# ABB (ABBN.SW)

Canonical: https://gigainvestors.com/s/ABBN.SW

Analysis as of: 2026-10-16T07:33:34.844Z. Financial observations: FY1999–FY2025.

Listing currency: CHF. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CHF 76.20 per share; close as of 2026-10-15.

Estimated value: low CHF 24.18 per share, central CHF 27.19 per share, high CHF 31.19 per share. Buy at or below the central value CHF 27.19 per share. Valuation as of 2026-10-16T07:33:34.844Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CH 10-year bond 0.5% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.09×

- FY2017: 0.10×

- FY2018: 0.08×

- FY2019: 0.07×

- FY2020: 0.06×

- FY2021: 0.20×

- FY2022: 0.11×

- FY2023: 0.15×

- FY2024: 0.16×

- FY2025: 0.17×

### moat: pass

- ROIC, median of available years: 45.0%

- ROIC, second-lowest year: 15.8%

- Typical minus recent gross margin: -7.0 pp

- Typical gross margin (annual median): 32.3%

- Recent gross margin (lower of latest and 3-year median): 39.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 18.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 43.7%

- FY2017: 46.3%

- FY2018: 21.6%

- FY2019: 14.5%

- FY2020: 15.8%

- FY2021: 74.8%

- FY2022: 43.7%

- FY2023: 68.0%

- FY2024: 59.0%

- FY2025: 48.0%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $19B

- Net income, five-year total: $19B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 5.1 pp

- Working capital / revenue, final three-year average: 29.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.95×

- FY2023: 0.95×

- FY2024: 0.93×

- FY2025: 0.97×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 43.7% vs 59.0%

- Per-share earnings: 0.92 to 2.13 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.9%

- Ordinary dilution, 5-year annual growth: -2.5%

- Market cap gain: $77B

- Cumulative retained earnings: $2.6B

- Diluted shares, 10-year annual growth: -1.9%

- Diluted shares, 5-year annual growth: -2.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.1%

- Per-share value change: $1.21

- Per-share value, starting three-year median: $0.92

- Per-share value, ending three-year median: $2.13

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 2.8%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $32B

- ROIC, first three-year median: 43.7%

- ROIC, last three-year median: 59.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.92

- FY2017: $1.03

- FY2018: $1.02

- FY2019: $0.51

- FY2020: $2.48

- FY2021: $2.28

- FY2022: $1.32

- FY2023: $2.02

- FY2024: $2.13

- FY2025: $2.60

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.67×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.0%

- FY2017: -3.7%

- FY2018: -1.7%

- FY2019: -2.7%

- FY2020: 8.4%

- FY2021: 3.0%

- FY2022: 3.0%

- FY2023: -1.3%

- FY2024: -1.8%

- FY2025: -1.6%

## Holders

## Price story

Price needs cash profits to grow 14.7% a year for ten years · sales +8.6%

Story as of 2026-10-16T09:59:56.766Z; price observation 2026-10-15.

Price needs cash profits to grow 14.7% a year for ten years

- 2025-07-17: ABB posts highest ever order intake as Q2 beats forecasts ([finance.yahoo.com](https://finance.yahoo.com/news/abb-beats-forecasts-q2-earnings-045706459.html))

- 2025-09-16: ABB to Invest $110 Million in U.S. to Meet Data Center, Grid Demand ([finance.yahoo.com](https://finance.yahoo.com/m/3ea8c089-ded8-348b-80e3-98c1dec1e954/abb-to-invest-%24110-million-in.html))

- 2026-01-29: ABB Shares Climb After Record Revenue Beats Market Views ([finance.yahoo.com](https://finance.yahoo.com/m/bd6df3c7-a6b5-3548-a62e-f728d4da1b13/abb-shares-climb-after-record.html))

- 2026-02-06: ABB Taps Automation Extended And AI Data Centers For Growth ([finance.yahoo.com](https://finance.yahoo.com/news/abb-taps-automation-extended-ai-200624240.html))

- 2026-04-22: ABB Raises Outlook As Data Center Orders Jump 24% On AI Demand ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/abb-raises-outlook-data-center-172411051.html))

- 2026-05-25: ABB Leans Into Efficiency And AI As Valuation Stretches Above Targets ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/abb-leans-efficiency-ai-valuation-231132986.html))

### Sales · FY2024–2025

sales +8.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: $34B 

- FY2017: $34B 

- FY2018: $28B 

- FY2019: $28B 

- FY2020: $26B 

- FY2021: $29B 

- FY2022: $29B 

- FY2023: $32B 

- FY2024: $31B 

- FY2025: $33B 

### Gross margin · FY2025

gross margin 41.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 28.8% 

- FY2017: 29.9% 

- FY2018: 30.9% 

- FY2019: 31.8% 

- FY2020: 30.1% 

- FY2021: 32.7% 

- FY2022: 33.0% 

- FY2023: 34.8% 

- FY2024: 39.2% 

- FY2025: 41.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 33.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2025: revenue 33220000000; grossProfit 13640000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABBN.SW: ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments. Its Electrification segment offers renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Automation segment offers industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services for the process, hybrid and marine industries. This segment also provides control technologies; process, machine and factory automation; industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems; services such as remote monitoring, preventive maintenance, asset performance management, emission monitoring and cybersecurity. It serves oil, gas, renewables, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, space, power generation, water, marine, and ports industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.

### Why customers stay

Margins ranged from 34.8% to 41.1% during 2023–25; it earns 45% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2023: grossProfit / revenue = 34.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2024: grossProfit / revenue = 39.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2025: grossProfit / revenue = 41.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); 10-year return on capital observations [[2016,0.4372731929978305],[2017,0.4633144314799707],[2018,0.21630676413730773],[2019,0.14526060885608857],[2020,0.15757875513620453],[2021,0.7480158295548303],[2022,0.43692506195135294],[2023,0.6795250794735412],[2024,0.5898236681591041],[2025,0.4801773247826317]]; median 0.45029381223890064. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 4.1% of cash earnings on expansion; paid dividends in 9 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2016: growth capex 0; upkeep 831000000; owner earnings 2267000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2017: growth capex 0; upkeep 949000000; owner earnings 2365000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2018: growth capex 0; upkeep 772000000; owner earnings 2317000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2019: growth capex 0; upkeep 762000000; owner earnings 1084600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2020: growth capex 0; upkeep 694000000; owner earnings 5166800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2021: growth capex 0; upkeep 820000000; owner earnings 4435200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2022: growth capex 0; upkeep 762000000; owner earnings 2352800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2023: growth capex 0; upkeep 770000000; owner earnings 3572000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2024: growth capex 0; upkeep 845000000; owner earnings 3677800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2025: growth capex 188000000; upkeep 813000000; owner earnings 4576800000. Growth capex / owner earnings = 0.041076734836567035.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); Dividend observations: [[2016,0],[2017,1635000000],[2018,1717000000],[2019,1675000000],[2020,1736000000],[2021,1726000000],[2022,1698000000],[2023,1713000000],[2024,1769000000],[2025,1907000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); FY2025: cash repurchases 1499000000 USD.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABBN.SW SharesStats.PercentInsiders = 0.027999999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.7% yearly over ten years; actual growth was 9.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:34.844Z); Ten-year compound average after fade. Initial solved rate 0.19929306063971686. Price 76.2; FX 0.8276775368316505; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0063549704947798 → FY2025 2.5105869445968185. Closing-price date 2026-10-15.

## Monthly share-price history (CHF per share)

- 2016-10: CHF 19.69 per share

- 2016-11: CHF 20.00 per share

- 2016-12: CHF 20.73 per share

- 2017-01: CHF 22.61 per share

- 2017-02: CHF 21.93 per share

- 2017-03: CHF 22.61 per share

- 2017-04: CHF 23.51 per share

- 2017-05: CHF 23.48 per share

- 2017-06: CHF 22.85 per share

- 2017-07: CHF 21.91 per share

- 2017-08: CHF 21.43 per share

- 2017-09: CHF 23.10 per share

- 2017-10: CHF 25.17 per share

- 2017-11: CHF 24.31 per share

- 2017-12: CHF 25.21 per share

- 2018-01: CHF 25.04 per share

- 2018-02: CHF 22.26 per share

- 2018-03: CHF 21.93 per share

- 2018-04: CHF 22.43 per share

- 2018-05: CHF 21.51 per share

- 2018-06: CHF 20.95 per share

- 2018-07: CHF 21.92 per share

- 2018-08: CHF 22.05 per share

- 2018-09: CHF 22.38 per share

- 2018-10: CHF 19.59 per share

- 2018-11: CHF 19.51 per share

- 2018-12: CHF 18.04 per share

- 2019-01: CHF 18.29 per share

- 2019-02: CHF 19.08 per share

- 2019-03: CHF 18.06 per share

- 2019-04: CHF 20.24 per share

- 2019-05: CHF 17.73 per share

- 2019-06: CHF 18.91 per share

- 2019-07: CHF 18.15 per share

- 2019-08: CHF 18.10 per share

- 2019-09: CHF 18.93 per share

- 2019-10: CHF 19.97 per share

- 2019-11: CHF 21.11 per share

- 2019-12: CHF 22.55 per share

- 2020-01: CHF 21.72 per share

- 2020-02: CHF 20.08 per share

- 2020-03: CHF 16.41 per share

- 2020-04: CHF 17.69 per share

- 2020-05: CHF 18.23 per share

- 2020-06: CHF 20.59 per share

- 2020-07: CHF 21.98 per share

- 2020-08: CHF 22.17 per share

- 2020-09: CHF 22.63 per share

- 2020-10: CHF 21.47 per share

- 2020-11: CHF 23.13 per share

- 2020-12: CHF 23.85 per share

- 2021-01: CHF 25.42 per share

- 2021-02: CHF 25.21 per share

- 2021-03: CHF 27.56 per share

- 2021-04: CHF 28.62 per share

- 2021-05: CHF 29.60 per share

- 2021-06: CHF 30.30 per share

- 2021-07: CHF 31.97 per share

- 2021-08: CHF 32.74 per share

- 2021-09: CHF 30.30 per share

- 2021-10: CHF 29.23 per share

- 2021-11: CHF 30.78 per share

- 2021-12: CHF 33.68 per share

- 2022-01: CHF 30.60 per share

- 2022-02: CHF 30.06 per share

- 2022-03: CHF 29.12 per share

- 2022-04: CHF 28.57 per share

- 2022-05: CHF 28.36 per share

- 2022-06: CHF 24.57 per share

- 2022-07: CHF 27.77 per share

- 2022-08: CHF 26.03 per share

- 2022-09: CHF 24.90 per share

- 2022-10: CHF 27.84 per share

- 2022-11: CHF 29.36 per share

- 2022-12: CHF 28.06 per share

- 2023-01: CHF 31.75 per share

- 2023-02: CHF 31.28 per share

- 2023-03: CHF 31.37 per share

- 2023-04: CHF 32.12 per share

- 2023-05: CHF 33.26 per share

- 2023-06: CHF 35.18 per share

- 2023-07: CHF 34.86 per share

- 2023-08: CHF 33.69 per share

- 2023-09: CHF 32.80 per share

- 2023-10: CHF 30.44 per share

- 2023-11: CHF 34.71 per share

- 2023-12: CHF 37.30 per share

- 2024-01: CHF 36.69 per share

- 2024-02: CHF 40.72 per share

- 2024-03: CHF 41.89 per share

- 2024-04: CHF 44.89 per share

- 2024-05: CHF 49.40 per share

- 2024-06: CHF 49.92 per share

- 2024-07: CHF 48.78 per share

- 2024-08: CHF 48.63 per share

- 2024-09: CHF 48.99 per share

- 2024-10: CHF 47.90 per share

- 2024-11: CHF 50.28 per share

- 2024-12: CHF 49.07 per share

- 2025-01: CHF 49.95 per share

- 2025-02: CHF 48.31 per share

- 2025-03: CHF 45.22 per share

- 2025-04: CHF 43.19 per share

- 2025-05: CHF 46.54 per share

- 2025-06: CHF 47.31 per share

- 2025-07: CHF 53.52 per share

- 2025-08: CHF 53.68 per share

- 2025-09: CHF 57.32 per share

- 2025-10: CHF 59.66 per share

- 2025-11: CHF 57.72 per share

- 2025-12: CHF 59.22 per share

- 2026-01: CHF 66.66 per share

- 2026-02: CHF 71.82 per share

- 2026-03: CHF 63.24 per share

- 2026-04: CHF 78.44 per share

- 2026-05: CHF 83.62 per share

- 2026-06: CHF 87.58 per share

- 2026-07: CHF 79.52 per share

- 2026-08: CHF 79.00 per share

- 2026-09: CHF 79.42 per share

- 2026-10: CHF 76.20 per share

## Annual estimated value (CHF per share)

- FY2016: low CHF 11.77 per share, central CHF 13.12 per share, high CHF 14.93 per share

- FY2017: low CHF 11.85 per share, central CHF 13.22 per share, high CHF 15.05 per share

- FY2018: low CHF 9.47 per share, central CHF 10.59 per share, high CHF 12.07 per share

- FY2019: low CHF 9.31 per share, central CHF 10.40 per share, high CHF 11.86 per share

- FY2020: low CHF 9.81 per share, central CHF 10.90 per share, high CHF 12.34 per share

- FY2021: low CHF 12.98 per share, central CHF 14.50 per share, high CHF 16.52 per share

- FY2022: low CHF 13.75 per share, central CHF 15.39 per share, high CHF 17.56 per share

- FY2023: low CHF 19.72 per share, central CHF 22.12 per share, high CHF 25.31 per share

- FY2024: low CHF 20.23 per share, central CHF 22.70 per share, high CHF 26.00 per share

- FY2025: low CHF 22.53 per share, central CHF 25.26 per share, high CHF 28.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:20.205Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.