PFIZER INC (PFE)
US7170811035 - Common Stock
Overall PFE gets a fundamental rating of 5 out of 10. We evaluated PFE against 197 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are quite some concerns on its financial health. PFE has a bad growth rate and is valued cheaply. Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
In the past year PFE had a positive cash flow from operations.
Each year in the past 5 years PFE has been profitable.
PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFE has a Return On Assets of 0.94%. This is amongst the best in the industry. PFE outperforms 84.10% of its industry peers.
PFE has a better Return On Equity (2.38%) than 84.62% of its industry peers.
PFE's Return On Invested Capital of 6.09% is amongst the best of the industry. PFE outperforms 87.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is below the industry average of 18.24%.
The 3 year average ROIC (15.85%) for PFE is well above the current ROIC(6.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 2.38% | ||
| ROIC | 6.09% |
ROA(3y)9.65%
ROA(5y)8.98%
ROE(3y)21.22%
ROE(5y)20.92%
ROIC(3y)15.85%
ROIC(5y)12.33%
1.3 Margins
With an excellent Profit Margin value of 3.62%, PFE belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
PFE has a better Operating Margin (21.51%) than 89.23% of its industry peers.
PFE's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 68.77%, PFE is doing good in the industry, outperforming 71.28% of the companies in the same industry.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.51% | ||
| PM (TTM) | 3.62% | ||
| GM | 68.77% |
OM growth 3Y-7.14%
OM growth 5Y0.91%
PM growth 3Y-45.95%
PM growth 5Y-33.24%
GM growth 3Y-4.36%
GM growth 5Y-2.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PFE is creating value.
PFE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFE has less shares outstanding
The debt/assets ratio for PFE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE's Altman-Z score of 1.86 is fine compared to the rest of the industry. PFE outperforms 68.21% of its industry peers.
PFE has a debt to FCF ratio of 15.00. This is a negative value and a sign of low solvency as PFE would need 15.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 15.00, PFE belongs to the best of the industry, outperforming 80.51% of the companies in the same industry.
PFE has a Debt/Equity ratio of 0.78. This is a neutral value indicating PFE is somewhat dependend on debt financing.
PFE's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. PFE is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 15 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.73
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PFE may have some problems paying its short term obligations.
The Current ratio of PFE (0.91) is worse than 89.23% of its industry peers.
PFE has a Quick Ratio of 0.91. This is a bad value and indicates that PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.69, PFE is not doing good in the industry: 88.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PFE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.06%.
Measured over the past years, PFE shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.41% on average per year.
The Revenue for PFE has decreased by -40.73% in the past year. This is quite bad
PFE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.46% yearly.
EPS 1Y (TTM)-77.06%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)-40.73%
Revenue growth 3Y11.76%
Revenue growth 5Y7.46%
Revenue growth Q2Q-18.61%
3.2 Future
Based on estimates for the next years, PFE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
Based on estimates for the next years, PFE will show a small growth in Revenue. The Revenue will grow by 1.17% on average per year.
EPS Next Y21.37%
EPS Next 2Y23.44%
EPS Next 3Y16.82%
EPS Next 5Y9.66%
Revenue Next Year2.14%
Revenue Next 2Y3.5%
Revenue Next 3Y2.6%
Revenue Next 5Y1.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.17, the valuation of PFE can be described as rather expensive.
Based on the Price/Earnings ratio, PFE is valued cheaper than 85.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, PFE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.27, the valuation of PFE can be described as reasonable.
88.21% of the companies in the same industry are more expensive than PFE, based on the Price/Forward Earnings ratio.
PFE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 85.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.84 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PFE has a very decent profitability rating, which may justify a higher PE ratio.
PFE's earnings are expected to grow with 16.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y23.44%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, PFE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.04, PFE pays a better dividend. On top of this PFE pays more dividend than 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.78%.
PFE has paid a dividend for at least 10 years, which is a reliable track record.
PFE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.78%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
436.39% of the earnings are spent on dividend by PFE. This is not a sustainable payout ratio.
PFE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP436.39%
EPS Next 2Y23.44%
EPS Next 3Y16.82%
PFIZER INC
NYSE:PFE (5/17/2024, 7:19:28 PM)
After market: 28.69 +0.05 (+0.17%)28.64
-0.28 (-0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap162.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 10.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 2.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.51% | ||
| PM (TTM) | 3.62% | ||
| GM | 68.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-77.06%
EPS 3Y-12.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-40.73%
Revenue growth 3Y11.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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