PFIZER INC (PFE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFE - US7170811035 - Common Stock
25.74 USD
+0.03 (+0.12%)
25.75 USD
+0.01 (+0.04%)
We assign a fundamental rating of 6 out of 10 to PFE. PFE was compared to 192 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are some minor concerns on its financial health. PFE has a bad growth rate and is valued cheaply. PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
In the past year PFE had a positive cash flow from operations.
PFE had positive earnings in each of the past 5 years.
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 85.94% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.59%, PFE belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
PFE has a better Return On Invested Capital (8.39%) than 86.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is in line with the industry average of 12.71%.
| 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
Looking at the Profit Margin, with a value of 15.65%, PFE belongs to the top of the industry, outperforming 88.54% of the companies in the same industry.
In the last couple of years the Profit Margin of PFE has declined.
PFE's Operating Margin of 29.12% is amongst the best of the industry. PFE outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of PFE has grown nicely.
The Gross Margin of PFE (74.95%) is better than 80.73% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PFE is creating some value.
PFE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFE has more shares outstanding
Compared to 1 year ago, PFE has an improved debt to assets ratio.
2.2 Solvency
PFE has an Altman-Z score of 2.22. This is not the best score and indicates that PFE is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.22, PFE is doing good in the industry, outperforming 61.46% of the companies in the same industry.
The Debt to FCF ratio of PFE is 5.95, which is a neutral value as it means it would take PFE, 5.95 years of fcf income to pay off all of its debts.
PFE has a Debt to FCF ratio of 5.95. This is amongst the best in the industry. PFE outperforms 80.73% 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.
PFE's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. PFE is outperformed by 67.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.99
WACC8.47%
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.
Looking at the Current ratio, with a value of 1.28, PFE is doing worse than 76.56% of the companies in the same industry.
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: 76.56% 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.
PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
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 -4.95% on average per year.
The Revenue is expected to decrease by -3.04% on average over the next years.
EPS Next Y-1.19%
EPS Next 2Y0.92%
EPS Next 3Y0.4%
EPS Next 5Y-4.95%
Revenue Next Year-0.29%
Revenue Next 2Y-0.48%
Revenue Next 3Y-1.11%
Revenue Next 5Y-3.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PFE is valuated reasonably with a Price/Earnings ratio of 8.04.
PFE's Price/Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 92.71% of the companies in the same industry.
PFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 8.13 indicates a reasonable valuation of PFE.
90.10% of the companies in the same industry are more expensive than PFE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (36.59), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaper than 92.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 86.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 7.18 |
4.3 Compensation for Growth
PFE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.57
EPS Next 2Y0.92%
EPS Next 3Y0.4%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.69%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 6.85. PFE pays more dividend than 98.44% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.30%.
PFE has paid a dividend for at least 10 years, which is 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%
25.74
+0.03 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change0.03%
Ins Owners0.02%
Ins Owner Change0%
Market Cap146.35B
Revenue(TTM)62.79B
Net Income(TTM)9.83B
Analysts71.33
Price Target29.44 (14.37%)
Short Float %2.23%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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)34.46%
Min EPS beat(2)32.91%
Max EPS beat(2)36.01%
EPS beat(4)4
Avg EPS beat(4)34.72%
Min EPS beat(4)32.52%
Max EPS beat(4)37.45%
EPS beat(8)8
Avg EPS beat(8)54.91%
EPS beat(12)12
Avg EPS beat(12)44.86%
EPS beat(16)16
Avg EPS beat(16)38.4%
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)-1.56%
PT rev (3m)-0.94%
EPS NQ rev (1m)-15.92%
EPS NQ rev (3m)-15.23%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-1.42%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.13 | ||
| P/S | 2.33 | ||
| P/FCF | 14.1 | ||
| P/OCF | 11.19 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.18 |
EPS(TTM)3.2
EY12.43%
EPS(NY)3.17
Fwd EY12.3%
FCF(TTM)1.82
FCFY7.09%
OCF(TTM)2.3
OCFY8.94%
SpS11.04
BVpS16.32
TBVpS-4.86
PEG (NY)N/A
PEG (5Y)7.57
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 | 2.22 |
F-Score6
WACC8.47%
ROIC/WACC0.99
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-4.95%
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-3.04%
EBIT growth 1Y-5.75%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year16.68%
EBIT Next 3Y5.82%
EBIT Next 5Y-0.15%
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 6 / 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 8 / 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 8.04 and the Price/Book (PB) ratio is 1.58.
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.