ABB Stock Analysis, Valuation (NYSE:ABB)
ABB Stock Analysis
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 3.3/5
Amigobulls ABB stock analysis relies on business fundamentals such as ABB revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 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?
- ABB had a healthy average operating margin of 10% over the last 4 quarters.
- Net margins stood at a healthy 6.4% (average) for ABB in the Trailing Twelve Months.
- The company has an operating cash flow which is 4.8 times the net income. We see this as a positive signal.
- The price to earnings multiple of 19.4 is attractive when compared with the industry average PE ratio of 23.
- ABB's return on invested capital of 12.7% is good.
- ABB has a good Return On Equity (ROE) of 15.2%.
- The company has a good Free Cash Flow (FCF) margin of 16.8%.
Should you sell ABB stock?
- Sales declined by -2.7% annually over the last 5 years.
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.