PFIZER INC (1PFE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PFE - US7170811035 - Common Stock
21.805 EUR
-0.09 (-0.41%)
Overall 1PFE gets a fundamental rating of 4 out of 10. We evaluated 1PFE against 55 industry peers in the Pharmaceuticals industry. While 1PFE is still in line with the averages on profitability rating, there are concerns on its financial health. 1PFE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year 1PFE was profitable.
- In the past year 1PFE had a positive cash flow from operations.
- In the past 5 years 1PFE has always been profitable.
- Each year in the past 5 years 1PFE had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 4.71%, 1PFE perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
- 1PFE has a Return On Equity (10.59%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 7.96%, 1PFE perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1PFE is below the industry average of 14.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 10.59% | ||
| ROIC | 7.96% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)10.72%
ROIC(5y)10.58%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.65%, 1PFE is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1PFE has declined.
- The Operating Margin of 1PFE (29.12%) is better than 76.36% of its industry peers.
- In the last couple of years the Operating Margin of 1PFE has grown nicely.
- 1PFE has a better Gross Margin (74.95%) than 74.55% of its industry peers.
- In the last couple of years the Gross Margin of 1PFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.12% | ||
| PM (TTM) | 15.65% | ||
| GM | 74.95% |
OM growth 3Y-8.1%
OM growth 5Y3.31%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.09%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1PFE is creating some value.
- 1PFE has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1PFE has been increased compared to 5 years ago.
- Compared to 1 year ago, 1PFE has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.22 indicates that 1PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1PFE's Altman-Z score of 2.22 is on the low side compared to the rest of the industry. 1PFE is outperformed by 60.00% of its industry peers.
- 1PFE has a debt to FCF ratio of 5.95. This is a neutral value as 1PFE would need 5.95 years to pay back of all of its debts.
- 1PFE has a Debt to FCF ratio of 5.95. This is comparable to the rest of the industry: 1PFE outperforms 54.55% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that 1PFE is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.62, 1PFE is in line with its industry, outperforming 49.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.92
WACC8.68%
2.3 Liquidity
- A Current Ratio of 1.28 indicates that 1PFE should not have too much problems paying its short term obligations.
- 1PFE has a Current ratio (1.28) which is comparable to the rest of the industry.
- 1PFE has a Quick Ratio of 1.28. This is a bad value and indicates that 1PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.97, 1PFE is in line with its industry, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- 1PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.03%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
- Looking at the last year, 1PFE shows a small growth in Revenue. The Revenue has grown by 3.90% in the last year.
- The Revenue has been growing by 9.10% on average over the past years. This is quite good.
EPS 1Y (TTM)24.03%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%-17.92%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-5.92%
3.2 Future
- Based on estimates for the next years, 1PFE will show a decrease in Earnings Per Share. The EPS will decrease by -5.87% on average per year.
- The Revenue is expected to decrease by -3.45% on average over the next years.
EPS Next Y1.37%
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
EPS Next 5Y-5.87%
Revenue Next Year-1.63%
Revenue Next 2Y-1.63%
Revenue Next 3Y-2.12%
Revenue Next 5Y-3.45%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 7.99, the valuation of 1PFE can be described as very cheap.
- 1PFE's Price/Earnings ratio is rather cheap when compared to the industry. 1PFE is cheaper than 98.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1PFE is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.48, the valuation of 1PFE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 1PFE is valued cheaply inside the industry as 98.18% of the companies are valued more expensively.
- 1PFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
- 87.27% of the companies in the same industry are more expensive than 1PFE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 83.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.03 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PFE does not grow enough to justify the current Price/Earnings ratio.
- 1PFE's earnings are expected to decrease with -2.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)5.85
PEG (5Y)7.52
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
5. Dividend
5.1 Amount
- 1PFE has a Yearly Dividend Yield of 6.59%, which is a nice return.
- 1PFE's Dividend Yield is rather good when compared to the industry average which is at 1.62. 1PFE pays more dividend than 98.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 1PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
- The dividend of 1PFE has a limited annual growth rate of 3.30%.
Dividend Growth(5Y)3.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 98.76% of the earnings are spent on dividend by 1PFE. This is not a sustainable payout ratio.
- 1PFE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP98.76%
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
PFIZER INC / 1PFE.MI FAQ
What is the ChartMill fundamental rating of PFIZER INC (1PFE.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1PFE.MI.
What is the valuation status of PFIZER INC (1PFE.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to PFIZER INC (1PFE.MI). This can be considered as Undervalued.
What is the profitability of 1PFE stock?
PFIZER INC (1PFE.MI) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for 1PFE stock?
The Earnings per Share (EPS) of PFIZER INC (1PFE.MI) is expected to grow by 1.37% in the next year.
How sustainable is the dividend of PFIZER INC (1PFE.MI) stock?
The dividend rating of PFIZER INC (1PFE.MI) is 6 / 10 and the dividend payout ratio is 98.76%.