AbbVie (ABBV) Stock Analysis & Winston Score

AbbVie is a large pharmaceutical company that discovers, makes, and sells prescription medicines. Its biggest product is Humira, a drug used to treat conditions like rheumatoid arthritis and Crohn's disease, which was once the best-selling drug in the world. AbbVie also sells cancer treatments, eye care drugs, and medicines for mental health conditions, selling mostly to hospitals, pharmacies, and insurance-covered patients.

AbbVie makes money by selling branded prescription drugs, which carry high prices and strong profit margins, reflected in its 70% gross margin. The company operates globally, with the United States generating the majority of its revenue, and it ranks among the largest drug makers in the world by market value. The key challenge AbbVie faces is replacing lost Humira revenue, since cheaper copycat versions of that drug have entered the market — the company is betting on newer drugs like Skyrizi and Rinvoq to fill that gap.

Winston Score History

Politician Trades

39 trades / 12mo

18 Congressional buys and 21 sells on ABBV in the last 12 months.

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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

+10.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$9.1B/ year

↓ Declining (-29% vs prior year)

14.9% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$5.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

AbbVie is a rare growth stock that's already generating positive cash flow while growing at 10%. 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.

Share count broadly stable

−0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.78B (2021) → 1.77B (2025)

Score breakdown

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Quality

Gross Margin

72.6%

Premium pricing power — 72.6% gross margin

Operating Margin

35.0%

Excellent — 35.0% operating margin

ROCE

9.0%

Below par — 9.0% 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

+8.6%

Steady sales growth (8.6% YoY)

EPS YoY

-1.3%

Earnings shrinking (-1.3% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

450%

Turns 450% of profit into real cash

FCF Margin

28.9%

Converts sales into free cash efficiently (28.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

5.65x

Adequate interest coverage (5.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

107.4x

Expensive — P/E 107.4

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+93.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (107.4 → 14.2)

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Dividends

Dividend Yield

2.65%

Moderate income — 2.65% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+5.6%

Dividend growing modestly (5.6% YoY)

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