NYSE · Healthcare

Abbott Laboratories

ABT · Medical Devices

$88.41

▼ -0.09 (-0.1%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 56.2%

Operating Margin 12.0%

Net Income Margin 9.6%

Fin. Health

D⤢

Years to Pay Off Debt 31.6 yrs

Working Capital vs Long-Term Debt -$22.5B

Working Capital $7.1B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.96x

Cash Flow

B⤢

Free Cash Flow $916M

CapEx % of Net Income 37.0%

Owner Earnings $2.3B

Profitability

Gross Profit Margin 56.2%

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 12.0%

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 9.6%

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

Years to Pay Off Debt 31.6 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 -$22.5B

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 $7.1B

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.

Cash Flow

Free Cash Flow $916M

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 37.0%

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 $2.3B

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.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.

Market Data

Market Cap $154.0B

Enterprise Value $185.3B

P/E (TTM) 24.76

Dividend Yield 2.76%

Exchange NYSE

Key Margins

Gross Profit 56.2%

Operating Margin 12.0%

Net Margin 9.6%

Company Info

Sector Healthcare

Industry Medical Devices

Employees 122000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Abbott Laboratories at $88.41.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $88.41, the stock trades at a 337% premium to its Graham Number of $20.25. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

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	Q1 2026	Q4 2025
Gross Profit %	56.2%▼	57.0%
Operating Margin %	12.0%▼	19.6%
Net Income %	9.6%▼	15.5%
Diluted EPS	0.61▼	1.01

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$110.4B	$86.7B	N/A
Total Debt	$34.0B▲	$13.9B•	N/A
Working Capital	$7.1B▼	$9.5B•	N/A
Years to Pay Debt	31.61	7.80	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$916M▼	$2.6B•	N/A
Owner Earnings	$2.3B	$3.3B	N/A
CapEx % of Net Income	37.0%	38.8%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	3,337	3,702
Tax Rate For Calcs	0	0
Normalized EBITDA	2,413,000	3,255,000
Total Unusual Items	13,000	15,000
Total Unusual Items Excluding Goodwill	13,000	15,000
Net Income From Continuing Operation Net Minority Interest	1,077,000	1,776,000
Reconciled Depreciation	803,000	792,000
Reconciled Cost Of Revenue	4,509,000	4,552,000
EBITDA	2,426,000	3,270,000
EBIT	1,623,000	2,478,000
Net Interest Income	-68,000	-42,000
Interest Expense	174,000	120,000
Interest Income	106,000	78,000
Normalized Income	1,067,337	1,764,702
Net Income From Continuing And Discontinued Operation	1,077,000	1,776,000
Total Expenses	9,819,000	9,208,000
Total Operating Income As Reported	1,345,000	2,251,000
Diluted Average Shares	1,747,000	1,747,000
Basic Average Shares	1,741,813	1,736,599
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,077,000	1,776,000
Net Income Common Stockholders	1,077,000	1,776,000
Net Income	1,077,000	1,776,000
Net Income Including Noncontrolling Interests	1,077,000	1,776,000
Net Income Continuous Operations	1,077,000	1,776,000
Tax Provision	372,000	582,000
Pretax Income	1,449,000	2,358,000
Other Income Expense	172,000	149,000
Other Non Operating Income Expenses	159,000	134,000
Gain On Sale Of Security	13,000	15,000
Net Non Operating Interest Income Expense	-68,000	-42,000
Interest Expense Non Operating	174,000	120,000
Interest Income Non Operating	106,000	78,000
Operating Income	1,345,000	2,251,000
Operating Expense	4,929,000	4,286,000
Depreciation Amortization Depletion Income Statement	422,000	422,000
Depreciation And Amortization In Income Statement	422,000	422,000
Amortization	422,000	422,000
Amortization Of Intangibles Income Statement	422,000	422,000
Research And Development	767,000	735,000
Selling General And Administration	3,740,000	3,129,000
Gross Profit	6,274,000	6,537,000
Cost Of Revenue	4,890,000	4,922,000
Total Revenue	11,164,000	11,459,000
Operating Revenue	11,164,000	11,459,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	256,421	260,196
Ordinary Shares Number	1,741,813	1,736,599
Share Issued	1,998,234	1,996,796
Net Debt	27,244,000	4,407,000
Total Debt	34,047,000	13,860,000
Tangible Book Value	-1,035,000	22,569,000
Invested Capital	86,108,000	65,059,000
Working Capital	7,131,000	9,500,000
Net Tangible Assets	-1,035,000	22,569,000
Capital Lease Obligations		931,000	896,000
Common Stock Equity	52,061,000	52,130,000
Total Capitalization	81,699,000	62,026,000
Total Equity Gross Minority Interest	52,701,000	52,771,000
Minority Interest	640,000	641,000
Stockholders Equity	52,061,000	52,130,000
Gains Losses Not Affecting Retained Earnings	-6,312,000	-6,001,000
Other Equity Adjustments	-6,312,000	-6,001,000
Treasury Stock	16,935,000	17,177,000
Retained Earnings	49,956,000	49,781,000
Capital Stock	25,352,000	25,527,000
Common Stock	25,352,000	25,527,000
Total Liabilities Net Minority Interest	57,728,000	33,942,000
Total Non Current Liabilities Net Minority Interest	39,351,000	17,446,000
Other Non Current Liabilities	9,713,000	2,538,000
Employee Benefits		2,125,000	1,880,000
Non Current Pension And Other Postretirement Benefit Plans		2,125,000	1,880,000
Tradeand Other Payables Non Current		1,397,000	857,000
Non Current Deferred Liabilities		559,000	512,000
Non Current Deferred Taxes Liabilities		559,000	512,000
Long Term Debt And Capital Lease Obligation	29,638,000	10,827,000
Long Term Capital Lease Obligation		931,000	896,000
Long Term Debt	29,638,000	9,896,000
Current Liabilities	18,377,000	16,496,000
Current Debt And Capital Lease Obligation	4,409,000	3,033,000
Current Debt	4,409,000	3,033,000
Payables And Accrued Expenses	13,968,000	13,463,000
Current Accrued Expenses	7,591,000	6,875,000
Payables	6,377,000	6,588,000
Other Payable		682,000	621,000
Dividends Payable	1,100,000	1,097,000
Total Tax Payable	598,000	569,000
Income Tax Payable	598,000	569,000
Accounts Payable	4,679,000	4,240,000
Total Assets	110,429,000	86,713,000
Total Non Current Assets	84,921,000	60,717,000
Other Non Current Assets	18,358,000	18,422,000
Investments And Advances	1,090,000	918,000
Other Investments	363,000	321,000
Investmentin Financial Assets	727,000	597,000
Available For Sale Securities	727,000	597,000
Goodwill And Other Intangible Assets	53,096,000	29,561,000
Other Intangible Assets	17,875,000	5,526,000
Goodwill	35,221,000	24,035,000
Net PPE	12,377,000	11,816,000
Accumulated Depreciation	-13,360,000	-13,406,000
Gross PPE	25,737,000	25,222,000
Construction In Progress		2,567,000	2,488,000
Other Properties		17,571,000	15,517,000
Buildings And Improvements		4,543,000	4,207,000
Land And Improvements		541,000	528,000
Current Assets	25,508,000	25,996,000
Inventory	6,989,000	6,488,000
Finished Goods	4,274,000	3,976,000
Work In Process	994,000	904,000
Raw Materials	1,721,000	1,608,000
Receivables	11,224,000	10,569,000
Other Receivables	3,014,000	2,640,000
Accounts Receivable	8,210,000	7,929,000
Allowance For Doubtful Accounts Receivable	-494,000	-490,000
Gross Accounts Receivable	8,704,000	8,419,000
Cash Cash Equivalents And Short Term Investments	7,295,000	8,939,000
Other Short Term Investments	492,000	417,000
Cash And Cash Equivalents	6,803,000	8,522,000

Cash Flow

	2026	2025
Free Cash Flow	916,000	2,626,000
Repurchase Of Capital Stock	-180,000	-302,000
Repayment Of Debt	-1,416,000	-1,000
Issuance Of Debt	19,860,000	2,000
Capital Expenditure	-399,000	-689,000
End Cash Position	6,803,000	8,522,000
Beginning Cash Position	8,522,000	7,511,000
Effect Of Exchange Rate Changes	-23,000	6,000
Changes In Cash	-1,696,000	1,005,000
Financing Cash Flow	17,313,000	-1,397,000
Cash Flow From Continuing Financing Activities	17,313,000	-1,397,000
Proceeds From Stock Option Exercised	116,000	5,000
Cash Dividends Paid	-1,098,000	-1,030,000
Common Stock Dividend Paid	-1,098,000	-1,030,000
Net Common Stock Issuance	-180,000	-302,000
Common Stock Payments	-180,000	-302,000
Net Issuance Payments Of Debt	18,475,000	-70,000
Net Short Term Debt Issuance	31,000	-71,000
Net Long Term Debt Issuance	18,444,000	1,000
Long Term Debt Payments	-1,416,000	-1,000
Long Term Debt Issuance	19,860,000	2,000
Investing Cash Flow	-20,324,000	-913,000
Cash Flow From Continuing Investing Activities	-20,324,000	-913,000
Net Other Investing Changes	34,000	6,000
Net Investment Purchase And Sale	-161,000	-210,000
Net Business Purchase And Sale	-19,798,000	-20,000
Purchase Of Business	-19,798,000	-20,000
Net PPE Purchase And Sale	-399,000	-689,000
Purchase Of PPE	-399,000	-689,000
Operating Cash Flow	1,315,000	3,315,000
Cash Flow From Continuing Operating Activities	1,315,000	3,315,000
Change In Working Capital	-462,000	110,000
Change In Inventory	-420,000	234,000
Change In Receivables	-42,000	222,000
Changes In Account Receivables	-42,000	222,000
Other Non Cash Items	-420,000
Stock Based Compensation	317,000	113,000
Depreciation Amortization Depletion	803,000	792,000
Depreciation And Amortization	803,000	792,000
Amortization Cash Flow	422,000	422,000
Amortization Of Intangibles	422,000	422,000
Depreciation	381,000	370,000
Net Income From Continuing Operations	1,077,000	1,776,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $10.4B ▲ $11.2B +7.8%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 56.9% ▲ 56.2% -0.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 13.0% ▼ 12.0% -0.9pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 12.8% ▼ 9.6% -3.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$11.2B/qtr (≈$44.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.39x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$916M

vs Positive

Operating Cash Flow

$1.3B

Latest quarter · Buffett's cash reality check

ROIC

1.2%

Based on latest annual operating income

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.

Market Cap / Net Assets

2.9x

Net Assets: $52.7B

Peers & Industry Comparison

Medical Devices — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
ABT	$88.41	$154.0B	24.76	56.2%	9.6%	$11.2B
MDT Medtronic plc.	$79.34	$101.9B	21.0	65.4%	13.2%	$36.4B
SYK Stryker Corporation	$307.80	$118.0B	35.7	64.7%	13.2%	$25.3B
BSX Boston Scientific Corporation	$45.29	$67.3B	18.9	68.9%	17.3%	$20.6B
EW Edwards Lifesciences Corporatio	$87.36	$50.3B	47.2	77.9%	17.4%	$6.3B

"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

0.50%

Low — management has little skin in the game

Return on Equity (ROE)

2.1%

Weak — poor returns on equity

Return on Assets (ROA)

1.0%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$893M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+145.6% YoY

Debt is growing — management is leveraging up

Leadership Team

Philip Boudreau

CFO & Executive VP of Finance

Age 52

Pay: $2,104,049

0.195% of net income

Daniel Gesua Sive Salvadori

Executive VP and Group President of Established Pharmaceuticals & Nutritional Products

Age 46

Pay: $1,524,932

0.142% of net income

Christopher Scoggins

Executive Vice President of Diabetes Care

Age 55

Pay: $2,063,245

0.192% of net income

Lisa Earnhardt

Executive VP & Group President of Medical Devices

Age 55

Pay: $2,386,584

0.222% of net income

Michael Comilla

Vice President of Investor Relations.

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.36%	145,687,458
Vanguard Capital Management LLC	6.48%	112,949,933
State Street Corporation	4.57%	79,575,468
Capital Research Global Investors	2.86%	49,775,362
Vanguard Portfolio Management LLC	2.75%	47,944,891
Charles Schwab Investment Management, Inc.	2.61%	45,500,055
Geode Capital Management, LLC	2.25%	39,148,795
Capital International Investors	2.15%	37,498,227

Risk Analysis

Beta (Market Risk)

0.62

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.65x

Conservative balance sheet — low financial risk

Current Ratio

1.39x

Adequate liquidity

52-Week Price Range

Low: $81.97 Current: $88.41 High: $139.06

Currently at 11% of 52-week range

Abbott Laboratories

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis