AbbVie Inc. was spun off from Abbott Labs. It is a global research-based
biopharmaceutical company that focuses on the development and marketing of
advanced therapies for complex diseases such as rheumatoid arthritis,
psoriasis, Crohn’s disease, HIV, cystic fibrosis, Parkinson’s disease and
colitis. When the spin off took place,
we elected leave our investment in the entity versus the parent. Because the spin off too place in 2012, there
is little significant historical quantitative data. However, the company should achieve above
average growth as a result of:
(1) rising Humira
sales,
(2) strong product pipeline.
Negatives:
(1) generic competition,
(2) tough regulatory environment.
ABBV is rated Aby Value Line, has a 75% debt to equity
ratio and its stock yields approximately 2.9%.
Statistical Summary
Stock
Dividend
Payout # Increases
Yield Growth Rate
Ratio Since 2013
ABBV
2.9%
8%
46%
1
Ind Ave
2.9
5*
50
NA
Debt/
EPS Down
Net Value Line
Equity
ROE Since 2012
Margin Rating
ABBV
75%
65%
1
29% A
Ind Ave
37
25
NA
20 NA
*most
companies in ABBV industry don’t pay a dividend.
Chart
Note: As
you may know, ABBV was a recent spin off from Abbott Labs. The chart is the entire trading history of
the stock. Since the Dividend Growth
Portfolio owns a full position in ABBV, the good news is that the stock has
been in an uptrend during its short life.
I don’t have enough fundamental data yet to construction a valuation
range.
12/14
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