PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
25.06 USD
-0.73 (-2.83%)
25.1004 USD
+0.04 (+0.16%)
Taking everything into account, PFE scores 5 out of 10 in our fundamental rating. PFE was compared to 192 industry peers in the Pharmaceuticals industry. While PFE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PFE is cheap, but on the other hand it scores bad on growth. 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.
PFE had positive earnings in each of the past 5 years.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
PFE's Return On Assets of 4.71% is amongst the best of the industry. PFE outperforms 86.91% of its industry peers.
Looking at the Return On Equity, with a value of 10.59%, PFE belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
PFE has a Return On Invested Capital of 8.39%. This is amongst the best in the industry. PFE outperforms 86.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is below the industry average of 15.35%.
| 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 87.96% 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 93.72% of its industry peers.
In the last couple of years the Operating Margin of PFE has grown nicely.
PFE has a better Gross Margin (74.95%) than 81.68% of its industry peers.
In the last couple of years the Gross Margin of PFE has declined.
| 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
Compared to 1 year ago, PFE has an improved debt to assets ratio.
2.2 Solvency
PFE has an Altman-Z score of 2.20. 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.
Looking at the Altman-Z score, with a value of 2.20, PFE is in the better half of the industry, outperforming 65.97% 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 81.15% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that PFE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, PFE is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.2 |
ROIC/WACC1
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PFE should not have too much problems paying its short term obligations.
PFE's Current ratio of 1.28 is on the low side compared to the rest of the industry. PFE is outperformed by 75.92% 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: 74.87% 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.
Measured over the past 5 years, PFE shows a small growth in Earnings Per Share. The EPS has been growing by 1.06% on average per year.
PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
PFE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.10% yearly.
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.
Based on estimates for the next years, PFE will show a decrease in Revenue. The Revenue will decrease by -2.92% on average per year.
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
With a Price/Earnings ratio of 7.83, the valuation of PFE can be described as very cheap.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 92.15% of the companies are valued more expensively.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.91, the valuation of PFE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 90.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. PFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 91.62% of the companies are valued more expensively.
87.96% of the companies in the same industry are more expensive than PFE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 7.03 |
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)7.37
EPS Next 2Y0.92%
EPS Next 3Y0.4%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.67%, which is a nice return.
Compared to an average industry Dividend Yield of 7.07, PFE pays a better dividend. On top of this PFE pays more dividend than 98.43% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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%
25.06
-0.73 (-2.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change-0.78%
Ins Owners0.02%
Ins Owner Change0%
Market Cap142.48B
Revenue(TTM)62.79B
Net Income(TTM)9.83B
Analysts71.33
Price Target29.6 (18.12%)
Short Float %2.06%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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)-10.63%
EPS NQ rev (3m)-8.72%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.91 | ||
| P/S | 2.27 | ||
| P/FCF | 13.73 | ||
| P/OCF | 10.9 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)3.2
EY12.77%
EPS(NY)3.17
Fwd EY12.64%
FCF(TTM)1.82
FCFY7.28%
OCF(TTM)2.3
OCFY9.18%
SpS11.04
BVpS16.32
TBVpS-4.86
PEG (NY)N/A
PEG (5Y)7.37
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 | 2.2 |
F-Score6
WACC8.43%
ROIC/WACC1
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 7.83 and the Price/Book (PB) ratio is 1.54.
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.