Is It Time To Buy AbbVie Stock At $180?

Core Viewpoint - AbbVie has received FDA approval for Emrelis, a drug for lung cancer patients, contributing to a nearly 10% stock increase over the past six months, outperforming the S&P Healthcare index which declined by 8% [1] Group 1: Drug Performance and Growth - AbbVie's immunology portfolio, particularly Skyrizi and Rinvoq, has shown significant year-over-year growth of 71% and 57% respectively in Q1 2025, following a 50% growth in the previous year [2] - AbbVie's quarterly revenues grew by 8.4% to $13.3 billion from $12.3 billion a year ago, compared to a 4.9% improvement for the S&P 500 [8] Group 2: Financial Metrics and Valuation - AbbVie has a price-to-sales (P/S) ratio of 5.6, a price-to-free cash flow (P/FCF) ratio of 20.9, and a price-to-earnings (P/E) ratio of 77.6, all significantly higher than the S&P 500 [8] - The company has seen its top line grow at an average rate of 0.2% over the last three years, while the S&P 500 increased by 6.2% [8] - AbbVie's adjusted net income margin stands at 32%, with an adjusted P/E ratio of 18x based on trailing earnings of $10.27 per share, indicating a premium valuation justified by growth [12][13] Group 3: Financial Stability and Resilience - AbbVie's balance sheet is considered weak, with a debt figure of $70 billion against a market capitalization of $321 billion, resulting in a moderate debt-to-equity ratio of 21.8% [14] - The company has demonstrated strong resilience during downturns, outperforming the S&P 500 in recent market declines [10][15]