Is $ABBV a Buy? AbbVie Stock Analysis

[@DividendDogo]

Abbvie has become my top holding in my dividend portfolio. Love this stock so much. They did a massive Dividend increase for 2021 which makes me super happy as a shareholder.

[@crohmer]

🙄 easy on the dividends man

[@drewpolinchak8756]

Share buy backs are more tax efficient

[@cex6]

We've had a round trip from $108 (at the making of this video) to a high of $120s and now back to $106-107 in ABBV today, this is def another opportunity to jump onboard for the next 2 yrs.

[@joshuakettlehake5051]

I have too much in tech stock, and I'm trying to diversify. I just purchased 13 shares at $104 per share. We will call it $1400 in total which makes up about 7% of my portfolio. This was where I landed at this time in my research. Thank you for your video.

[@cnorth3036]

I know you have many requests... Please consider BMY, thank you.

[@MCK35]

Thanks for the analysis. I bought at 83$ so I'm happy about your numbers.

[@F1MichaelGT]

Thank you for the video. It's that dividend yield & dividend growth rate while maintaining a consistent payout ratio that got me interested in ABBV originally.

[@caseymoffitt682]

I parked my old company’s pension in Abbvie at $67 a share. If I didn’t take the lump sum, I would have had to settle for a $350 monthly annuity when I turned 65 years old in 2047. Currently Abbvie is paying me $344 in dividends quarterly. I hope your projections are close!!

[@Moe-bg1or]

Please do a MRK and BMY stock valuation as well!

[@AshishBudhiraja]

Any reason to not use DCF Terminal value instead of EBITDA multiple for Exit calculations?

[@xanday]

Sweet! I just bought ABBV a few hours before you released the video based on my crappy analysis. Love your videos. Thanks a lot. Regarding the debt... it's the best time to have some debt I believe :)

[@NathanWinklepleckCFA]

Good stuff, Cameron. One tip that might really take your videos to the next level would be to grab yourself a really nice shotgun microphone. I picked up a used Rode on eBay for around $200. It was expensive, but really took my video sound up a notch. You can also make adjustments to get the volume up to close to -0 db in editing. Content is great, though. Really great, detailed analysis. Nice work!

[@harrymartin8019]

I can't remember how I just got here but am I one happy camper. ABBV is my biggest retirement holding and I live 25 miles from Abbott labs / ABBV. Every person I know (golf league) who has had a career at Abbott's are ALL comfortable millionaires. WE call them Million $ babies after the Alice Copper song we all grew up listening to. I noticed u have shows on 1/2 of my retirement dividend portfolio stocks. Can't wait to see your analysis. Thanks for your work time!

[@Phoenix-lk5vt]

Yeeeeees, I’ve been waiting for ABBV. Thanks Cameron :) Holding this one with 90$/share average price, and your numbers make me happy :) Please make BMY breakdown someday, should be interesting as well ✊

[@hseas3793]

You know how confusing big phama is lol soo many drug pipelines !!

[@DocOrtmeyer]

I had it at 75, I was dumb and sold it ☹️

[@MJ-fy9em]

Been waiting for this one 🙌 thanks for the great analysis. Would be very interesting for the viewers to see your analysis on other pharma companies and how they stack up against each other - BMY, MRK are a couple 👍

[@antoniobrkic7031]

I watch your videos every week and I'm happy you decided to do ABBV stock valuation. I bought this stock when it was 91$, definetely will buy some more :D

[@matusbielik5644]

Hi Cameron! Great analysis once again. I am just adding few more info related to revenues. AbbVie's concentration in a single drug - Humira. Although the Allergan acquisition reduced revenue concentration in Humira from about 60% to 40%, this level of concentration is still higher than most industry peers. This is unconventional comparing to peers, which ussually have approx. 40% of revenues concentrated in their TOP 3 drugs. This circumstances exposed AbbVie to risk factors such as pricing pressure, competitive threaths and generic competition. AbbVie's concentration in Humira should steadily decline, representing about 35% of total sales over the next few years. This is due to stronger growth in other products including Imbruvica, Venclexta, and the recently launched Skyrizi and Rinvoq. Skyrizi and Rinvoq will continue steady upward prescription trend, both have shown impressive growth in 2020. The larger risk is the approaching entry of biosimilars in the US market, anticipated in January 2023. US Humira sales remain at over $15 billion and rising, the ensuing decline in these revenues will have a significant negative impact on AbbVie's overall profitability. In first years after 2023 we can see potentional significant decline in total sales due to biosimilars competition for Humira. I do believe that ABBvie is curretly fairly valued/ slightly undervalued according to historical valuation, peer comparison and future growth. However i do consider higher risk of investment due to higher leverage and concentration risk of the company.

[@svenwesterbeek1615]

Thank you for this contribution! Appreciated.

[@michaelsundercock7668]

I would love to see an analysis of Enbridge. I don’t think you’ve done a Canadian stock yet. I enjoy watching your videos every Wednesday.

[@Allen-L-Canada]

same here.

[@alemago76]

Hi, I think he did. Magna International I think it was back in November.

[@Allen-L-Canada]

@@alemago76 and I bought some too cautiously , now realized not enough:)

[@alemago76]

@@Allen-L-Canada Same situation here, but I believe there was a big boost from recent deal with Frisker we didn't know... let's hope for the next

[@kirkhalladay9056]

Thanks you for your content. I can’t tell you how long I’ve been waiting for this type of content. Keep up the great work thx again

[@praisethelord4222]

Excellent video! New subscriber. Keep these up. Thank you

[@tracedietzen3699]

Average cost of 75. I’ll keep holding. Love these analysis videos. Keep up the good work.

[@Silasp123]

Would love to see vertex pharmaceuticals, they literally have a monopoly on the cystic fibrosis market and are growing at 20%, only going for 20x earnings right now.

[@Moe-bg1or]

Its one of my major healthcare holdings. Amazing balance sheet and great value right now!

[@elplanetafinanciero]

They are actually around 37x earnings. They made a 2.72 GAAP EPS on 2020.

[@Silasp123]

@@elplanetafinanciero I don't think that's right. Looking at their 10k, they list GAAP net income per share for 12 months ending December 31 at $10.29. Share price is currently $213.98, so that works out to a P/E ratio of 20.79

[@elplanetafinanciero]

@@Silasp123 Share price at 213? I dont think we are talking about the same company

[@elplanetafinanciero]

@@Silasp123 Im fully bullish on the company but the actual P/E is 38. The fully dilutd EPS is 2.72 and the share price is 104$

[@sep69]

Thanks you for this great video. Happy owner with an average buying price of $81. ABBV is a significant portion of my portfolio so I'm not buying at the moment to prevent from getting overweight on it although watching your video I might have a look again maybe reconsider. :)

[@christiechristofidou]

Great analysis. As it will be likely to see a shift in the coming (months?) years to other markets is it possible to analyze some Eu companies as well (Daimler, BASF, Bayer, Rio Tinto, Rheinmetall, Indra Sistemas, Ahold, ACS Actividades, Fraport AG, HOCHTIEF, etc)?. Thanks

[@richipal]

Thanks Cameron. Quick question: How do you create the distribution table in Excel?

[@brigitterobinson5271]

I own 5 shares and my goal is to get 100 shares within the next 2 years. I missed out on low prices with McDonald's, 3M, and Proctor/Gamble. I am not taking any chances with Abbvie. Smile.

[@antonioamaral400]

Hi there Cameron! I don't know if you will read this comment but, firstly, in the name of the community, thanks for your amazing work on youtube. The detailed explanation and professionalism is appreciated (except for the shirts, keep them casual :) ). I have reviewed the last 9 months of content trying to understand some metrics or advises but couldn't find them. My questions are: - How do you derive the last table you show with the IRR per buy price? - What are some good metrics to understand if some share you bought earlier is still a good hold, or time to sell? - Are you going to release those spreadsheets? :) Could you please explain them on a video or comment? If you do a video/several introductory videos, I would advise to set them a part into a playlist for the beginners (like me) to learn from and get more confident on their own research. English is not my first language, so I am sorry if I made any mistakes.

[@leonardlarino3775]

My regrets not adding more in the 80’s. My best performer for the past 2 years

[@tcole3241]

Thanks Cameron! I found your channel last June and your evaluations are on point. That was a great early call on Magna by the way.

[@CP-qg4ks]

Thanks for the video on ABBV Suggest: BMY OR FNF

[@shawnchi9229]

How did Cameron come up with the Terminal Cash and Debt estimation? (For EBITDA calculation 10y stock price calculation). The only part I don't follow. Anyone?

[@przemyslawfejdych8433]

Great stuff. Lumen technologies looks very interesting : Price to Free Cash Flow Ratio = 4,3 , EV/EBIDTA = 5,6. It's biggest Michael Burry stock position.

[@przemyslawfejdych8433]

Sorry EV/EBIDTA = 7,8

[@annafejdych176]

Intresting

[@radiatedracer3830]

where are you getting your Ebitda figures? what numbers are you putting together?

[@wittttttt]

Can you please do VRTX?

[@Imwilfred]

Hi, I tried to recreate your working but I am not sure how did you arrived at an EBITDA of $7274 for 2011 (I'm off for the other years too, but I figure I can get them right if I understood how 2011 was done). The operating income in 2011 was $3620 while the depreciation and amortization in the CFO were $508 and $764 respectively. This added up to an EBITDA of just $4892. Am I missing something out?

[@vsx9877]

Could you please do Realty Income? Thanks!

[@amjr2119]

This is great stuff. Can you show your analysis file?

[@marcelosato5445]

Cameron, love your work and videos, thank so much. One question: Doing Future Value isn’t inconsistent to use FCFF instead of FCFE? Same ingredients, different approaches!

[@stephenmacneil5753]

Excellent analysis! I hold it and have wondered what to do moving forward....you've given me tremendous insight! What do you think of Applied Materials? Thanks!

[@mauriceokeeffe9105]

Great vid again have you got any vid on visa and mastercard.

[@ionutpotolea]

Great stuff! Can you tell us where do you pull your numbers from?

[@pochen546]

Very good coverage on its capital structure. I am hoping you can also look at its operation efficiency: EBITDA, CFO, FCF margins.

[@matsverschueren7976]

Bought in last week. Let's go! Needed a good dividend in my wallet Also invested in Arrowhead Pharmaceuticals since it stood at 40$, this would be a good one as well if it hasn't been done yet. Great future ahead for Arrowhead

[@nandansawant]

Please do an analysis of AMGN and KMB. Their prices have fallen a little but not sure what would be a good buy price, considering both have the potential for long term dividend growth. I am interested in your thoughts on KMB, currently yielding 3.45% with 50 years of dividend growth.

[@johnmoran1334]

Hey Cameron . can you take a look at Energy Transfer ticker ET? ty

[@MrGiggity890]

Would love to see an update on ABBV and an analysis of AMGN

[@rahulparikh6183]

Sir, can you please do AVGO? What a beast of a company (just looking at VERY BASIC metrics). VERY curious to know your opinion on this!

[@randont]

I love this channel! Keep’m coming! Will be huge someday!

[@ronshook3241]

Whats your thoughts on Royal bank?

[@arangotan]

Can I request Merck? I’m hearing it’s a great value right now

[@seb4058]

I must be missing something. I don't get to the same EBITDA. For F19 : 8426 + 1784 + 464 + 1553 = 12,227 (Net income b4 taxes + Interest expense + Depreciation tangible + Amort. Intangibles)

[@michaelblazevich8825]

I like the analysis and your shirts are always great. I agree with sort of looking the other way on the debt because they should be pretty confident in this investment considering they had to do a lot just to acquire it. It had a nice entry day today and I can see the upside especially if they can come up with a new drug. On another note, I love your channel and analyses.

[@CaroScuba]

Have you done one on Abbott?

[@gustavonavas727]

Great Job sir! Have you done one on WFC as a turnaround story?

[@mofojohnson1]

I do like abbvie, I am also interested in Regeneron, who seem to have great revenue growth and cash flow and slightly overlooked by the market. What do you think of this company

[@jonathanhunt7040]

Great review. My target was 105 based on my research so nice to see data driven confirmation.

[@leongruneberg4844]

I'd love to see a video on Abbot Labs. I wonder if pharma will be patenting meds for long covid conditions for years to come?

[@WilliamvandeLagemaat]

Same here, also wonder what Abbott would result in. To me it seems like the same good investment, but would like to see Cameron's view on it

[@ultimmaawarrior5062]

Just curious. Why do you not include dividend numbers in your evaluations? Are they just already in the fco numbers?

[@CstewartCFA]

Correct, the dividend comes out of the free cash flow number. I’m valuing a business on its entire cash flow, not the percentage that’s distributed to shareholders. The dividend yield fails to capture the impact of retained cash flow and the repurchase of shares.

[@ultimmaawarrior5062]

@@CstewartCFA thank you for the reply. Makes sense.

[@DrBrightThomas]

Excellent analysis Cameron! $ABBV or $BMY Which one would you choose for long term investing?

[@TP-bc2pt]

Thank you for explaining this with such clarity. What do you think about CMG in current state of inflection? @Cameron Stewart. If you could have one for PLTR (IPO in 2020) that would be great

[@jcfcunha]

Thanks Cameron. Great stuff, as always. Let me refer to the 18,5 % dividend CAGR for the last 5 years.

[@jduncanandroid]

Just found your channel, love the breakdowns! I'd love to see an analysis on McKesson

[@Dave004]

Wondering what you thin of Biogen, ticker BIIB. They seem like a good pharam company but no dividend, however, this could just mean more room for stock itself to grow.

[@gowthamanramanathan8227]

Will Vistra Corp stock price recover by end 2021

[@surajrambhia1742]

I look forward to your videos every week Cameron :-) Question for you... if you can't find a good buying opportunity in an over inflated market, would you put your cash in ultra short term bonds in the interim? Where's a good place to store liquid cash while generating some yield?

[@CstewartCFA]

I don’t think there’s a good answer here. Unfortunately, if you chase yield you will most likely buy less credit worthy assets that will lose value in a market decline, which is exactly when you want your cash to buy under priced equity. Instead spend the time focusing on the companies you’re by when they decline, you will be better served in the long run

[@surajrambhia1742]

@@CstewartCFA Thanks for the reply! I guess you're right, I'm going to shortlist my companies of interest. If I would buy any bond fund I would only own the ones with AAA assets.

[@weirdvegandad1313]

Thank you so much! Amazing video, could you possibly consider doing PFE and why WB dropped the stock? Also how the PFE vaccine will affect earnings?

[@puppe7pro]

Currently trading at a 39/40 P/E. Still justifiable?

[@bay5005]

Awesome thank you! This company was solid this year and I am still holding a small position. If it drops 10-20% I will begin to look to scaling more into a position!

[@IDNeon357]

That drop looks about to happen fyi

[@bay5005]

@@IDNeon357 Thank you! That big red bar and volume looks like there is going to be a discount coming soon. My advice back is to buy at least a few shares of $AMC. As of last Friday they were still shorting the stock and hedge funds haven't covered their positions. Squeeze technically hasn't started yet.

[@IDNeon357]

If anyone needs some justification. ABBV's current floor of 20/50/100 EMA is flipping upside-down as we speak with a large bearish signals and bottom heavy volume by price. So it's in position that its been every time before before hitting its long term support or about a pull back to $105 conservative or $90ish if big.

[@OverTheCap10]

Thanks for the video. Please review BMY.

[@erasmovelez]

My top IRA stock. Got my dividend today.

[@Zion_simmons]

Can you please analyze AMGN! Wonderful analysis! thank you!

[@oswaldoliborio4707]

Quick recommendation Allstate Insurance stock analysis

[@patrickac2924]

Nice work Cam! Can you do Texas Instruments? I’ve been thinking of investing in the semi conductor space

[@bethanyemilymathias]

Can you do CLX and GPC. Thanks!

[@WilderbeastBreaks]

I’ve been trading ABBV, But I also bought some Call options expiring June 17/2022. @ $155… 0.97 per contract.

[@screwcollege8474]

You are rich now

[@Motivational_Flavio]

Thank you, confirms my thesis! Been holding all this year and very bullish even though it seems a bit unloved by current era investors

[@amitshah4741]

I look forward to your videos on Wednesdays. Would you consider evaluating PGR? Have you thought about starting a subscription base monthly news letter?

[@nandoinvestments5345]

Could you make a video about Intelligent Systems Corporation (INS)? Thanks!

[@vladi-tl1xi]

6:52 Yes, Sir.

[@linnartfelklm.sc.6467]

Hi Cameron. Great video, again. It would be great to have a video that explains why you use EV/EBITDA instead of P/E ratio.

[@zenstories]

EBITDA is before all the noise on the income statement. P/E is after all the noise on the income statement. Also, P/E is based on market cap which doesn't reflect the net market value of the company. If you watch a handful of videos you will get a grasp on this pretty quickly.

[@linnartfelklm.sc.6467]

@@zenstories but net income matters. If i put my money into a company i want to know the net income, not the EBITDA

[@godspeedmax6038]

Owned Abbie for yrs in my dividend focused IRA. Want to buy its parent ABT but it rarely pulls back

[@IDNeon357]

ABT is poised for a big pull back right now. Possibly down to $90/share. If interested.

[@bigsack7528]

Can you analyze Scott's Miracle-Gro Company?

[@jeffbilbo3313]

What do you think the odds of cutting or increasing the dividend when the patent on Humira over the next few years?

[@CstewartCFA]

Check their 10k for the stated dividend policy. If it’s a variable dividend then yes, I’d it’s fixed then possibly no.

[@tomasdusek2123]

Great video as always! REGI or CSIQ next please!!

[@Sr101depechemode]

@Cameron can you please do INTEL ! Thank you for all your work !

[@yamiyakoumis1007]

Awesome, love your videos 😊

[@BlackMetalBass]

Great analysis and presentation! New subscriber here.

[@nickmiller772]

Cameron, try Car Gurus. Revenue growth of around 100%, no debt, and ev/ebitda of 30. Only been in business for 5 years, but it's worth a look

[@kfirben-yehuda7050]

Great Analysis. Thank you

[@andrewdoumith]

Hey man. Will you mind analyzing GILD?

[@mangosorbet8183]

Can you please analysis DIS Disney

[@ChuckCalhoun1]

Stock valuation on VW please. Long

[@davidderfus3462]

Yet another GREAT analysis !! !! !! Thanks for the info.

[@manueldalcol201]

can you look at UnitedHealth Group? they seem pretty undervalued at the moment

[@konstantinassolovejus]

i thought it is needed to subtract a change in non cash working capital when calculating FCFE.

[@CstewartCFA]

The change in working capital and non cash items are already included in the cash flow from operations number

[@SergiMedina]

Great company, amazing value!

[@frankdavidson644]

Great information thank you 😊 🙏

[@sritamprout]

Please consider Applied Materials

[@vpatel6601]

love this channel! Is there a way I can contact you for more advice, on my income level and how I should position my portfolio?

[@CstewartCFA]

I’m on Twitter @cstewartcfa

[@Dave_UL]

Great video although it's outdated im currently looking into good pharmaceutical stocks for the port

[@justone1786]

Another great analysis, keep up your work!