PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
BIT:1PM - Euronext Milan - US7181721090 - Common Stock - Currency: EUR
Overall 1PM gets a fundamental rating of 4 out of 10. We evaluated 1PM against 4 industry peers in the Tobacco industry. 1PM has only an average score on both its financial health and profitability. While showing a medium growth rate, 1PM is valued expensive at the moment.
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.
1PM had positive earnings in each of the past 5 years.
1PM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PM has a Return On Assets of 11.64%. This is comparable to the rest of the industry: 1PM outperforms 50.00% of its industry peers.
1PM's Return On Invested Capital of 25.67% is in line compared to the rest of the industry. 1PM outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1PM is above the industry average of 20.78%.
The 3 year average ROIC (25.07%) for 1PM is below the current ROIC(25.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROIC | 25.67% |
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
1PM has a Profit Margin (19.73%) which is in line with its industry peers.
1PM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 36.24%, 1PM is in line with its industry, outperforming 50.00% of the companies in the same industry.
1PM's Operating Margin has been stable in the last couple of years.
1PM has a Gross Margin of 65.68%. This is in the better half of the industry: 1PM outperforms 66.67% 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 | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% |
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.
1PM has about the same amout of shares outstanding than it did 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
1PM has an Altman-Z score of 4.01. This indicates that 1PM is financially healthy and has little risk of bankruptcy at the moment.
1PM has a better Altman-Z score (4.01) than 66.67% of its industry peers.
1PM has a debt to FCF ratio of 4.86. This is a neutral value as 1PM would need 4.86 years to pay back of all of its debts.
1PM has a worse Debt to FCF ratio (4.86) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.01 |
ROIC/WACC3.17
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.79 indicates that 1PM may have some problems paying its short term obligations.
1PM has a better Current ratio (0.79) than 83.33% of its industry peers.
A Quick Ratio of 0.43 indicates that 1PM may have some problems paying its short term obligations.
1PM has a better Quick ratio (0.43) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
1PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.95%, 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.
Looking at the last year, 1PM shows a small growth in Revenue. The Revenue has grown by 6.78% in the last year.
Measured over the past years, 1PM shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
EPS 1Y (TTM)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
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 10.38% yearly.
1PM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.64% yearly.
EPS Next Y17.51%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
EPS Next 5Y10.38%
Revenue Next Year9.4%
Revenue Next 2Y8.85%
Revenue Next 3Y7.97%
Revenue Next 5Y7.64%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1PM is valuated quite expensively with a Price/Earnings ratio of 25.43.
1PM's Price/Earnings ratio is rather expensive when compared to the industry. 1PM is more expensive than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, 1PM is valued at the same level.
1PM is valuated rather expensively with a Price/Forward Earnings ratio of 20.04.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PM indicates a rather expensive valuation: 1PM more expensive than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1PM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PM indicates a rather expensive valuation: 1PM more expensive than 83.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PM indicates a rather expensive valuation: 1PM more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.16 | ||
| EV/EBITDA | 19.44 |
4.3 Compensation for Growth
1PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1PM's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)5.38
EPS Next 2Y14.26%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, 1PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.82, 1PM is paying slightly less dividend.
1PM's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
109.27% of the earnings are spent on dividend by 1PM. This is not a sustainable payout ratio.
The dividend of 1PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP109.27%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
BIT:1PM (7/11/2025, 7:00:00 PM)
153.06
+2.86 (+1.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap238.24B
Analysts81.67
Price Target154.72 (1.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend4.71
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.08%
Min EPS beat(2)0.44%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.59%
Min EPS beat(4)-1.59%
Max EPS beat(4)1.78%
EPS beat(8)6
Avg EPS beat(8)0.36%
EPS beat(12)9
Avg EPS beat(12)2.9%
EPS beat(16)10
Avg EPS beat(16)2.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)1.23%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)12.06%
PT rev (3m)17.23%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)5.54%
EPS NY rev (1m)4.9%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)4.03%
Revenue NY rev (1m)2.68%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 20.04 | ||
| P/S | 6.95 | ||
| P/FCF | 26.16 | ||
| P/OCF | 22.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.44 |
EPS(TTM)6.02
EY3.93%
EPS(NY)7.64
Fwd EY4.99%
FCF(TTM)5.85
FCFY3.82%
OCF(TTM)6.67
OCFY4.36%
SpS22.03
BVpS-6.26
TBVpS-22.45
PEG (NY)1.45
PEG (5Y)5.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROCE | 37.61% | ||
| ROIC | 25.67% | ||
| ROICexc | 28.75% | ||
| ROICexgc | 121.16% | ||
| OM | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% | ||
| FCFM | 26.56% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
ROICexc(3y)27.51%
ROICexc(5y)37.8%
ROICexgc(3y)111.48%
ROICexgc(5y)109.03%
ROCE(3y)35.09%
ROCE(5y)42.41%
ROICexcg growth 3Y8.03%
ROICexcg growth 5Y11.03%
ROICexc growth 3Y-18.85%
ROICexc growth 5Y-9.39%
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%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 75.32% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 134.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.01 |
F-Score6
WACC8.1%
ROIC/WACC3.17
Cap/Depr(3y)88.63%
Cap/Depr(5y)80.44%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.09%
Profit Quality(3y)120.71%
Profit Quality(5y)120.05%
High Growth Momentum
Growth
EPS 1Y (TTM)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
EPS Next Y17.51%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
EPS Next 5Y10.38%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
Revenue Next Year9.4%
Revenue Next 2Y8.85%
Revenue Next 3Y7.97%
Revenue Next 5Y7.64%
EBIT growth 1Y1.8%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year19.22%
EBIT Next 3Y11.82%
EBIT Next 5Y10.29%
FCF growth 1Y34.09%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y33.17%
OCF growth 3Y0.69%
OCF growth 5Y3.9%