or a lower price before calling it a bargain.

In plain English: Abbott makes and sells health care products, including medical devices, diagnostics, nutrition, and generic medicines, around the world. The business is large and profitable, but recent profits have been uneven and returns on capital look only modest. At the current price, the shares look expensive compared with the company's profits and net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer