PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
Europe - BIT:1PM - US7181721090 - Common Stock
133.42 EUR
-6.96 (-4.96%)
1PM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 4 industry peers in the Tobacco industry. There are concerns on the financial health of 1PM while its profitability can be described as average. 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.
1PM had a positive operating cash flow in the past year.
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
The Return On Assets of 1PM (11.98%) is better than 80.00% of its industry peers.
With a decent Return On Invested Capital value of 26.29%, 1PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1PM is above the industry average of 21.21%.
The 3 year average ROIC (25.07%) for 1PM is below the current ROIC(26.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROIC | 26.29% |
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's Profit Margin of 21.01% is fine compared to the rest of the industry. 1PM outperforms 80.00% of its industry peers.
1PM's Profit Margin has declined in the last couple of years.
1PM has a Operating Margin of 37.78%. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of 1PM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 66.45%, 1PM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% |
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
1PM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1PM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PM remains at a similar level compared to 5 years ago.
The debt/assets ratio for 1PM is higher compared to a year ago.
2.2 Solvency
1PM has a debt to FCF ratio of 5.72. This is a neutral value as 1PM would need 5.72 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.72, 1PM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC3
WACC8.77%
2.3 Liquidity
1PM has a Current Ratio of 0.83. This is a bad value and indicates that 1PM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1PM (0.83) is better than 80.00% of its industry peers.
1PM has a Quick Ratio of 0.83. 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 Quick ratio of 0.83. This is amongst the best in the industry. 1PM outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.36% over the past year.
Measured over the past 5 years, 1PM shows a small growth in Earnings Per Share. The EPS has been growing by 4.72% on average per year.
The Revenue has been growing slightly by 7.16% 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)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
3.2 Future
Based on estimates for the next years, 1PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.93% on average per year.
The Revenue is expected to grow by 8.73% on average over the next years. This is quite good.
EPS Next Y18.45%
EPS Next 2Y14.76%
EPS Next 3Y13.03%
EPS Next 5Y11.93%
Revenue Next Year8.94%
Revenue Next 2Y8.66%
Revenue Next 3Y8.03%
Revenue Next 5Y8.73%
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 rather expensively with a Price/Earnings ratio of 22.09.
60.00% 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 27.67. 1PM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of 1PM.
1PM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1PM to the average of the S&P500 Index (23.33), we can say 1PM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
1PM's Enterprise Value to EBITDA ratio is in line with the industry average.
60.00% of the companies in the same industry are cheaper than 1PM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.99 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
1PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1PM may justify a higher PE ratio.
A more expensive valuation may be justified as 1PM's earnings are expected to grow with 13.03% in the coming years.
PEG (NY)1.2
PEG (5Y)4.68
EPS Next 2Y14.76%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, 1PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.74, 1PM is paying slightly less dividend.
1PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
101.82% of the earnings are spent on dividend by 1PM. This is not a sustainable payout ratio.
1PM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.82%
EPS Next 2Y14.76%
EPS Next 3Y13.03%
BIT:1PM (10/22/2025, 7:00:00 PM)
133.42
-6.96 (-4.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap207.68B
Revenue(TTM)39.06B
Net Income(TTM)8.21B
Analysts81.54
Price Target161.17 (20.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend4.52
Dividend Growth(5Y)2.76%
DP101.82%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.19%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-0.19%
Max EPS beat(4)1.78%
EPS beat(8)5
Avg EPS beat(8)-0.35%
EPS beat(12)8
Avg EPS beat(12)1.72%
EPS beat(16)10
Avg EPS beat(16)2.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)-0.49%
PT rev (3m)4.17%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.07 | ||
| P/S | 6.21 | ||
| P/FCF | 26.99 | ||
| P/OCF | 23.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.75 |
EPS(TTM)6.04
EY4.53%
EPS(NY)7.38
Fwd EY5.53%
FCF(TTM)4.94
FCFY3.71%
OCF(TTM)5.72
OCFY4.29%
SpS21.48
BVpS-6.58
TBVpS-22.31
PEG (NY)1.2
PEG (5Y)4.68
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 26.29% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 111.1% | ||
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% | ||
| FCFM | 23.01% |
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%
ROICexgc growth 3Y8.03%
ROICexgc 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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.31% | ||
| Profit Quality | 109.54% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score6
WACC8.77%
ROIC/WACC3
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)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
EPS Next Y18.45%
EPS Next 2Y14.76%
EPS Next 3Y13.03%
EPS Next 5Y11.93%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
Revenue Next Year8.94%
Revenue Next 2Y8.66%
Revenue Next 3Y8.03%
Revenue Next 5Y8.73%
EBIT growth 1Y8.02%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year23.23%
EBIT Next 3Y13.83%
EBIT Next 5Y11.91%
FCF growth 1Y21.31%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y20.33%
OCF growth 3Y0.69%
OCF growth 5Y3.9%