ABB Stock Analysis, Valuation (NYSE:ABB)

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$22.09 $0.38 (1.69%) ABB stock closing price Jun 21, 2018 (Closing)

View the ABB stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for ABB stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ABB Ltd (ADR) Stock Rating 3/5

Amigobulls ABB stock analysis relies on business fundamentals such as ABB revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. ABB valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. ABB stock rating is our opinion about the business fundamentals of the company.

Should you buy ABB stock?

  • Net margins stood at a healthy 5.9% (average) for ABB in the Trailing Twelve Months.
  • The ABB stock currently trades at a price to earnings ratio of 17.6, compared to the sector average of 21.3. We rate this as a positive.
  • ABB's return on invested capital of 11.7 is good.

Should you sell ABB stock?

  • Revenue declined at a CAGR of -2.7 over the last 5 years.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative free cash flow margin of -8.5.

Comments on this video and ABB stock

Investors can use Amigobulls ABB stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of ABB stock and helps investors in making good buy and sell decision.

ABB revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.