PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
24.15 USD
+0.1 (+0.42%)
24.1992 USD
+0.05 (+0.2%)
We assign a fundamental rating of 6 out of 10 to PFE. PFE was compared to 196 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are some minor concerns on its financial health. PFE may be a bit undervalued, certainly considering the very reasonable score on growth Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
PFE had a positive operating cash flow in the past year.
PFE had positive earnings in each of the past 5 years.
PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.22%, PFE belongs to the top of the industry, outperforming 88.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.12%, PFE belongs to the top of the industry, outperforming 88.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.54%, PFE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFE is below the industry average of 15.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 12.12% | ||
| ROIC | 8.54% |
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 16.84%, PFE belongs to the top of the industry, outperforming 90.31% of the companies in the same industry.
In the last couple of years the Profit Margin of PFE has declined.
The Operating Margin of PFE (28.52%) is better than 93.37% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
PFE has a better Gross Margin (73.96%) than 81.12% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.52% | ||
| PM (TTM) | 16.84% | ||
| GM | 73.96% |
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.
PFE has more shares outstanding than it did 1 year ago.
PFE has more shares outstanding than it did 5 years ago.
PFE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE's Altman-Z score of 2.13 is fine compared to the rest of the industry. PFE outperforms 66.84% of its industry peers.
PFE has a debt to FCF ratio of 4.97. This is a neutral value as PFE would need 4.97 years to pay back of all of its debts.
PFE's Debt to FCF ratio of 4.97 is amongst the best of the industry. PFE outperforms 83.16% of its industry peers.
PFE has a Debt/Equity ratio of 0.65. This is a neutral value indicating PFE is somewhat dependend on debt financing.
The Debt to Equity ratio of PFE (0.65) is worse than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.92
WACC9.3%
2.3 Liquidity
PFE has a Current Ratio of 1.16. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
PFE's Current ratio of 1.16 is on the low side compared to the rest of the industry. PFE is outperformed by 77.55% of its industry peers.
A Quick Ratio of 0.85 indicates that PFE may have some problems paying its short term obligations.
PFE's Quick ratio of 0.85 is on the low side compared to the rest of the industry. PFE is outperformed by 79.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.11%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
The Revenue has grown by 13.54% in the past year. This is quite good.
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)151.11%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%30%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
3.2 Future
The Earnings Per Share is expected to decrease by -4.48% on average over the next years.
PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.85% yearly.
EPS Next Y0.26%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
EPS Next 5Y-4.48%
Revenue Next Year0.25%
Revenue Next 2Y-0.23%
Revenue Next 3Y-0.84%
Revenue Next 5Y-2.85%
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
With a Price/Earnings ratio of 7.12, 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 93.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PFE to the average of the S&P500 Index (27.41), we can say PFE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.63, the valuation of PFE can be described as very cheap.
91.84% of the companies in the same industry are more expensive than PFE, based on the Price/Forward Earnings ratio.
PFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
PFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PFE is cheaper than 93.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PFE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PFE may justify a higher PE ratio.
PEG (NY)27.38
PEG (5Y)6.71
EPS Next 2Y0.86%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.92%, PFE is a good candidate for dividend investing.
PFE's Dividend Yield is rather good when compared to the industry average which is at 5.04. PFE pays more dividend than 98.47% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 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
89.68% of the earnings are spent on dividend by PFE. 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.
DP89.68%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
24.15
+0.1 (+0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.51%
Inst Owner Change-0.94%
Ins Owners0.02%
Ins Owner Change0%
Market Cap137.31B
Analysts70.67
Price Target29.71 (23.02%)
Short Float %1.82%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend1.68
Dividend Growth(5Y)3.3%
DP89.68%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.18%
Min EPS beat(2)32.91%
Max EPS beat(2)37.45%
EPS beat(4)4
Avg EPS beat(4)43.14%
Min EPS beat(4)32.52%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)56.64%
EPS beat(12)12
Avg EPS beat(12)44.11%
EPS beat(16)16
Avg EPS beat(16)37.53%
Revenue beat(2)1
Avg Revenue beat(2)2.3%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)6.96%
Revenue beat(4)3
Avg Revenue beat(4)5.79%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)17.22%
Revenue beat(8)5
Avg Revenue beat(8)3.23%
Revenue beat(12)8
Avg Revenue beat(12)3.25%
Revenue beat(16)11
Avg Revenue beat(16)3.37%
PT rev (1m)1.28%
PT rev (3m)1.96%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-15.73%
EPS NY rev (1m)2.96%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.63 | ||
| P/S | 2.15 | ||
| P/FCF | 11.04 | ||
| P/OCF | 9.04 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.95 |
EPS(TTM)3.39
EY14.04%
EPS(NY)3.16
Fwd EY13.1%
FCF(TTM)2.19
FCFY9.06%
OCF(TTM)2.67
OCFY11.06%
SpS11.23
BVpS15.6
TBVpS-5.8
PEG (NY)27.38
PEG (5Y)6.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 12.12% | ||
| ROCE | 10.81% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 42.97% | ||
| OM | 28.52% | ||
| PM (TTM) | 16.84% | ||
| GM | 73.96% | ||
| FCFM | 19.48% |
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%
ROICexcg growth 3Y-10.89%
ROICexcg 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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 40.51% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 5.77 | ||
| Cash Conversion | 60.76% | ||
| Profit Quality | 115.66% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.13 |
F-Score7
WACC9.3%
ROIC/WACC0.92
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)151.11%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%30%
EPS Next Y0.26%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
EPS Next 5Y-4.48%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
Revenue Next Year0.25%
Revenue Next 2Y-0.23%
Revenue Next 3Y-0.84%
Revenue Next 5Y-2.85%
EBIT growth 1Y65.39%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year23.41%
EBIT Next 3Y6.93%
EBIT Next 5Y3.57%
FCF growth 1Y16.62%
FCF growth 3Y-30.95%
FCF growth 5Y-0.32%
OCF growth 1Y4.31%
OCF growth 3Y-26.87%
OCF growth 5Y0.25%