PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
BIT:1PM - Euronext Milan - US7181721090 - Common Stock - Currency: EUR
1PM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 6 industry peers in the Tobacco industry. Both the profitability and the financial health of 1PM get a neutral evaluation. Nothing too spectacular is happening here. 1PM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1PM had positive earnings in the past year.
In the past year 1PM had a positive cash flow from operations.
In the past 5 years 1PM has always been profitable.
In the past 5 years 1PM always reported a positive cash flow from operatings.
1.2 Ratios
1PM has a Return On Assets of 11.38%. This is in the better half of the industry: 1PM outperforms 66.67% of its industry peers.
The Return On Invested Capital of 1PM (26.67%) is better than 66.67% of its industry peers.
1PM had an Average Return On Invested Capital over the past 3 years of 25.07%. This is in line with the industry average of 23.89%.
The 3 year average ROIC (25.07%) for 1PM is below the current ROIC(26.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | N/A | ||
| ROIC | 26.67% |
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 better Profit Margin (18.57%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of 1PM has declined.
1PM has a better Operating Margin (35.93%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1PM has remained more or less at the same level.
The Gross Margin of 1PM (64.81%) is better than 83.33% of its industry peers.
1PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.93% | ||
| PM (TTM) | 18.57% | ||
| GM | 64.81% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1PM is creating value.
1PM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1PM has about the same amount of shares outstanding.
Compared to 1 year ago, 1PM has a worse debt to assets ratio.
2.2 Solvency
1PM has an Altman-Z score of 3.89. This indicates that 1PM is financially healthy and has little risk of bankruptcy at the moment.
1PM's Altman-Z score of 3.89 is in line compared to the rest of the industry. 1PM outperforms 50.00% of its industry peers.
The Debt to FCF ratio of 1PM is 4.24, which is a neutral value as it means it would take 1PM, 4.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1PM (4.24) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 3.89 |
ROIC/WACC3.36
WACC7.94%
2.3 Liquidity
1PM has a Current Ratio of 0.88. This is a bad value and indicates that 1PM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, 1PM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that 1PM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, 1PM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.99% over the past year.
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 7.44% in the past 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)8.99%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%13.97%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.28%
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 11.09% yearly.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y12.23%
EPS Next 2Y11.27%
EPS Next 3Y10.81%
EPS Next 5Y11.09%
Revenue Next Year6.03%
Revenue Next 2Y7%
Revenue Next 3Y6.9%
Revenue Next 5Y7%
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
The Price/Earnings ratio is 22.78, which indicates a rather expensive current valuation of 1PM.
1PM's Price/Earnings ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1PM to the average of the S&P500 Index (29.35), we can say 1PM is valued slightly cheaper.
The Price/Forward Earnings ratio is 20.30, which indicates a rather expensive current valuation of 1PM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PM indicates a slightly more expensive valuation: 1PM is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1PM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 20.3 |
4.2 Price Multiples
1PM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PM indicates a slightly more expensive valuation: 1PM is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.54 | ||
| EV/EBITDA | 17.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PM does not grow enough to justify the current Price/Earnings ratio.
1PM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)4.82
EPS Next 2Y11.27%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
1PM has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.83, 1PM's dividend is way lower than its industry peers. On top of this 83.33% of the companies listed in the same industry pay a better dividend than 1PM!
1PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
116.53% 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.
DP116.53%
EPS Next 2Y11.27%
EPS Next 3Y10.81%
BIT:1PM (3/5/2025, 7:00:00 PM)
142.6
+22.18 (+18.42%)
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 Cap221.72B
Analysts81.74
Price Target131.99 (-7.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP116.53%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.11%
Min EPS beat(2)0.44%
Max EPS beat(2)1.78%
EPS beat(4)3
Avg EPS beat(4)0.95%
Min EPS beat(4)-1.59%
Max EPS beat(4)3.16%
EPS beat(8)5
Avg EPS beat(8)0.1%
EPS beat(12)9
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)2.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)-0.13%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)0.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)7
Avg Revenue beat(12)1.42%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)-1.91%
PT rev (3m)8.2%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 20.3 | ||
| P/S | 6.13 | ||
| P/FCF | 21.54 | ||
| P/OCF | 18.99 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.46 |
EPS(TTM)6.26
EY4.39%
EPS(NY)7.02
Fwd EY4.93%
FCF(TTM)6.62
FCFY4.64%
OCF(TTM)7.51
OCFY5.27%
SpS23.28
BVpS-7.22
TBVpS-24.38
PEG (NY)1.86
PEG (5Y)4.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | N/A | ||
| ROCE | 35.01% | ||
| ROIC | 26.67% | ||
| ROICexc | 29.9% | ||
| ROICexgc | 151.58% | ||
| OM | 35.93% | ||
| PM (TTM) | 18.57% | ||
| GM | 64.81% | ||
| FCFM | 28.44% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.24 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 80.81% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 8.73 | ||
| Cash Conversion | 79.35% | ||
| Profit Quality | 153.16% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 3.89 |
F-Score6
WACC7.94%
ROIC/WACC3.36
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)8.99%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%13.97%
EPS Next Y12.23%
EPS Next 2Y11.27%
EPS Next 3Y10.81%
EPS Next 5Y11.09%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.28%
Revenue Next Year6.03%
Revenue Next 2Y7%
Revenue Next 3Y6.9%
Revenue Next 5Y7%
EBIT growth 1Y1.83%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year16.95%
EBIT Next 3Y10.4%
EBIT Next 5Y9.23%
FCF growth 1Y36.66%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y32.74%
OCF growth 3Y0.69%
OCF growth 5Y3.9%