Abbott Laboratories (ABT)
Quantitative Summary
DeterministicAt 24.0x earnings — a 63% discount to the sector average of 65.2x — ABT is in the lower valuation range. Financial health is average: Piotroski 5/9, Altman Z 4.9. DCF fair value of $57 implies 43% downside based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of Abbott Laboratories reflect a mature, high-margin operation where profitability is driven primarily by net margins rather than asset efficiency or leverage. While the DuPont decomposition reveals that an equity multiplier of 1.64x and robust gross margins underpin the current ROE, the modest ROIC-WACC spread of +0.9% suggests capital allocation yields are barely exceeding the cost of debt and equity. Credit metrics present a mixed signal; although the Altman Z-Score of 5.2 indicates low bankruptcy risk and the Beneish M-Score of -2.53 points to absent earnings manipulation, a Piotroski F-Score of 5/9 signals moderate financial strength without recent significant improvements in balance sheet quality or profitability trends.
Valuation analysis highlights a discrepancy between market pricing and intrinsic value models. Trading at 27.7x forward earnings, the stock trades below its sector average of 30.8x yet commands a premium relative to historical norms. A discounted cash flow model implies fair value at $59, suggesting current prices embed significant downside potential with an implied valuation gap of -42.4%. This divergence from intrinsic value persists despite management expectations for sustained free cash flow growth averaging 9.8% over the next decade, indicating the market may be pricing in slower execution or macro headwinds not fully captured by long-term DCF assumptions.
Risk-adjusted performance metrics reveal a challenging recent trajectory alongside divergent factor exposures. The annual Fama-French alpha of -20.53% underscores underperformance relative to risk-free benchmarks, while the positive Value Factor tilt of 0.243 suggests the stock has benefited from value premium dynamics despite neutral profitability factor exposure. Notably, insider activity over the last ninety days shows $2,615,977 in net buying, which may signal management confidence or strategic positioning against broader market skepticism regarding near-term growth execution and valuation compression.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 6% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 7.4% | 9.4% | 11.4% |
|---|---|---|---|
| 2% | $70 | $51 | $40 |
| 3% | $84 | $57 | $43 |
| 4% | $105 | $66 | $48 |
Center = base case. Green = >10% upside, Red = >10% downside vs $86.97.
Pre-computed DCF: WACC=9.4%, terminal growth 3%. Fair value $57 (-43.2%). Not investment advice.
Valuation Context
Currently trading 22% below its 5-year average P/E of 34.5x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedAbbott Laboratories is currently trading at $87.41 within the healthcare sector, a position that may reflect specific institutional sentiment regarding valuation and future earnings potential in this defensive industry. The presence of Simple Moving Average crossovers often serves as a focal point for larger market participants who utilize these technical thresholds to time entry or exit strategies without necessarily altering their long-term fundamental thesis. When price action interacts with these moving averages, it can indicate shifting momentum that institutional algorithms might be monitoring closely for trend confirmation or reversal signals. Volume trends accompanying the current price level provide critical context on whether major players are actively accumulating shares or distributing positions quietly. Elevated volume during upward moves could suggest aggressive positioning by large entities anticipating further gains, whereas diminishing volume alongside price stability might imply a lack of immediate institutional urgency to deploy additional capital at these levels. The interplay between the stock's current valuation and its historical volatility often dictates how sophisticated investors manage risk exposure, potentially leading to strategic hedging or sector rotation decisions rather than straightforward directional bets on Abbott Laboratories alone. Ultimately, the technical landscape presents a complex picture where institutional behavior is likely nuanced rather than binary. Larger market forces may be using these metrics to fine-tune portfolio allocations in anticipation of broader healthcare sector dynamics, balancing growth expectations against stability needs. Observers should note that such data points serve as informational inputs for decision-making frameworks but do not inherently dictate the optimal course of action for all capital allocators given their unique risk tolerances and investment horizons.
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-15 | $0.6300 | 0.0% |
| 2026-01-15 | $0.6300 | +6.8% |
| 2025-10-15 | $0.5900 | 0.0% |
| 2025-07-15 | $0.5900 | 0.0% |
| 2025-04-15 | $0.5900 | 0.0% |
| 2025-01-15 | $0.5900 | +7.3% |
| 2024-10-15 | $0.5500 | 0.0% |
| 2024-07-15 | $0.5500 | 0.0% |
| 2024-04-12 | $0.5500 | 0.0% |
| 2024-01-11 | $0.5500 | +7.8% |
| 2023-10-12 | $0.5100 | 0.0% |
| 2023-07-13 | $0.5100 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like IHI or IYH, the fund manager is mechanically forced to buy or sell ABT shares regardless of Abbott Laboratories's individual fundamentals. We estimate $20.9B of passive capital is structurally linked to ABT through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Abbott Laboratories to visualize passive redemption contagion across ETFs and collateral stocks.
If Abbott Laboratories (ABT) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Johnson & Johnson (JNJ) as the most exposed collateral stock, sharing 3 ETFs with ABT. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 34 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
ABT Ownership Dynamics
Passive funds hold 1 in every 8 ABT shares, reducing daily market volatility.
Abbott Laboratories (ABT) exerts measurable gravity on the passive index market, currently representing 16.1% of the IHI (IHI) and 2.9% of the IYH (IYH). Across 32 tracked ETFs, approximately 221M shares (12.7% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest ABT Exposure
Float lock-up computed from 32 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
ABT Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Abbott Laboratories over the past year sits near $130.24 (12% of 252-day volume). The current price of $86.97 sits 33.2% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level. The highly concentrated volume profile (12% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
ABT Capital Efficiency
How efficiently does Abbott Laboratories convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Abbott Laboratories converts 61% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. The positive ROIC-WACC spread of 0.7% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-14 | 61 | $83.83 | $5,113.63 |
| 2026-05-12 | 178 | $82.56 | $14,695.68 |
| 2026-05-11 | 29 | $84.32 | $2,445.28 |
| 2026-05-08 | 172 | $87.01 | $14,965.72 |
| 2026-05-04 | 173 | $89.46 | $15,476.58 |
| 2026-05-01 | 400 | $90.79 | $36,316 |
| 2026-04-28 | 59 | $92.80 | $5,475.2 |
| 2026-04-27 | 3,092 | $91.13 | $281,773.96 |
| 2026-04-24 | 407 | $92.48 | $37,639.36 |
| 2026-04-23 | 1 | $91.70 | $91.7 |
| 2026-04-22 | 7 | $92.72 | $649.04 |
| 2026-04-21 | 6,240 | $96.00 | $599,040 |
| 2026-04-20 | 132 | $96.81 | $12,778.92 |
| 2026-04-17 | 10 | $95.47 | $954.7 |
| 2026-04-14 | 22 | $100.69 | $2,215.18 |
| 2026-04-13 | 68,600 | $100.30 | $6.9M |
| 2026-03-25 | 50,172 | $104.06 | $5.2M |
| 2026-03-23 | 338 | $105.46 | $35,645.48 |
| 2026-03-06 | 3,061 | $111.04 | $339,893.44 |
| 2026-03-05 | 24,261 | $113.10 | $2.7M |
| 2026-03-04 | 10 | $113.61 | $1,136.1 |
| 2026-03-03 | 31 | $114.12 | $3,537.72 |
| 2026-03-02 | 57 | $116.35 | $6,631.95 |
| 2026-02-27 | 47 | $116.26 | $5,464.22 |
| 2026-02-25 | 137 | $114.58 | $15,697.46 |
| 2026-02-23 | 30,309 | $112.21 | $3.4M |
| 2026-02-19 | 19,059 | $113.29 | $2.2M |
| 2026-02-17 | 562 | $112.68 | $63,326.16 |
| 2026-02-09 | 1,026 | $110.83 | $113,711.58 |
| 2026-01-28 | 1 | $108.27 | $108.27 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
SEC Comment Letters
SEC correspondence with the company regarding their filings. Comment letters often flag disclosure deficiencies, accounting concerns, or material omissions.
Source: SEC EDGAR correspondence. Comment letters are public records of SEC staff review of company filings.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| SYK | 0.430 | 0.450 | Moderate |
| VRTPX | 0.407 | 0.376 | Moderate |
| PLD | 0.402 | 0.356 | Moderate |
| EGP | 0.382 | 0.391 | Moderate |
| MDT | 0.346 | 0.317 | Moderate |
| ATO | 0.330 | 0.323 | Moderate |
| INVH | 0.322 | 0.307 | Moderate |
| ELV | 0.309 | 0.138 | Moderate |
| ZTS | 0.306 | 0.287 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare ABT to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.