PHILIP MORRIS INTERNATIONAL (4I1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4I1 - US7181721090 - Common Stock
150.34 EUR
+2.8 (+1.9%)
Taking everything into account, 4I1 scores 4 out of 10 in our fundamental rating. 4I1 was compared to 5 industry peers in the Tobacco industry. There are concerns on the financial health of 4I1 while its profitability can be described as average. 4I1 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 4I1 had positive earnings in the past year.
- In the past year 4I1 had a positive cash flow from operations.
- In the past 5 years 4I1 has always been profitable.
- 4I1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 4I1 has a Return On Assets (12.83%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 28.03%, 4I1 perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 4I1 is above the industry average of 22.36%.
- The last Return On Invested Capital (28.03%) for 4I1 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 4I1 (21.51%) is comparable to the rest of the industry.
- 4I1's Profit Margin has declined in the last couple of years.
- 4I1's Operating Margin of 38.71% is in line compared to the rest of the industry. 4I1 outperforms 60.00% of its industry peers.
- 4I1's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 66.93%, 4I1 is in line with its industry, outperforming 60.00% of the companies in the same industry.
- 4I1's Gross Margin has been stable in the last couple of years.
| 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 4I1 is creating value.
- Compared to 1 year ago, 4I1 has about the same amount of shares outstanding.
- Compared to 5 years ago, 4I1 has about the same amount of shares outstanding.
- 4I1 has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of 4I1 is 4.95, which is a neutral value as it means it would take 4I1, 4.95 years of fcf income to pay off all of its debts.
- 4I1 has a Debt to FCF ratio of 4.95. This is amonst the worse of the industry: 4I1 underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.24
WACC8.65%
2.3 Liquidity
- 4I1 has a Current Ratio of 0.85. This is a bad value and indicates that 4I1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- 4I1 has a Current ratio (0.85) which is comparable to the rest of the industry.
- 4I1 has a Quick Ratio of 0.85. This is a bad value and indicates that 4I1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- 4I1 has a Quick ratio of 0.85. This is in the better half of the industry: 4I1 outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.19% over the past year.
- The Earnings Per Share has been growing slightly by 4.72% on average over the past years.
- 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
- 4I1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.60% yearly.
- Based on estimates for the next years, 4I1 will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y18.36%
EPS Next 2Y14.53%
EPS Next 3Y12.71%
EPS Next 5Y11.6%
Revenue Next Year8.28%
Revenue Next 2Y7.95%
Revenue Next 3Y7.5%
Revenue Next 5Y7.66%
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.
- 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
- A Price/Earnings ratio of 24.37 indicates a rather expensive valuation of 4I1.
- Based on the Price/Earnings ratio, 4I1 is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
- 4I1's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 20.95, which indicates a rather expensive current valuation of 4I1.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 4I1 indicates a rather expensive valuation: 4I1 more expensive than 80.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, 4I1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4I1 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- 4I1's Price/Free Cash Flow ratio is rather expensive when compared to the industry. 4I1 is more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.68 | ||
| EV/EBITDA | 18.61 |
4.3 Compensation for Growth
- The 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 4I1's earnings are expected to grow with 12.71% in the coming years.
PEG (NY)1.33
PEG (5Y)5.16
EPS Next 2Y14.53%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.46%, 4I1 has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.00, 4I1's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than 4I1!
- 4I1's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
- The dividend of 4I1 has a limited annual growth rate of 2.76%.
Dividend Growth(5Y)2.76%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 4I1 pays out 98.07% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 4I1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.07%
EPS Next 2Y14.53%
EPS Next 3Y12.71%
PHILIP MORRIS INTERNATIONAL / 4I1.DE FAQ
What is the ChartMill fundamental rating of PHILIP MORRIS INTERNATIONAL (4I1.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 4I1.DE.
What is the valuation status of PHILIP MORRIS INTERNATIONAL (4I1.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to PHILIP MORRIS INTERNATIONAL (4I1.DE). This can be considered as Overvalued.
What is the profitability of 4I1 stock?
PHILIP MORRIS INTERNATIONAL (4I1.DE) has a profitability rating of 5 / 10.
What are the PE and PB ratios of PHILIP MORRIS INTERNATIONAL (4I1.DE) stock?
The Price/Earnings (PE) ratio for PHILIP MORRIS INTERNATIONAL (4I1.DE) is 24.37 and the Price/Book (PB) ratio is -25.68.
How sustainable is the dividend of PHILIP MORRIS INTERNATIONAL (4I1.DE) stock?
The dividend rating of PHILIP MORRIS INTERNATIONAL (4I1.DE) is 4 / 10 and the dividend payout ratio is 98.07%.