PFIZER INC (1PFE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PFE - US7170811035 - Common Stock
21.895 EUR
+0.07 (+0.3%)
We assign a fundamental rating of 4 out of 10 to 1PFE. 1PFE was compared to 54 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.
- Each year in the past 5 years 1PFE has been profitable.
- 1PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1PFE has a Return On Assets of 4.71%. This is comparable to the rest of the industry: 1PFE outperforms 44.44% of its industry peers.
- 1PFE has a Return On Equity of 10.59%. This is comparable to the rest of the industry: 1PFE outperforms 51.85% of its industry peers.
- 1PFE has a Return On Invested Capital (7.96%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1PFE is below the industry average of 13.93%.
| 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 64.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1PFE has declined.
- 1PFE has a Operating Margin of 29.12%. This is in the better half of the industry: 1PFE outperforms 75.93% of its industry peers.
- In the last couple of years the Operating Margin of 1PFE has grown nicely.
- The Gross Margin of 1PFE (74.95%) is better than 74.07% 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.
- 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.
- The Altman-Z score of 1PFE (2.22) is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of 1PFE (5.95) is comparable to the rest of the industry.
- 1PFE has a Debt/Equity ratio of 0.62. This is a neutral value indicating 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 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.91
WACC8.73%
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 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 50.00% 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.
- The Revenue has been growing slightly by 3.90% in the past 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
- 1PFE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.87% yearly.
- 1PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.45% yearly.
EPS Next Y1.34%
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
EPS Next 5Y-5.87%
Revenue Next Year-1.45%
Revenue Next 2Y-1.57%
Revenue Next 3Y-2.05%
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
- 1PFE is valuated reasonably with a Price/Earnings ratio of 8.02.
- Compared to the rest of the industry, the Price/Earnings ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 98.15% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. 1PFE is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.44, the valuation of 1PFE can be described as very reasonable.
- 1PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1PFE is cheaper than 96.30% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1PFE to the average of the S&P500 Index (24.32), we can say 1PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 8.44 |
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 87.04% of the companies listed 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 81.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 7.16 |
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 -2.35% in the coming years.
PEG (NY)5.99
PEG (5Y)7.55
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
5. Dividend
5.1 Amount
- 1PFE has a Yearly Dividend Yield of 6.64%, which is a nice return.
- 1PFE's Dividend Yield is rather good when compared to the industry average which is at 1.59. 1PFE pays more dividend than 98.15% of the companies in the same industry.
- 1PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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-1.16%
EPS Next 3Y-2.35%
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 1.34% 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%.