PFIZER INC (1PFE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PFE - US7170811035 - Common Stock
21.805 EUR
-0.09 (-0.41%)
1PFE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. 1PFE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1PFE is cheap, but on the other hand it scores bad on growth.
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.
- Each year in the past 5 years 1PFE has been profitable.
- In the past 5 years 1PFE always reported a positive cash flow from operatings.
1.2 Ratios
- 1PFE has a Return On Assets of 4.71%. This is comparable to the rest of the industry: 1PFE outperforms 43.64% of its industry peers.
- 1PFE has a Return On Equity (10.59%) which is in line with its industry peers.
- 1PFE's Return On Invested Capital of 7.96% is in line compared to the rest of the industry. 1PFE outperforms 50.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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.
- 1PFE's Profit Margin has declined in the last couple of years.
- 1PFE has a better Operating Margin (29.12%) than 74.55% of its industry peers.
- 1PFE's Operating Margin has improved in the last couple of years.
- 1PFE has a Gross Margin of 74.95%. This is in the better half of the industry: 1PFE outperforms 74.55% of its industry peers.
- 1PFE's Gross Margin has declined in the last couple of years.
| 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
- 1PFE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- 1PFE has a better debt/assets ratio than last year.
2.2 Solvency
- 1PFE has an Altman-Z score of 2.22. This is not the best score and indicates that 1PFE is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.22, 1PFE is doing worse than 60.00% of the companies in the same industry.
- The Debt to FCF ratio of 1PFE is 5.95, which is a neutral value as it means it would take 1PFE, 5.95 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1PFE (5.95) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.62 indicates that 1PFE is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, 1PFE perfoms like the industry average, outperforming 50.91% 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
- 1PFE has a Current Ratio of 1.28. This is a normal value and indicates that 1PFE is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of 1PFE (1.28) is comparable to the rest of the industry.
- A Quick Ratio of 0.97 indicates that 1PFE may have some problems paying its short term obligations.
- With a Quick ratio value of 0.97, 1PFE perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.03% over the past year.
- The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
- 1PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
- 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.
- Based on estimates for the next years, 1PFE will show a decrease in Revenue. The Revenue will decrease by -3.45% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.99, the valuation of 1PFE can be described as very cheap.
- Based on the Price/Earnings ratio, 1PFE is valued cheaper than 98.18% of the companies in the same industry.
- 1PFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- 1PFE is valuated reasonably with a Price/Forward Earnings ratio of 8.48.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 98.18% of the companies listed in the same industry.
- 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 87.27% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1PFE is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
- A cheap valuation may be justified as 1PFE's earnings are expected to decrease with -2.28% in the coming years.
PEG (NY)5.85
PEG (5Y)7.52
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.59%, 1PFE is a good candidate for dividend investing.
- 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.
- 1PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- 1PFE pays out 98.76% of its income as dividend. 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%.