PFIZER INC (PFE)
US7170811035 - Common Stock
Taking everything into account, PFE scores 6 out of 10 in our fundamental rating. PFE was compared to 194 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but there are some minor concerns on its financial health. PFE is cheap, but on the other hand it scores bad on growth. 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.
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
PFE has a Return On Assets of 1.94%. This is amongst the best in the industry. PFE outperforms 85.42% of its industry peers.
With an excellent Return On Equity value of 4.61%, PFE belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.52%, PFE belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFE is significantly below the industry average of 42.22%.
The 3 year average ROIC (15.85%) for PFE is well above the current ROIC(6.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROIC | 6.52% |
ROA(3y)9.65%
ROA(5y)8.92%
ROE(3y)21.22%
ROE(5y)20.78%
ROIC(3y)15.85%
ROIC(5y)12.08%
1.3 Margins
Looking at the Profit Margin, with a value of 7.07%, PFE belongs to the top of the industry, outperforming 86.46% 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 21.87% is amongst the best of the industry. PFE outperforms 87.50% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
PFE has a better Gross Margin (70.82%) than 77.08% of its industry peers.
In the last couple of years the Gross Margin of PFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.87% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% |
OM growth 3Y-2.8%
OM growth 5Y1.5%
PM growth 3Y-45.18%
PM growth 5Y-33.24%
GM growth 3Y-4.47%
GM growth 5Y-2.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PFE is creating value.
The number of shares outstanding for PFE has been increased compared to 1 year ago.
Compared to 5 years ago, PFE has less shares outstanding
The debt/assets ratio for PFE is higher compared to a year ago.
2.2 Solvency
PFE has an Altman-Z score of 1.91. 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 1.91, PFE is doing good in the industry, outperforming 67.71% of the companies in the same industry.
PFE has a debt to FCF ratio of 8.23. This is a slightly negative value and a sign of low solvency as PFE would need 8.23 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.23, PFE belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that PFE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, PFE is doing worse than 68.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.77
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PFE should not have too much problems paying its short term obligations.
PFE has a worse Current ratio (1.00) than 84.90% of its industry peers.
PFE has a Quick Ratio of 1.00. This is a bad value and indicates that PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
PFE has a worse Quick ratio (0.73) than 86.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for PFE have decreased strongly by -10.10% in the last year.
PFE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.41% yearly.
Looking at the last year, PFE shows a very negative growth in Revenue. The Revenue has decreased by -12.90% in the last year.
The Revenue has been growing slightly by 7.46% on average over the past years.
EPS 1Y (TTM)-10.1%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS Q2Q%723.53%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y7.46%
Sales Q2Q%33.78%
3.2 Future
PFE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
The Revenue is expected to grow by 1.19% on average over the next years.
EPS Next Y61.63%
EPS Next 2Y27.25%
EPS Next 3Y19.4%
EPS Next 5Y9.48%
Revenue Next Year7.23%
Revenue Next 2Y3.74%
Revenue Next 3Y2.78%
Revenue Next 5Y1.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 9.67, which indicates a very decent valuation of PFE.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.65. PFE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.42 indicates a reasonable valuation of PFE.
90.63% of the companies in the same industry are more expensive than PFE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
PFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PFE is cheaper than 86.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.18 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PFE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PFE's earnings are expected to grow with 19.40% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y27.25%
EPS Next 3Y19.4%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.46%, which is a nice return.
Compared to an average industry Dividend Yield of 4.28, PFE pays a better dividend. On top of this PFE pays more dividend than 97.92% 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.78%.
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)3.78%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
PFE pays out 222.18% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PFE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP222.18%
EPS Next 2Y27.25%
EPS Next 3Y19.4%
PFIZER INC
NYSE:PFE (11/20/2024, 8:04:00 PM)
Premarket: 24.82 -0.12 (-0.48%)24.94
-0.16 (-0.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap141.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.87% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.1%
EPS 3Y-12.38%
EPS 5Y
EPS Q2Q%
EPS Next Y61.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y