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ABB

DB:ABJ
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABJ
DB
CHF41B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. The last earnings update was 62 days ago. More info.


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ABJ Share Price and Events
7 Day Returns
0%
DB:ABJ
2.5%
DE Electrical
-0.6%
DE Market
1 Year Returns
-13.7%
DB:ABJ
21.1%
DE Electrical
-5.5%
DE Market
ABJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ABB (ABJ) 0% 0% -0.2% -13.7% -13% -1.1%
DE Electrical 2.5% 8.9% 15.8% 21.1% -30.8% -6.5%
DE Market -0.6% 4.9% 0.9% -5.5% 7.9% 14.2%
1 Year Return vs Industry and Market
  • ABJ underperformed the Electrical industry which returned 21.1% over the past year.
  • ABJ underperformed the Market in Germany which returned -5.5% over the past year.
Price Volatility
ABJ
Industry
5yr Volatility vs Market

ABJ Value

 Is ABB undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ABB to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ABB.

DB:ABJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ABJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.171 (1 + (1- 18%) (27.59%))
1.292
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.292 * 5.96%)
7.93%

Discounted Cash Flow Calculation for DB:ABJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ABB is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:ABJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.93%)
2020 2,034.14 Analyst x9 1,884.74
2021 2,471.12 Analyst x9 2,121.47
2022 2,781.70 Est @ 12.57% 2,212.71
2023 3,028.33 Est @ 8.87% 2,231.98
2024 3,218.35 Est @ 6.27% 2,197.82
2025 3,361.92 Est @ 4.46% 2,127.24
2026 3,469.19 Est @ 3.19% 2,033.90
2027 3,549.06 Est @ 2.3% 1,927.91
2028 3,608.68 Est @ 1.68% 1,816.32
2029 3,653.58 Est @ 1.24% 1,703.86
Present value of next 10 years cash flows $20,257.00
DB:ABJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,653.58 × (1 + 0.23%) ÷ (7.93% – 0.23%)
$47,566.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $47,566.16 ÷ (1 + 7.93%)10
$22,182.73
DB:ABJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20,257.00 + $22,182.73
$42,439.73
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $42,439.73 / 2,132.82
$19.9
DB:ABJ Discount to Share Price
Calculation Result
Exchange Rate USD/CHF
(Reporting currency to currency of SWX:ABBN)
0.99
Value per Share
(CHF)
= Value per Share in USD x Exchange Rate (USD/CHF)
= $19.9 x 0.99
CHF19.7
Non-primary Listing Adjustment Factor 1 share in DB:ABJ represents 0.91386x of SWX:ABBN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91386x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CHF) x Listing Adjustment Factor
= CHF 19.70 x 0.91386
€18.00
Value per share (EUR) From above. €18.00
Current discount Discount to share price of €17.51
= -1 x (€17.51 - €18.00) / €18.00
2.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ABB is available for.
Intrinsic value
3%
Share price is €17.51 vs Future cash flow value of €18
Current Discount Checks
For ABB to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ABB's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • ABB's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ABB's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ABB's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ABJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.41
SWX:ABBN Share Price ** SWX (2019-06-28) in CHF CHF19.16
SWX:ABBN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 1.01 $19.35
Germany Electrical Industry PE Ratio Median Figure of 11 Publicly-Listed Electrical Companies 58.93x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 20.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ABB.

DB:ABJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:ABBN Share Price ÷ EPS (both in USD)

= 19.35 ÷ 0.41

46.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ABB is good value based on earnings compared to the DE Electrical industry average.
  • ABB is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does ABB's expected growth come at a high price?
Raw Data
DB:ABJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
30.5%per year
Germany Electrical Industry PEG Ratio Median Figure of 8 Publicly-Listed Electrical Companies 1.95x
Germany Market PEG Ratio Median Figure of 266 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

DB:ABJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.66x ÷ 30.5%

1.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ABB is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ABB's assets?
Raw Data
DB:ABJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $6.05
SWX:ABBN Share Price * SWX (2019-06-28) in CHF CHF19.16
SWX:ABBN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 1.01 $19.35
Germany Electrical Industry PB Ratio Median Figure of 16 Publicly-Listed Electrical Companies 2.14x
Germany Market PB Ratio Median Figure of 596 Publicly-Listed Companies 1.72x
DB:ABJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:ABBN Share Price ÷ Book Value per Share (both in USD)

= 19.35 ÷ 6.05

3.2x

* Primary Listing of ABB.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ABB is overvalued based on assets compared to the DE Electrical industry average.
X
Value checks
We assess ABB's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. ABB has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ABJ Future Performance

 How is ABB expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ABB expected to grow at an attractive rate?
  • ABB's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ABB's earnings growth is expected to exceed the Germany market average.
  • ABB's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ABJ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ABJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 30.5%
DB:ABJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 2.3%
Germany Electrical Industry Earnings Growth Rate Market Cap Weighted Average 75%
Germany Electrical Industry Revenue Growth Rate Market Cap Weighted Average 14.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ABJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ABJ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,567 1
2022-12-31 30,739 2,652 2
2021-12-31 30,097 3,520 2,486 20
2020-12-31 29,308 2,983 2,255 22
2019-12-31 28,621 2,298 1,272 18
2019-09-25
DB:ABJ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 28,508 2,176 884
2019-03-31 28,068 3,186 1,450
2018-12-31 27,662 2,924 1,450
2018-09-30 22,593 2,926 1,018
2018-06-30 22,060 3,315 991
2018-03-31 23,783 2,772 1,027
2017-12-31 25,196 3,799 1,367
2017-09-30 34,025 3,358 2,249
2017-06-30 33,556 3,485 2,225
2017-03-31 33,779 4,100 2,108
2016-12-31 24,929 3,843 1,100
2016-09-30 34,077 4,409 1,663

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ABB's earnings are expected to grow significantly at over 20% yearly.
  • ABB's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ABJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from ABB Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ABJ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.24 1.24 1.24 1.00
2021-12-31 1.28 1.47 1.09 12.00
2020-12-31 1.24 2.67 0.82 13.00
2019-12-31 0.56 0.70 0.39 10.00
2019-09-25
DB:ABJ Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.41
2019-03-31 0.68
2018-12-31 0.68
2018-09-30 0.48
2018-06-30 0.46
2018-03-31 0.48
2017-12-31 0.64
2017-09-30 1.05
2017-06-30 1.04
2017-03-31 0.98
2016-12-31 0.51
2016-09-30 0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ABB is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ABB's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ABB has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ABJ Past Performance

  How has ABB performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ABB's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ABB's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • ABB's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ABB's 1-year earnings growth is negative, it can't be compared to the DE Electrical industry average.
Earnings and Revenue History
ABB's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ABB Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ABJ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 28,508.00 884.00 5,422.00 1,180.00
2019-03-31 28,068.00 1,450.00 5,241.00 1,154.00
2018-12-31 27,662.00 1,450.00 5,137.00 1,142.00
2018-09-30 22,593.00 1,018.00 4,618.00 924.00
2018-06-30 22,060.00 991.00 4,491.00 954.00
2018-03-31 23,783.00 1,027.00 4,672.00 1,000.00
2017-12-31 25,196.00 1,367.00 4,757.00 1,018.00
2017-09-30 34,025.00 2,249.00 5,337.00 1,329.00
2017-06-30 33,556.00 2,225.00 5,233.00 1,277.00
2017-03-31 33,779.00 2,108.00 5,164.00 1,291.00
2016-12-31 24,929.00 1,100.00 4,531.00 961.00
2016-09-30 34,077.00 1,663.00 5,234.00 1,318.00
2016-06-30 34,341.00 1,688.00 5,244.00 1,330.00
2016-03-31 34,829.00 1,871.00 5,307.00 1,343.00
2015-12-31 35,481.00 1,930.00 5,387.00 1,368.00
2015-09-30 36,585.00 2,393.00 5,487.00 1,381.00
2015-06-30 37,889.00 2,538.00 5,672.00 1,420.00
2015-03-31 38,914.00 2,585.00 5,869.00 1,464.00
2014-12-31 39,830.00 2,570.00 6,067.00 1,499.00
2014-09-30 40,857.00 2,451.00 6,240.00 1,527.00
2014-06-30 41,569.00 2,567.00 6,228.00 1,521.00
2014-03-31 41,604.00 2,701.00 6,152.00 1,474.00
2013-12-31 41,848.00 2,824.00 6,094.00 1,470.00
2013-09-30 41,496.00 2,881.00 6,000.00 1,445.00
2013-06-30 40,706.00 2,803.00 5,917.00 1,452.00
2013-03-31 40,144.00 2,683.00 5,883.00 1,479.00
2012-12-31 39,336.00 2,700.00 5,756.00 1,464.00
2012-09-30 38,886.00 2,918.00 5,617.00 1,473.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ABB has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ABB used its assets less efficiently than the DE Electrical industry average last year based on Return on Assets.
  • ABB's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ABB's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ABB has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ABJ Health

 How is ABB's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ABB's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ABB is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ABB's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ABB's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ABB Company Filings, last reported 2 months ago.

DB:ABJ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 13,383.00 10,161.00 3,228.00
2019-03-31 15,102.00 8,336.00 3,567.00
2018-12-31 14,534.00 8,468.00 4,157.00
2018-09-30 14,649.00 9,327.00 3,557.00
2018-06-30 14,179.00 10,245.00 4,082.00
2018-03-31 13,944.00 7,573.00 4,902.00
2017-12-31 15,349.00 7,267.00 5,609.00
2017-09-30 14,753.00 7,738.00 4,648.00
2017-06-30 13,884.00 7,679.00 5,929.00
2017-03-31 14,935.00 6,789.00 6,788.00
2016-12-31 13,897.00 6,689.00 5,599.00
2016-09-30 13,913.00 7,721.00 5,365.00
2016-06-30 13,159.00 7,894.00 6,359.00
2016-03-31 15,367.00 7,692.00 6,065.00
2015-12-31 14,988.00 7,317.00 6,204.00
2015-09-30 15,225.00 7,557.00 5,234.00
2015-06-30 15,006.00 7,988.00 5,187.00
2015-03-31 16,282.00 7,709.00 6,155.00
2014-12-31 16,815.00 7,665.00 6,768.00
2014-09-30 17,654.00 7,871.00 6,216.00
2014-06-30 18,167.00 8,827.00 5,912.00
2014-03-31 19,706.00 9,050.00 7,267.00
2013-12-31 19,208.00 8,023.00 6,485.00
2013-09-30 18,084.00 8,123.00 4,676.00
2013-06-30 16,752.00 8,134.00 4,691.00
2013-03-31 17,741.00 9,118.00 7,052.00
2012-12-31 17,446.00 10,073.00 8,496.00
2012-09-30 17,135.00 9,078.00 5,446.00
  • ABB's level of debt (75.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (48.5% vs 75.9% today).
  • Debt is well covered by operating cash flow (21.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.5x coverage).
X
Financial health checks
We assess ABB's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ABB has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ABJ Dividends

 What is ABB's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.04%
Current annual income from ABB dividends. Estimated to be 4.33% next year.
If you bought €2,000 of ABB shares you are expected to receive €81 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ABB's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.4%).
  • ABB's dividend is above the markets top 25% of dividend payers in Germany (3.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ABJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
Germany Electrical Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ABJ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.86 1.00
2022-12-31 0.89 2.00
2021-12-31 0.86 15.00
2020-12-31 0.83 18.00
2019-12-31 0.82 17.00
2019-09-25
DB:ABJ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 0.783 4.222
2018-03-29 0.763 3.708
2017-04-13 0.753 3.146
2016-04-21 0.717 3.458
2015-02-05 0.699 3.806
2014-02-13 0.687 3.342
2013-02-14 0.694 3.151
2012-05-02 0.654 3.770
2011-03-17 0.642 3.044
2011-02-17 0.642 2.712
2010-03-19 0.493 2.422
2010-02-18 0.493 2.386
2009-03-10 0.450 2.586
2009-02-13 0.450 3.756

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ABB's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess ABB's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ABB afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ABB has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ABJ Management

 What is the CEO of ABB's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Voser
COMPENSATION $0
AGE 61
TENURE AS CEO 0.4 years
CEO Bio

Mr. Peter Robert Voser has been Chief Executive Officer of ABB Ltd. since April 2019 and has been its Chairman since April 2015. Mr. Voser served as Interim Chief Executive Officer of ABB Ltd. since April 17, 2019 until April 2019 and served as its President until April 2019. Prior to this, Mr. Voser was CEO of Royal Dutch Shell from 2009 to 2013, and CFO and Executive Director from 2004 to 2009. Between 2002 and 2004, Mr. Voser was Chief Financial Officer of Asea Brown Boveri (ABB) in Switzerland. Between 1982 and 2002, he worked for the Royal Dutch / Shell Group, holding various assignments in Switzerland, the UK, Argentina and Chile. Mr. Voser served as Chairman of Catalyst Inc. from 2013 to December 31, 2018. He serves as a Director Catalyst Inc. He has been Chairman of Board for PSA International Pte Ltd since April 1, 2019. He served as serves as Deputy Chairman at PSA International Pte Ltd from July 01, 2018 to April 1, 2019. He served as a Director at Roche Holding AG since March 01, 2011 until 2019. His Mandates on boards of important corporations, organizations and foundations or interest groups: Mr. Voser is a member of the Board of Directors of the Swiss Federal Auditor Oversight Authority. He held a variety of finance and business roles including chief financial officer of Oil Products. Mr. Voser returned to Shell in 2004 becoming a managing director of The Shell Transport and Trading Company, PLC. Mr. Voser is also active in a number of international and bilateral organizations. He served as Chief Executive Officer of Royal Dutch Shell plc from 2009 to 2013 and CFO from 2004 to 2009. He has wealth of experience in board positions in leading companies such as a Roche, IBM, Catalyst, Temasek Holdings and PSA International in Singapore. He was a member of the European Round Table of Industrialists and a former member of The Business Council. He has outside board experience as a Director of Roche Holding Limited and Temasek. Mr. Voser graduated in Business Administration from 1979 to 1982 from the University of Applied Sciences, Zurich.

CEO Compensation
  • Peter's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Peter's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ABB management team in years:

2.7
Average Tenure
56.5
Average Age
  • The tenure for the ABB management team is about average.
Management Team

Peter Voser

TITLE
CEO & Chairman
AGE
61
TENURE
0.4 yrs

Timo Ihamuotila

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
53
TENURE
2.4 yrs

Diane de Saint Victor

TITLE
General Counsel
COMPENSATION
$3M
AGE
64

Peter Terwiesch

TITLE
President of Industrial Automation Division
COMPENSATION
$3M
AGE
53
TENURE
2.7 yrs

Tarak Mehta

TITLE
President of Electrification Products Division
COMPENSATION
$3M
AGE
53
TENURE
0.4 yrs

Frank Duggan

TITLE
President of Europe
COMPENSATION
$3M
AGE
60
TENURE
4.7 yrs

Greg Scheu

TITLE
Executive Officer
COMPENSATION
$2M
AGE
58
TENURE
5.8 yrs

Claudio Facchin

TITLE
President of Power Grids Business
COMPENSATION
$3M
AGE
54
TENURE
9.7 yrs

Chunyuan Gu

TITLE
President of Asia
COMPENSATION
$3M
AGE
61

Sami Atiya

TITLE
President of Robotics & Discrete Automation Business
COMPENSATION
$3M
AGE
55
Board of Directors Tenure

Average tenure and age of the ABB board of directors in years:

3.4
Average Tenure
58
Average Age
  • The tenure for the ABB board of directors is about average.
Board of Directors

Peter Voser

TITLE
CEO & Chairman
AGE
61
TENURE
4.4 yrs

Jacob Wallenberg

TITLE
Vice Chairman
AGE
63
TENURE
4.4 yrs

David Constable

TITLE
Independent & Non-Executive Director
AGE
58
TENURE
4.4 yrs

David Meline

TITLE
Independent & Non-Executive Director
AGE
62
TENURE
3.4 yrs

Matti Alahuhta

TITLE
Independent & Non-Executive Director
AGE
67
TENURE
5.4 yrs

Fred Curado

TITLE
Independent & Non-Executive Director
AGE
58
TENURE
3.4 yrs

Satish Pai

TITLE
Independent & Non-Executive Director
AGE
58
TENURE
3.4 yrs

Lars Förberg

TITLE
Non-Executive Director
AGE
54
TENURE
2.4 yrs

Jennifer Li

TITLE
Director
AGE
51
TENURE
1.5 yrs

Geraldine Matchett

TITLE
Director
AGE
47
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • ABB individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Aug 19 Sell Sami Atiya Individual 28. Aug 19 28. Aug 19 -690 €16.50 €-11,383
11. Jun 19 Buy Sami Atiya Individual 06. Jun 19 06. Jun 19 24,435 €16.87 €412,137
11. Jun 19 Buy Chunyuan Gu Individual 06. Jun 19 06. Jun 19 16,855 €16.87 €284,288
11. Jun 19 Buy Francis Duggan Individual 06. Jun 19 06. Jun 19 44,905 €16.87 €757,398
11. Jun 19 Buy Tarak Mehta Individual 06. Jun 19 06. Jun 19 29,541 €16.87 €498,258
11. Jun 19 Buy Claudio Facchin Individual 06. Jun 19 06. Jun 19 31,232 €16.87 €526,780
11. Jun 19 Buy Diane de Saint Victor Individual 06. Jun 19 06. Jun 19 43,767 €16.87 €738,203
11. Jun 19 Buy Greg Scheu Individual 06. Jun 19 06. Jun 19 27,935 €16.90 €471,971
11. Jun 19 Buy Peter Terwiesch Individual 06. Jun 19 06. Jun 19 29,431 €16.87 €496,403
22. May 19 Buy Investor AB (publ) Company 15. May 19 21. May 19 5,400,000 €17.20 €91,943,605
08. May 19 Buy Gunnar Brock Individual 06. May 19 06. May 19 3,311 €16.72 €55,371
08. May 19 Buy Geraldine Matchett Individual 06. May 19 06. May 19 4,326 €16.72 €72,346
08. May 19 Buy Xin-Zhe Li Individual 06. May 19 06. May 19 2,973 €16.72 €49,719
08. May 19 Buy David Constable Individual 06. May 19 06. May 19 3,511 €16.72 €58,716
08. May 19 Buy David Meline Individual 06. May 19 06. May 19 4,013 €16.72 €67,111
08. May 19 Buy Lars Förberg Individual 06. May 19 06. May 19 7,970 €16.72 €133,286
08. May 19 Buy Satish Pai Individual 06. May 19 06. May 19 3,066 €16.72 €51,274
08. May 19 Buy Peter Voser Individual 06. May 19 06. May 19 29,943 €16.72 €500,751
08. May 19 Buy Jacob Wallenberg Individual 06. May 19 06. May 19 4,515 €16.72 €75,506
08. May 19 Buy Matti Alahuhta Individual 06. May 19 06. May 19 3,210 €16.72 €53,682
08. May 19 Buy Frederico C. Pinheiro Curado Individual 06. May 19 06. May 19 2,973 €16.72 €49,719
03. Apr 19 Buy Timo Ihamuotila Individual 02. Apr 19 02. Apr 19 42,572 €17.04 €725,458
05. Dec 18 Buy Jean-Christophe Deslarzes Individual 15. Nov 18 15. Nov 18 46,073 €17.28 €796,088
X
Management checks
We assess ABB's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ABB has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ABJ News

Simply Wall St News

ABJ Company Info

Description

ABB Ltd manufactures and sells electrification, industrial automation, and robotics and motion products for customers in utilities, industry and transport, and infrastructure worldwide. Its Electrification Products segment provides electric vehicle charging infrastructure, solar power solutions, modular substation packages, distribution automation products, switchboard and panel boards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. This segment serves building, data center, rail, wind and solar, distribution utilities, food and beverage, marine, e-mobility, and oil and gas industries. The company’s Robotics and Motion segment offers robotics, motors, generators, drives, wind converters, components and systems for railways and related services, and digital solutions for applications in industries, transportation and infrastructure, and utilities. This segment serves machinery manufacturers, process industries, hybrid and batch manufacturers, transportation equipment manufacturers, discrete manufacturing companies, utilities, and customers in the automotive industry. Its Industrial Automation segment provides process and discrete control solutions, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation and solutions, electric ship propulsion systems, machine and factory automation solutions, and turbochargers, as well as remote monitoring, preventive maintenance, and cybersecurity services. This segment serves companies in the oil and gas, minerals and mining, metals, pulp and paper, chemicals and pharmaceuticals, food and beverage, power generation, and marine industries. ABB Ltd has a strategic collaboration with IBM. ABB Ltd was founded in 1883 and is headquartered in Zurich, Switzerland.

Details
Name: ABB Ltd
ABJ
Exchange: DB
Founded: 1883
CHF37,672,478,413
2,132,822,461
Website: http://www.new.abb.com
Address: ABB Ltd
Affolternstrasse 44,
Zurich,
Zurich, 8050,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX ABBN Common Stock SIX Swiss Exchange CH CHF 22. Jun 1999
OTCPK ABLZ.F Common Stock Pink Sheets LLC US USD 22. Jun 1999
DB ABJ Common Stock Deutsche Boerse AG DE EUR 22. Jun 1999
XTRA ABJ Common Stock XETRA Trading Platform DE EUR 22. Jun 1999
LSE 0NX2 Common Stock London Stock Exchange GB SEK 22. Jun 1999
OM ABB Common Stock OMX Nordic Exchange Stockholm SE SEK 22. Jun 1999
NYSE ABB ADR EACH REPR 1 ORD CHF1.03 New York Stock Exchange US USD 06. Apr 2001
DB ABJA ADR EACH REPR 1 ORD CHF1.03 Deutsche Boerse AG DE EUR 06. Apr 2001
BMV ABB N ADR EACH REPR 1 ORD CHF1.03 Bolsa Mexicana de Valores MX MXN 06. Apr 2001
Number of employees
Current staff
Staff numbers
147,000
ABB employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/25 20:58
End of day share price update: 2019/06/28 00:00
Last estimates confirmation: 2019/09/25
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.