ABB

Fundamental analysis
ABB is a Swedish-Swiss multinational company with headquarters in Zurich, Switzerland and Västerås, Sweden, formed by the merger of Asea of Sweden and Brown, Boveri & Cie of Switzerland. By combining the first letters of the original companies, the acronym and nowadays the brand ABB was created. The company is focused on electrical products and industry. The company is known for its robots for automating the production of other companies, especially the automotive industry. In 2023, the company delisted its shares from the American stock exchange and kept the shares for trading on the Stockholm and Zurich stock exchanges. In the US, the stock is traded on the OTC market under the ticker ABBNY. ABB expects to reduce the cost of servicing the share on fewer exchanges.
The company increases its turnover and profit regularly every year. This is mainly due to a high level of investment in robotics and improving the performance of other factories. And ABB is one of the main suppliers of the necessary components and robots. ABB has paid a dividend every year since 2011. The market focus is evenly distributed between Europe (Turnover of USD 2.95 billion), America (Turnover of USD 2.84 billion) and Asia + Africa (Turnover of USD 2.44 billion).
Results
For 2023, the company had sales of USD 8.2 billion, +5% compared to 2022.
Operating income was $1.1 billion with a high margin of 13.5%
The company has low debt of USD 1.991 billion.
The company expects growth of 5-7%.
Technical analysis
The stock is up 43% in 1 year. PE is 22.6. The moving averages have been in an uptrend since the end of 2023, however there was a touch in the fall of 2023. The trend has remained, but this situation shows us that the strength of the upside has been very, very small.
The RSI oscillates in the middle, giving us a neutral signal.
Conclusion
ABB is a large and stable company with a good product. The demand for its robots and other products and services is high. This is evidenced by the slow but steady growth in sales. The dividend is not great ($1 per share for 2023 at the current share price of $48 = 2.1% yield). But it is stable. A PE of 22 is a decent value. The company has increased revenue by 5% from 2022, but the share price has skyrocketed 43%. It’s hard to predict if growth will be this strong this year. Technical analysis tells us nothing about strong growth.