PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PM - US7181721090 - Common Stock
148.14 EUR
+10.56 (+7.68%)
Overall 1PM gets a fundamental rating of 4 out of 10. We evaluated 1PM against 5 industry peers in the Tobacco industry. While 1PM is still in line with the averages on profitability rating, there are concerns on its financial health. 1PM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1PM was profitable.
- In the past year 1PM had a positive cash flow from operations.
- Each year in the past 5 years 1PM has been profitable.
- In the past 5 years 1PM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.83%, 1PM is in line with its industry, outperforming 60.00% of the companies in the same industry.
- The Return On Invested Capital of 1PM (28.03%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1PM is above the industry average of 22.36%.
- The last Return On Invested Capital (28.03%) for 1PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | N/A | ||
| ROIC | 28.03% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
1.3 Margins
- The Profit Margin of 1PM (21.51%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1PM has declined.
- 1PM has a Operating Margin of 38.71%. This is comparable to the rest of the industry: 1PM outperforms 60.00% of its industry peers.
- In the last couple of years the Operating Margin of 1PM has remained more or less at the same level.
- 1PM has a Gross Margin of 66.93%. This is comparable to the rest of the industry: 1PM outperforms 60.00% of its industry peers.
- In the last couple of years the Gross Margin of 1PM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.71% | ||
| PM (TTM) | 21.51% | ||
| GM | 66.93% |
OM growth 3Y-4.61%
OM growth 5Y-0.93%
PM growth 3Y-13.73%
PM growth 5Y-5.04%
GM growth 3Y-1.62%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PM is creating value.
- The number of shares outstanding for 1PM remains at a similar level compared to 1 year ago.
- 1PM has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1PM is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of 1PM is 4.95, which is a neutral value as it means it would take 1PM, 4.95 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.95, 1PM is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.26
WACC8.61%
2.3 Liquidity
- 1PM has a Current Ratio of 0.85. This is a bad value and indicates that 1PM is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1PM has a Current ratio of 0.85. This is comparable to the rest of the industry: 1PM outperforms 60.00% of its industry peers.
- A Quick Ratio of 0.85 indicates that 1PM may have some problems paying its short term obligations.
- 1PM has a Quick ratio of 0.85. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- 1PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.19%, which is quite good.
- 1PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.72% yearly.
- The Revenue has been growing slightly by 7.45% in the past year.
- The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)16.19%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%17.28%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
3.2 Future
- 1PM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.60% yearly.
- The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
Revenue Next 5Y7.66%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1PM is valuated rather expensively with a Price/Earnings ratio of 23.93.
- 80.00% of the companies in the same industry are cheaper than 1PM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. 1PM is around the same levels.
- With a Price/Forward Earnings ratio of 20.56, 1PM is valued on the expensive side.
- 1PM's Price/Forward Earnings ratio is rather expensive when compared to the industry. 1PM is more expensive than 80.00% of the companies in the same industry.
- 1PM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1PM is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- 1PM's Price/Free Cash Flow ratio is rather expensive when compared to the industry. 1PM is more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.17 | ||
| EV/EBITDA | 18.31 |
4.3 Compensation for Growth
- 1PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as 1PM's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)1.3
PEG (5Y)5.07
EPS Next 2Y14.56%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.70%, 1PM has a reasonable but not impressive dividend return.
- 1PM's Dividend Yield is slightly below the industry average, which is at 5.00.
- Compared to an average S&P500 Dividend Yield of 1.82, 1PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
- The dividend of 1PM has a limited annual growth rate of 2.76%.
Dividend Growth(5Y)2.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1PM pays out 98.07% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.07%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
PHILIP MORRIS INTERNATIONAL / 1PM.MI FAQ
Can you provide the ChartMill fundamental rating for PHILIP MORRIS INTERNATIONAL?
ChartMill assigns a fundamental rating of 4 / 10 to 1PM.MI.
What is the valuation status for 1PM stock?
ChartMill assigns a valuation rating of 2 / 10 to PHILIP MORRIS INTERNATIONAL (1PM.MI). This can be considered as Overvalued.
What is the profitability of 1PM stock?
PHILIP MORRIS INTERNATIONAL (1PM.MI) has a profitability rating of 5 / 10.
What is the valuation of PHILIP MORRIS INTERNATIONAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PHILIP MORRIS INTERNATIONAL (1PM.MI) is 23.93 and the Price/Book (PB) ratio is -25.2.
Can you provide the dividend sustainability for 1PM stock?
The dividend rating of PHILIP MORRIS INTERNATIONAL (1PM.MI) is 4 / 10 and the dividend payout ratio is 98.07%.