PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock
PFE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 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. 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.
PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PFE's Return On Assets of 1.94% is amongst the best of the industry. PFE outperforms 84.95% of its industry peers.
Looking at the Return On Equity, with a value of 4.61%, PFE belongs to the top of the industry, outperforming 86.02% of the companies in the same industry.
PFE has a better Return On Invested Capital (6.52%) than 84.41% of its industry peers.
PFE had an Average Return On Invested Capital over the past 3 years of 15.85%. This is significantly below the industry average of 43.99%.
The last Return On Invested Capital (6.52%) for PFE is well below the 3 year average (15.85%), which needs to be investigated, but indicates that PFE had better years and this may not be a problem.
| 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 86.02% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
PFE has a better Operating Margin (21.87%) than 87.10% of its industry peers.
In the last couple of years the Operating Margin of PFE has grown nicely.
Looking at the Gross Margin, with a value of 70.82%, PFE is in the better half of the industry, outperforming 76.34% of the companies in the same industry.
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 just above the Cost of Capital (WACC), so PFE is still creating some value.
PFE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PFE has less shares outstanding
PFE has a worse debt/assets ratio than last year.
2.2 Solvency
PFE has an Altman-Z score of 1.95. 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 1.95, PFE is in the better half of the industry, outperforming 67.74% 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.
PFE has a better Debt to FCF ratio (8.23) than 83.33% of its industry peers.
PFE has a Debt/Equity ratio of 0.69. This is a neutral value indicating PFE is somewhat dependend on debt financing.
PFE's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. PFE is outperformed by 68.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.63
WACC10.32%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PFE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, PFE is doing worse than 85.48% of the companies in the same industry.
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 Quick ratio of 0.73. This is amonst the worse of the industry: PFE underperforms 88.71% 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.
Measured over the past years, PFE shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.41% on average per year.
Looking at the last year, PFE shows a very negative growth in Revenue. The Revenue has decreased by -12.90% in the last year.
Measured over the past years, PFE shows a small growth in Revenue. The Revenue has been growing by 7.46% on average per year.
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
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
PFE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
EPS Next Y61.41%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
EPS Next 5Y9.51%
Revenue Next Year7.12%
Revenue Next 2Y3.64%
Revenue Next 3Y2.55%
Revenue Next 5Y0.54%
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 accelerating.
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
Based on the Price/Earnings ratio of 10.33, the valuation of PFE can be described as reasonable.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.12, the valuation of PFE can be described as reasonable.
Based on the Price/Forward Earnings ratio, PFE is valued cheaper than 89.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (24.11), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 86.56% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 86.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 9.58 |
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 18.74% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y26.37%
EPS Next 3Y18.74%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.49%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 4.09. PFE pays more dividend than 98.39% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.78%.
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)3.78%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
222.18% of the earnings are spent on dividend by PFE. This is not a sustainable payout ratio.
PFE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP222.18%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
PFIZER INC
NYSE:PFE (1/21/2025, 4:44:03 PM)
After market: 26.59 -0.05 (-0.19%)26.64
+0.34 (+1.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.53%
Inst Owner Change-0.22%
Ins Owners0.02%
Ins Owner Change-0.45%
Market Cap150.97B
Analysts72
Price Target32.22 (20.95%)
Short Float %1.34%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly Dividend1.64
Dividend Growth(5Y)3.78%
DP222.18%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.99%
Min EPS beat(2)30.28%
Max EPS beat(2)69.69%
EPS beat(4)4
Avg EPS beat(4)75.1%
Min EPS beat(4)30.28%
Max EPS beat(4)145.39%
EPS beat(8)8
Avg EPS beat(8)49.93%
EPS beat(12)12
Avg EPS beat(12)39.63%
EPS beat(16)15
Avg EPS beat(16)32%
Revenue beat(2)2
Avg Revenue beat(2)9.37%
Min Revenue beat(2)1.51%
Max Revenue beat(2)17.22%
Revenue beat(4)3
Avg Revenue beat(4)5.44%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)17.22%
Revenue beat(8)4
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)3.32%
Revenue beat(16)9
Avg Revenue beat(16)3.11%
PT rev (1m)-2.52%
PT rev (3m)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.43%
EPS NY rev (1m)0%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 9.12 | ||
| P/S | 2.51 | ||
| P/FCF | 18.35 | ||
| P/OCF | 13.41 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.58 |
EPS(TTM)2.58
EY9.68%
EPS(NY)2.92
Fwd EY10.97%
FCF(TTM)1.45
FCFY5.45%
OCF(TTM)1.99
OCFY7.46%
SpS10.61
BVpS16.28
TBVpS-6.4
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROCE | 7.46% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 27.19% | ||
| OM | 21.87% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% | ||
| FCFM | 13.68% |
ROA(3y)9.65%
ROA(5y)8.92%
ROE(3y)21.22%
ROE(5y)20.78%
ROIC(3y)15.85%
ROIC(5y)12.08%
ROICexc(3y)19.05%
ROICexc(5y)14.23%
ROICexgc(3y)65.81%
ROICexgc(5y)47.35%
ROCE(3y)17.69%
ROCE(5y)13.61%
ROICexcg growth 3Y6.45%
ROICexcg growth 5Y-2.08%
ROICexc growth 3Y-4.71%
ROICexc growth 5Y0%
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%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 44.05% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 4.54 | ||
| Cash Conversion | 56.21% | ||
| Profit Quality | 193.46% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.95 |
F-Score5
WACC10.32%
ROIC/WACC0.63
Cap/Depr(3y)59.41%
Cap/Depr(5y)55.97%
Cap/Sales(3y)4.41%
Cap/Sales(5y)5.25%
Profit Quality(3y)148.35%
Profit Quality(5y)126.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.1%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS Q2Q%723.53%
EPS Next Y61.41%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y7.46%
Sales Q2Q%33.78%
Revenue Next Year7.12%
Revenue Next 2Y3.64%
Revenue Next 3Y2.55%
Revenue Next 5Y0.54%
EBIT growth 1Y-34.77%
EBIT growth 3Y8.85%
EBIT growth 5Y9.07%
EBIT Next Year205.1%
EBIT Next 3Y46.45%
EBIT Next 5Y25.53%
FCF growth 1Y-64.8%
FCF growth 3Y-25.54%
FCF growth 5Y-18.86%
OCF growth 1Y-57.66%
OCF growth 3Y-15.47%
OCF growth 5Y-11.28%