PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
24.43 USD
-0.42 (-1.69%)
24.44 USD
+0.01 (+0.04%)
We assign a fundamental rating of 5 out of 10 to PFE. PFE was compared to 192 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but there are some minor concerns on its financial health. PFE is valued quite cheap, but it does not seem to be growing. Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFE had positive earnings in the past year.
In the past year PFE had a positive cash flow from operations.
Each year in the past 5 years PFE has been profitable.
Each year in the past 5 years PFE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.71%, PFE belongs to the top of the industry, outperforming 88.02% of the companies in the same industry.
PFE has a Return On Equity of 10.59%. This is amongst the best in the industry. PFE outperforms 87.50% of its industry peers.
PFE's Return On Invested Capital of 8.39% is amongst the best of the industry. PFE outperforms 85.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is below the industry average of 15.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 10.59% | ||
| ROIC | 8.39% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.29%
ROIC(5y)11.14%
1.3 Margins
PFE's Profit Margin of 15.65% is amongst the best of the industry. PFE outperforms 89.58% of its industry peers.
In the last couple of years the Profit Margin of PFE has declined.
PFE has a Operating Margin of 29.12%. This is amongst the best in the industry. PFE outperforms 93.75% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
PFE's Gross Margin of 74.95% is amongst the best of the industry. PFE outperforms 82.29% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.12% | ||
| PM (TTM) | 15.65% | ||
| GM | 74.95% |
OM growth 3Y-8.1%
OM growth 5Y3.31%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.09%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
PFE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PFE has been increased compared to 1 year ago.
Compared to 5 years ago, PFE has more shares outstanding
PFE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PFE (2.18) is better than 65.10% of its industry peers.
PFE has a debt to FCF ratio of 5.95. This is a neutral value as PFE would need 5.95 years to pay back of all of its debts.
PFE's Debt to FCF ratio of 5.95 is amongst the best of the industry. PFE outperforms 81.25% of its industry peers.
PFE has a Debt/Equity ratio of 0.62. This is a neutral value indicating PFE is somewhat dependend on debt financing.
The Debt to Equity ratio of PFE (0.62) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.01
WACC8.32%
2.3 Liquidity
PFE has a Current Ratio of 1.28. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
PFE has a worse Current ratio (1.28) than 75.52% of its industry peers.
PFE has a Quick Ratio of 1.28. This is a bad value and indicates that PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.97, PFE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.03%, which is quite impressive.
PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
Looking at the last year, PFE shows a small growth in Revenue. The Revenue has grown by 3.90% in the last year.
Measured over the past years, PFE shows a quite strong growth in Revenue. The Revenue has been growing by 9.10% on average per year.
EPS 1Y (TTM)24.03%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%-17.92%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-5.92%
3.2 Future
Based on estimates for the next years, PFE will show a decrease in Earnings Per Share. The EPS will decrease by -4.68% on average per year.
PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.92% yearly.
EPS Next Y-1.19%
EPS Next 2Y0.92%
EPS Next 3Y0.4%
EPS Next 5Y-4.68%
Revenue Next Year-0.29%
Revenue Next 2Y-0.48%
Revenue Next 3Y-1.11%
Revenue Next 5Y-2.92%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.63, the valuation of PFE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 93.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PFE to the average of the S&P500 Index (25.83), we can say PFE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.71, the valuation of PFE can be described as very cheap.
PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 90.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. PFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 93.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.39 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
PFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.19
EPS Next 2Y0.92%
EPS Next 3Y0.4%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.92%, which is a nice return.
Compared to an average industry Dividend Yield of 6.99, PFE pays a better dividend. On top of this PFE pays more dividend than 98.44% of the companies listed in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.30%.
PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
PFE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.3%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
PFE pays out 98.76% of its income as dividend. This is not a sustainable payout ratio.
PFE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP98.76%
EPS Next 2Y0.92%
EPS Next 3Y0.4%
24.43
-0.42 (-1.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change-0.69%
Ins Owners0.02%
Ins Owner Change0%
Market Cap138.90B
Revenue(TTM)62.79B
Net Income(TTM)9.83B
Analysts71.33
Price Target29.6 (21.16%)
Short Float %2.06%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend1.68
Dividend Growth(5Y)3.3%
DP98.76%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.89%
Min EPS beat(2)32.91%
Max EPS beat(2)36.88%
EPS beat(4)4
Avg EPS beat(4)34.94%
Min EPS beat(4)32.52%
Max EPS beat(4)37.45%
EPS beat(8)8
Avg EPS beat(8)55.02%
EPS beat(12)12
Avg EPS beat(12)44.93%
EPS beat(16)16
Avg EPS beat(16)38.46%
Revenue beat(2)1
Avg Revenue beat(2)3.22%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)6.96%
Revenue beat(4)2
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)6.96%
Revenue beat(8)5
Avg Revenue beat(8)3.39%
Revenue beat(12)7
Avg Revenue beat(12)2.66%
Revenue beat(16)10
Avg Revenue beat(16)3.04%
PT rev (1m)-1.01%
PT rev (3m)0.91%
EPS NQ rev (1m)-9.36%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 7.71 | ||
| P/S | 2.21 | ||
| P/FCF | 13.39 | ||
| P/OCF | 10.62 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.88 |
EPS(TTM)3.2
EY13.1%
EPS(NY)3.17
Fwd EY12.96%
FCF(TTM)1.82
FCFY7.47%
OCF(TTM)2.3
OCFY9.41%
SpS11.04
BVpS16.32
TBVpS-4.86
PEG (NY)N/A
PEG (5Y)7.19
Graham Number34.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 10.59% | ||
| ROCE | 10.62% | ||
| ROIC | 8.39% | ||
| ROICexc | 9.19% | ||
| ROICexgc | 39.27% | ||
| OM | 29.12% | ||
| PM (TTM) | 15.65% | ||
| GM | 74.95% | ||
| FCFM | 16.53% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.29%
ROIC(5y)11.14%
ROICexc(3y)12.95%
ROICexc(5y)13.16%
ROICexgc(3y)51.69%
ROICexgc(5y)47.96%
ROCE(3y)14.48%
ROCE(5y)14.24%
ROICexgc growth 3Y-10.89%
ROICexgc growth 5Y27.11%
ROICexc growth 3Y-24.53%
ROICexc growth 5Y9.97%
OM growth 3Y-8.1%
OM growth 5Y3.31%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.09%
GM growth 5Y-1.57%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 40.34% | ||
| Cap/Sales | 4.3% | ||
| Interest Coverage | 5.8 | ||
| Cash Conversion | 52.35% | ||
| Profit Quality | 105.58% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.18 |
F-Score6
WACC8.32%
ROIC/WACC1.01
Cap/Depr(3y)55.83%
Cap/Depr(5y)55.63%
Cap/Sales(3y)4.78%
Cap/Sales(5y)4.87%
Profit Quality(3y)143.88%
Profit Quality(5y)138.86%
High Growth Momentum
Growth
EPS 1Y (TTM)24.03%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%-17.92%
EPS Next Y-1.19%
EPS Next 2Y0.92%
EPS Next 3Y0.4%
EPS Next 5Y-4.68%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-5.92%
Revenue Next Year-0.29%
Revenue Next 2Y-0.48%
Revenue Next 3Y-1.11%
Revenue Next 5Y-2.92%
EBIT growth 1Y-5.75%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year16.68%
EBIT Next 3Y5.82%
EBIT Next 5Y0.93%
FCF growth 1Y26.86%
FCF growth 3Y-30.95%
FCF growth 5Y-0.32%
OCF growth 1Y8.59%
OCF growth 3Y-26.87%
OCF growth 5Y0.25%
PFIZER INC / PFE FAQ
What is the ChartMill fundamental rating of PFIZER INC (PFE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PFE.
What is the valuation status for PFE stock?
ChartMill assigns a valuation rating of 8 / 10 to PFIZER INC (PFE). This can be considered as Undervalued.
How profitable is PFIZER INC (PFE) stock?
PFIZER INC (PFE) has a profitability rating of 7 / 10.
What is the valuation of PFIZER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PFIZER INC (PFE) is 7.63 and the Price/Book (PB) ratio is 1.5.
What is the expected EPS growth for PFIZER INC (PFE) stock?
The Earnings per Share (EPS) of PFIZER INC (PFE) is expected to decline by -1.19% in the next year.