ABB

Electrical Equipment & Parts · Industrials

Price

$37.13

+0.00 (+0.00%)

Market Cap

$69.02B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−10.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 2.14B (2018) → 1.91B (2022)

ABB is a Swiss industrial company that makes equipment used to move and control electricity and machines. Its main products include electric motors, robots, power grids, and automation systems. Its customers are factories, utilities, data centers, and construction companies across many industries worldwide.

ABB earns money by selling hardware, software, and services to industrial customers. It operates in over 100 countries, with strong revenue coming from Europe, North America, and Asia, and generates roughly $32 billion in annual sales. ABB's competitive edge comes from its deep engineering expertise and the high cost for customers to switch away from its installed equipment. The biggest growth driver is rising demand for electrification and factory automation, as manufacturers invest in energy efficiency and robots to replace manual labor — though a slowdown in global industrial spending remains the key risk to watch.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+150.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$1.2B/ year

→ Flat (-4% vs prior year)

4.0% of revenue

In line with sector average (4%)

Steady R&D investment year-over-year

Insider Activity

0.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$2.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

ABB is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

35.4%

Modest — 35.4% gross margin

Operating Margin

15.9%

Healthy — 15.9% operating margin

ROCE

5.9%

Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+8.5%

Steady sales growth (8.5% YoY)

EPS YoY

-14.2%

Earnings shrinking (-14.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

72%

Modest — 72% of profit becomes cash

FCF Margin

5.6%

Thin free cash flow (5.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.72

Moderate — manageable debt (0.72)

Interest Cover

22.86x

Comfortably covers interest (22.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

19.9x

Fair value — P/E 19.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

1.12%

Small dividend — 1.12% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+9.7%

Dividend growing modestly (9.7% YoY)

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