PFIZER INC (1PFE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PFE - US7170811035 - Common Stock
21.73 EUR
-0.07 (-0.34%)
1PFE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
- 1PFE had positive earnings in the past year.
- In the past year 1PFE had a positive cash flow from operations.
- In the past 5 years 1PFE has always been profitable.
- 1PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 4.71%, 1PFE perfoms like the industry average, outperforming 41.82% of the companies in the same industry.
- 1PFE has a Return On Equity (10.59%) which is comparable to the rest of the industry.
- 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.
- 1PFE had an Average Return On Invested Capital over the past 3 years of 10.72%. This 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
- With a decent Profit Margin value of 15.65%, 1PFE is doing good in the industry, outperforming 63.64% 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 74.55% of its industry peers.
- 1PFE's Operating Margin has improved in the last couple of years.
- 1PFE has a better Gross Margin (74.95%) than 72.73% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PFE is still creating some value.
- 1PFE has more shares outstanding than it did 1 year ago.
- 1PFE has more shares outstanding than it did 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.
- The Altman-Z score of 1PFE (2.22) is comparable to the rest of the 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.
- 1PFE has a Debt to FCF ratio (5.95) which is in line with its industry peers.
- 1PFE has a Debt/Equity ratio of 0.62. This is a neutral value indicating 1PFE is somewhat dependend on debt financing.
- 1PFE has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.92
WACC8.67%
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.
- 1PFE has a Current ratio (1.28) which is in line with its industry peers.
- A Quick Ratio of 0.97 indicates that 1PFE may have some problems paying its short term obligations.
- 1PFE has a Quick ratio (0.97) which is comparable to the rest of the 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.
- 1PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
- 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
- The Earnings Per Share is expected to decrease by -5.87% on average over the next years.
- 1PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.45% yearly.
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
- Based on the Price/Earnings ratio of 8.05, the valuation of 1PFE can be described as reasonable.
- 1PFE's Price/Earnings ratio is rather cheap when compared to the industry. 1PFE is cheaper than 96.36% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1PFE is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.52 indicates a reasonable valuation of 1PFE.
- 96.36% of the companies in the same industry are more expensive than 1PFE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1PFE to the average of the S&P500 Index (25.98), we can say 1PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
- 1PFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1PFE is cheaper than 85.45% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| EV/EBITDA | 7.18 |
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.
- A cheap valuation may be justified as 1PFE's earnings are expected to decrease with -2.28% in the coming years.
PEG (NY)5.89
PEG (5Y)7.58
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 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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%.