Stock In Focus – TAM Stock Screener – Abbott Laboratories (ABT)

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

Abbott Laboratories (ABT)

Abbott manufactures and markets medical devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, molecular diagnostic platforms, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.

A quick look at the share price history (below) over the past twelve months shows that the price is down 17.26%. Here’s why the company is undervalued.

ABT data by YCharts

Summary

Market Cap: $172 Billion

Enterprise Value: $179 Billion

Operating Earnings

Operating Earnings: $10.3 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 17.50

Free Cash Flow (TTM)

Free Cash Flow: $8.47 Billion

FCF/EV Yield

FCF/EV Yield: 4.92

Shareholder Yield:

Shareholder Yield: 4%

Other Indicators

F-Score: 9.00

Altman Z-Score: 4.98

ROA (5 Year Avge%): 14