Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin32.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin6.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt16.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$73.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$14.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
D
Price-to-BookN/A (neg. equity)
Negative book value means total liabilities exceed total assets on the balance sheet. Two very different causes: (1) Heavy buybacks and dividends in highly profitable companies (Apple, McDonald's, Domino's) — equity deliberately reduced, not a warning sign. (2) Accumulated losses in unprofitable companies (Peloton, WeWork) — a genuine red flag. Check profitability and free cash flow to distinguish between the two. P/B cannot be scored meaningfully here.
Cash Flow
B
Free Cash Flow$17.8B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income28.7%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$13.6B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About AbbVie Inc.
AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. The company offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions. In addition, the company offers Ozurdex for visual impairment; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; and other eye care products, including Refresh/Optive, Xen, Durysta, and Restasis. Further, it provides Mavyret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; and Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.
AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. The company offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions. In addition, the company offers Ozurdex for visual impairment; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; and other eye care products, including Refresh/Optive, Xen, Durysta, and Restasis. Further, it provides Mavyret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; and Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Negative book value means total liabilities exceed total assets on the balance sheet. Two very different causes: (1) Heavy buybacks and dividends in highly profitable companies (Apple, McDonald's, Domino's) — equity deliberately reduced, not a warning sign. (2) Accumulated losses in unprofitable companies (Peloton, WeWork) — a genuine red flag. Check profitability and free cash flow to distinguish between the two. P/B cannot be scored meaningfully here.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering AbbVie Inc. at $216.49.
The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
70.2%▲
70.0%▲
62.4%▼
70.0%
Operating Margin %
32.8%▲
21.1%▼
24.9%▼
32.4%
Net Income %
6.9%▼
7.6%▼
9.0%▼
20.4%
Diluted EPS
2.36▼
2.39▼
2.72▼
6.63
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$134.0B
$135.2B
$134.7B
$138.8B
N/A
Total Debt
$67.5B▲
$67.1B▲
$59.4B▼
$63.3B•
N/A
Working Capital
-$14.2B▼
-$13.2B▼
-$4.8B▼
-$1.1B•
N/A
Years to Pay Debt
15.97
15.70
12.21
5.35
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$17.8B▼
$17.8B▼
$22.1B▼
$24.2B•
N/A
Owner Earnings
$13.6B
$13.6B
$14.3B
$21.0B
N/A
CapEx % of Net Income
28.7%
22.8%
16.0%
5.9%
N/A
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
-1,818,241
-583,380
-203,280
-102,245
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
22,703,000
17,688,000
18,096,000
25,019,000
Total Unusual Items
-5,074,000
-2,778,000
-924,000
-845,000
Total Unusual Items Excluding Goodwill
-5,074,000
-2,778,000
-924,000
-845,000
Net Income From Continuing Operation Net Minority Interest
4,226,000
4,278,000
4,863,000
11,836,000
Reconciled Depreciation
8,139,000
8,386,000
8,698,000
8,467,000
Reconciled Cost Of Revenue
18,204,000
16,904,000
20,415,000
17,414,000
EBITDA
17,629,000
14,910,000
17,172,000
24,174,000
EBIT
9,490,000
6,524,000
8,474,000
15,707,000
Net Interest Income
-2,627,000
-2,160,000
-1,684,000
-2,044,000
Interest Expense
2,893,000
2,808,000
2,224,000
2,230,000
Interest Income
266,000
648,000
540,000
186,000
Normalized Income
7,481,759
6,472,620
5,583,720
12,578,755
Net Income From Continuing And Discontinued Operation
4,226,000
4,278,000
4,863,000
11,836,000
Total Expenses
41,069,000
44,440,000
40,783,000
39,240,000
Total Operating Income As Reported
15,075,000
9,137,000
12,757,000
18,117,000
Diluted Average Shares
1,773,000
1,773,000
1,773,000
1,778,000
Basic Average Shares
1,767,876
1,765,257
1,765,941
1,769,181
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
4,186,000
4,238,000
4,820,000
11,782,000
Net Income Common Stockholders
4,186,000
4,238,000
4,820,000
11,782,000
Otherunder Preferred Stock Dividend
40,000
40,000
43,000
54,000
Net Income
4,226,000
4,278,000
4,863,000
11,836,000
Minority Interests
-7,000
-8,000
-10,000
-9,000
Net Income Including Noncontrolling Interests
4,233,000
4,286,000
4,873,000
11,845,000
Net Income Continuous Operations
4,233,000
4,286,000
4,873,000
11,845,000
Tax Provision
2,364,000
-570,000
1,377,000
1,632,000
Pretax Income
6,597,000
3,716,000
6,250,000
13,477,000
Other Income Expense
-10,867,000
-6,018,000
-5,601,000
-3,293,000
Other Non Operating Income Expenses
-5,793,000
-3,240,000
-4,677,000
-2,448,000
Special Income Charges
-5,016,000
-2,757,000
-778,000
-697,000
Other Special Charges
5,016,000
2,757,000
778,000
697,000
Gain On Sale Of Security
-58,000
-21,000
-146,000
-148,000
Net Non Operating Interest Income Expense
-2,627,000
-2,160,000
-1,684,000
-2,044,000
Interest Expense Non Operating
2,893,000
2,808,000
2,224,000
2,230,000
Interest Income Non Operating
266,000
648,000
540,000
186,000
Operating Income
20,091,000
11,894,000
13,535,000
18,814,000
Operating Expense
22,865,000
27,536,000
20,368,000
21,826,000
Other Operating Expenses
-241,000
-7,000
-179,000
56,000
Research And Development
9,096,000
12,791,000
7,675,000
6,510,000
Selling General And Administration
14,010,000
14,752,000
12,872,000
15,260,000
Gross Profit
42,956,000
39,430,000
33,903,000
40,640,000
Cost Of Revenue
18,204,000
16,904,000
20,415,000
17,414,000
Total Revenue
61,160,000
56,334,000
54,318,000
58,054,000
Operating Revenue
61,160,000
56,334,000
54,318,000
58,054,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
70,803
66,338
57,105
44,589
Ordinary Shares Number
1,767,876
1,765,257
1,765,941
1,769,181
Share Issued
1,838,679
1,831,594
1,823,046
1,813,770
Net Debt
62,267,000
61,620,000
46,571,000
54,070,000
Total Debt
67,496,000
67,144,000
59,385,000
63,271,000
Tangible Book Value
-91,551,000
-91,699,000
-77,543,000
-82,341,000
Invested Capital
64,226,000
70,469,000
69,745,000
80,525,000
Working Capital
-14,227,000
-13,167,000
-4,839,000
-1,075,000
Net Tangible Assets
-91,551,000
-91,699,000
-77,543,000
-82,341,000
Common Stock Equity
-3,270,000
3,325,000
10,360,000
17,254,000
Total Capitalization
55,671,000
63,665,000
62,554,000
76,389,000
Total Equity Gross Minority Interest
-3,228,000
3,364,000
10,397,000
17,287,000
Minority Interest
42,000
39,000
37,000
33,000
Stockholders Equity
-3,270,000
3,325,000
10,360,000
17,254,000
Gains Losses Not Affecting Retained Earnings
-1,144,000
-1,925,000
-2,305,000
-2,199,000
Other Equity Adjustments
-1,144,000
-1,925,000
-2,305,000
-2,199,000
Treasury Stock
9,146,000
8,201,000
6,533,000
4,594,000
Retained Earnings
-15,493,000
-7,900,000
-1,000,000
4,784,000
Additional Paid In Capital
22,495,000
21,333,000
20,180,000
19,245,000
Capital Stock
18,000
18,000
18,000
18,000
Common Stock
18,000
18,000
18,000
18,000
Total Liabilities Net Minority Interest
137,188,000
131,797,000
124,314,000
121,518,000
Total Non Current Liabilities Net Minority Interest
93,899,000
93,048,000
86,473,000
91,980,000
Other Non Current Liabilities
30,795,000
27,634,000
28,607,000
26,032,000
Employee Benefits
1,410,000
1,234,000
1,538,000
1,638,000
Non Current Pension And Other Postretirement Benefit Plans
1,410,000
1,234,000
1,538,000
1,638,000
Tradeand Other Payables Non Current
364,000
1,261,000
2,182,000
2,985,000
Non Current Deferred Liabilities
2,389,000
2,579,000
1,952,000
2,190,000
Non Current Deferred Taxes Liabilities
2,389,000
2,579,000
1,952,000
2,190,000
Long Term Debt And Capital Lease Obligation
58,941,000
60,340,000
52,194,000
59,135,000
Long Term Debt
58,941,000
60,340,000
52,194,000
59,135,000
Current Liabilities
43,289,000
38,749,000
37,841,000
29,538,000
Current Deferred Liabilities
14,304,000
13,627,000
10,717,000
8,254,000
Current Deferred Revenue
14,304,000
13,627,000
10,717,000
8,254,000
Current Debt And Capital Lease Obligation
8,555,000
6,804,000
7,191,000
4,136,000
Current Debt
8,555,000
6,804,000
7,191,000
4,136,000
Payables And Accrued Expenses
34,734,000
31,945,000
30,650,000
25,402,000
Current Accrued Expenses
28,043,000
26,064,000
24,179,000
19,788,000
Payables
6,691,000
5,881,000
6,471,000
5,614,000
Dividends Payable
3,099,000
2,936,000
2,783,000
2,680,000
Accounts Payable
3,592,000
2,945,000
3,688,000
2,934,000
Total Assets
133,960,000
135,161,000
134,711,000
138,805,000
Total Non Current Assets
104,898,000
109,579,000
101,709,000
110,342,000
Other Non Current Assets
10,721,000
9,142,000
8,513,000
5,571,000
Investments And Advances
268,000
279,000
304,000
241,000
Goodwill And Other Intangible Assets
88,281,000
95,024,000
87,903,000
99,595,000
Other Intangible Assets
52,641,000
60,068,000
55,610,000
67,439,000
Goodwill
35,640,000
34,956,000
32,293,000
32,156,000
Net PPE
5,628,000
5,134,000
4,989,000
4,935,000
Accumulated Depreciation
-7,902,000
-7,133,000
-6,646,000
-6,051,000
Gross PPE
13,530,000
12,267,000
11,635,000
10,986,000
Construction In Progress
1,401,000
1,093,000
1,073,000
856,000
Other Properties
8,785,000
7,995,000
7,449,000
Machinery Furniture Equipment
7,995,000
7,449,000
7,107,000
6,850,000
Buildings And Improvements
3,057,000
2,895,000
2,827,000
2,737,000
Land And Improvements
287,000
284,000
286,000
286,000
Current Assets
29,062,000
25,582,000
33,002,000
28,463,000
Other Current Assets
6,265,000
4,927,000
4,932,000
4,401,000
Prepaid Assets
4,993,000
Inventory
4,951,000
4,181,000
4,099,000
3,579,000
Finished Goods
1,580,000
1,173,000
1,356,000
1,162,000
Work In Process
2,287,000
1,951,000
1,643,000
1,417,000
Raw Materials
1,084,000
1,057,000
1,100,000
1,000,000
Receivables
12,589,000
10,919,000
11,155,000
11,254,000
Accounts Receivable
12,589,000
10,919,000
11,155,000
11,254,000
Cash Cash Equivalents And Short Term Investments
5,257,000
5,555,000
12,816,000
9,229,000
Other Short Term Investments
28,000
31,000
2,000
28,000
Cash And Cash Equivalents
5,229,000
5,524,000
12,814,000
9,201,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
17,816,000
17,832,000
22,062,000
24,248,000
Repurchase Of Capital Stock
-980,000
-1,708,000
-1,972,000
-1,487,000
Repayment Of Debt
-9,595,000
-14,621,000
-4,149,000
-14,433,000
Issuance Of Debt
9,291,000
21,971,000
0
2,000,000
Capital Expenditure
-1,214,000
-974,000
-777,000
-695,000
Interest Paid Supplemental Data
3,002,000
2,811,000
2,469,000
2,546,000
Income Tax Paid Supplemental Data
3,626,000
4,064,000
4,702,000
2,988,000
End Cash Position
5,229,000
5,524,000
12,814,000
9,201,000
Beginning Cash Position
5,524,000
12,814,000
9,201,000
9,746,000
Effect Of Exchange Rate Changes
42,000
-65,000
5,000
-62,000
Changes In Cash
-337,000
-7,225,000
3,608,000
-483,000
Financing Cash Flow
-12,724,000
-5,211,000
-17,222,000
-24,803,000
Cash Flow From Continuing Financing Activities
-12,724,000
-5,211,000
-17,222,000
-24,803,000
Net Other Financing Charges
45,000
-42,000
-742,000
-1,102,000
Proceeds From Stock Option Exercised
172,000
214,000
180,000
262,000
Cash Dividends Paid
-11,657,000
-11,025,000
-10,539,000
-10,043,000
Common Stock Dividend Paid
-11,657,000
-11,025,000
-10,539,000
-10,043,000
Net Common Stock Issuance
-980,000
-1,708,000
-1,972,000
-1,487,000
Common Stock Payments
-980,000
-1,708,000
-1,972,000
-1,487,000
Net Issuance Payments Of Debt
-304,000
7,350,000
-4,149,000
-12,433,000
Net Short Term Debt Issuance
2,499,000
0
0
0
Short Term Debt Payments
-2,798,000
-5,008,000
0
0
Short Term Debt Issuance
5,297,000
5,008,000
0
0
Net Long Term Debt Issuance
-2,803,000
7,350,000
-4,149,000
-12,433,000
Long Term Debt Payments
-6,797,000
-9,613,000
-4,149,000
-14,433,000
Long Term Debt Issuance
3,994,000
16,963,000
0
2,000,000
Investing Cash Flow
-6,643,000
-20,820,000
-2,009,000
-623,000
Cash Flow From Continuing Investing Activities
-6,643,000
-20,820,000
-2,009,000
-623,000
Net Other Investing Changes
-29,000
189,000
13,000
774,000
Net Investment Purchase And Sale
41,000
482,000
-22,000
92,000
Sale Of Investment
76,000
555,000
55,000
1,530,000
Purchase Of Investment
-35,000
-73,000
-77,000
-1,438,000
Net Business Purchase And Sale
-5,441,000
-20,517,000
-1,223,000
-794,000
Purchase Of Business
-5,441,000
-20,517,000
-1,223,000
-794,000
Net PPE Purchase And Sale
-1,214,000
-974,000
-777,000
-695,000
Purchase Of PPE
-1,214,000
-974,000
-777,000
-695,000
Operating Cash Flow
19,030,000
18,806,000
22,839,000
24,943,000
Cash Flow From Continuing Operating Activities
19,030,000
18,806,000
22,839,000
24,943,000
Change In Working Capital
-2,362,000
-2,782,000
2,813,000
-94,000
Change In Other Working Capital
-762,000
-3,208,000
-488,000
542,000
Change In Payables And Accrued Expense
951,000
177,000
3,840,000
1,769,000
Change In Payable
951,000
177,000
3,840,000
1,769,000
Change In Account Payable
951,000
177,000
3,840,000
1,769,000
Change In Prepaid Assets
-827,000
361,000
-188,000
-264,000
Change In Inventory
-234,000
-319,000
-417,000
-686,000
Change In Receivables
-1,490,000
207,000
66,000
-1,455,000
Changes In Account Receivables
-1,490,000
207,000
66,000
-1,455,000
Other Non Cash Items
8,643,000
4,470,000
4,811,000
3,144,000
Stock Based Compensation
955,000
911,000
747,000
671,000
Provisionand Write Offof Assets
-933,000
508,000
-443,000
2,243,000
Asset Impairment Charge
847,000
4,476,000
4,229,000
770,000
Deferred Tax
-492,000
-1,449,000
-2,889,000
-1,931,000
Deferred Income Tax
-492,000
-1,449,000
-2,889,000
-1,931,000
Depreciation Amortization Depletion
8,139,000
8,386,000
8,698,000
8,467,000
Depreciation And Amortization
8,139,000
8,386,000
8,698,000
8,467,000
Amortization Cash Flow
7,377,000
7,622,000
7,946,000
7,689,000
Amortization Of Intangibles
7,377,000
7,622,000
7,946,000
7,689,000
Depreciation
762,000
764,000
752,000
778,000
Operating Gains Losses
-172,000
-68,000
Gain Loss On Sale Of Business
0
0
-172,000
-68,000
Net Income From Continuing Operations
4,233,000
4,286,000
4,873,000
11,845,000
3/7
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
Negative book value — Graham's formula requires positive equity (BVPS). Common in companies with heavy buybacks (MCD, AAPL). Not a flaw in the business, but the formula cannot produce a fair value.
Margin of Safety
—
Market Cap / Net Assets
⚠ Negative Net Assets
Net Assets: -$3.2B
⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.
Warren's Owner Earnings
$13.6B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/7 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$61.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.67x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
3.05%
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $6.63 to $2.36 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-64.4% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
105.6x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
This company has negative book equity — meaning accumulated buybacks and dividends exceed retained earnings on paper. This is common in highly profitable, capital-return-focused businesses (e.g. Domino's, McDonald's, Home Depot) and does not indicate financial distress. P/B is not a meaningful valuation metric for these companies.
N/A (negative book value)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $61.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.67xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 3.05%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $6.63 to $2.36 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 105.6xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
This company has negative book equity — meaning accumulated buybacks and dividends exceed retained earnings on paper. This is common in highly profitable, capital-return-focused businesses (e.g. Domino's, McDonald's, Home Depot) and does not indicate financial distress. P/B is not a meaningful valuation metric for these companies.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what AbbVie Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-61.20
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
17.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
28.7%
22.8%
16.0%
5.9%
N/A
Repurchase of Capital Stock
-$980M
-$1.7B
-$2.0B
-$1.5B
N/A
Free Cash Flow
$17.8B▼
$17.8B▼
$22.1B▼
$24.2B•
N/A•
Warren's Owner Earnings
$13.6B
$13.6B
$14.3B
$21.0B
N/A
Peers & Industry
No auto-detected peers for Drug Manufacturers - General. You can manually compare ABBV against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.11%
Low — management has little skin in the game
Return on Assets (ROA)
3.2%
Fair — average asset utilization
Share Buybacks (Latest Year)
$980M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.5% YoY
Debt is roughly stable
Leadership Team
Robert Michael CPA
CEO & Chairman of the Board
Age 55
Pay: $7,416,293
0.175% of net income
Scott Reents
Executive VP & CFO
Age 57
Pay: $3,946,913
0.093% of net income
Azita Saleki-Gerhardt Ph.
Executive VP & COO
Age 62
Pay: $4,072,891
0.096% of net income
Elizabeth Shea
Senior Vice President of Investor Relations
Wulff-Erik von Borcke
Senior VP & President of Oncology
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.53%
150,698,125
Vanguard Capital Management LLC
6.50%
114,880,324
State Street Corporation
4.60%
81,217,516
JPMORGAN CHASE & CO
3.21%
56,741,691
Vanguard Portfolio Management LLC
2.80%
49,523,078
Geode Capital Management, LLC
2.65%
46,737,581
Morgan Stanley
2.15%
38,016,774
Capital Research Global Investors
1.77%
31,254,786
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.31
Low volatility — more stable than the market
Short Interest
1.5% of float
Low short interest — market is not heavily bearish
Current Ratio
0.80x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $181.73Current: $216.49High: $244.81
Currently at 55% of 52-week range
AbbVie Inc. (ABBV) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 70.2%. Operating margin: 32.8%. Net margin: 6.9%. Market cap: $382.5B. Sector: Healthcare. Industry: Drug Manufacturers - General. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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