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A look at a High Market Cap Stock: ABB Ltd., ABB

ABB Ltd., ABB is in the exchange NYSE and its industry is Diversified Machinery in the sector of Industrial Goods. Based in Switzerland, ABB Ltd., ABB  has a market cap of 43076.5. Since its IPO date on the 4/6/2001, ABB Ltd., ABB performance year to date is 10.96%. Today ABB Ltd., ABB has gained 2.59%, with a current price of 19.39.

Ownership of the company is *TBA for insider ownership while institutional ownership is 3.50%. The management of the company have seen the company have a payout ratio of 87.50%. Return of assets are at 4.50%, with return on investment at 10.30%.

In terms of debt levels and profit levels, ABB Ltd., ABB is seeing a long-term debt/equity of 0.41. While Total debt/equity is 0.52. With a profit margin of 5.40%, this is combined with a gross margin of 28.70%, and operating margin of 8.50%. ABB Ltd. ability to meet debt levels, with a current ratio of 1.5, while the quick ratio is 1.1.

For the last year ABB Ltd., ABB has seen a EPS growth of -22.70%. A performance for the year of -0.81%. The 52-week high is -6.73%, and the 52-week low is 28.23%. The average volume for ABB Ltd., ABB is 13942.

With a target price of 20.61, can ABB Ltd., ABB reach this target? Looking at the value indicators of ABB Ltd., ABB. ABB Ltd. has a P/E of 22.37 and a forward P/E of 15.39. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.48. ABB Ltd. also has a P/S and a P/B of 1.24 and 2.78 respectively. For P/cash, ABB Ltd. has a value of 7.11, while it is 13.69 for P/free cash flow.

At the current price of 19.39, ABB Ltd. has a dividend yield of 4.02%. We see a return on equity of 12.80%.

Looking more long-term ABB Ltd., is projected to get an EPS growth for the next five years of 6.43%. In the short-term an EPS growth of 19.46% in the next year is forecasted. This is after a EPS growth of -22.70% for this year and for the last five years a -4.90% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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