PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock - Currency: USD
Taking everything into account, PFE scores 5 out of 10 in our fundamental rating. PFE was compared to 197 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, 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
PFE had positive earnings in the past year.
In the past year PFE had a positive cash flow from operations.
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
The Return On Assets of PFE (3.76%) is better than 87.31% of its industry peers.
With an excellent Return On Equity value of 9.11%, PFE belongs to the best of the industry, outperforming 88.32% of the companies in the same industry.
The Return On Invested Capital of PFE (7.42%) is better than 85.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is significantly below the industry average of 40.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 9.11% | ||
| ROIC | 7.42% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.11%
ROIC(5y)11.03%
1.3 Margins
Looking at the Profit Margin, with a value of 12.62%, PFE belongs to the top of the industry, outperforming 88.32% of the companies in the same industry.
In the last couple of years the Profit Margin of PFE has declined.
With an excellent Operating Margin value of 25.61%, PFE belongs to the best of the industry, outperforming 91.37% of the companies in the same industry.
In the last couple of years the Operating Margin of PFE has grown nicely.
PFE has a Gross Margin of 74.19%. This is in the better half of the industry: PFE outperforms 79.70% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 12.62% | ||
| GM | 74.19% |
OM growth 3Y-9.04%
OM growth 5Y2.68%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.02%
GM growth 5Y-1.61%
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.
Compared to 1 year ago, PFE has more shares outstanding
PFE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PFE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.96, PFE is doing good in the industry, outperforming 70.05% of the companies in the same industry.
PFE has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as PFE would need 6.54 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.54, PFE belongs to the best of the industry, outperforming 82.23% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that PFE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, PFE is not doing good in the industry: 67.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.82
WACC9.08%
2.3 Liquidity
PFE has a Current Ratio of 1.17. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
PFE has a Current ratio of 1.17. This is in the lower half of the industry: PFE underperforms 79.70% of its industry peers.
A Quick Ratio of 0.92 indicates that PFE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, PFE is doing worse than 78.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 69.95% over the past year.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.42%.
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)69.95%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%530%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%24.66%
3.2 Future
The Earnings Per Share is expected to decrease by -2.82% on average over the next years.
PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.89% yearly.
EPS Next Y-3.92%
EPS Next 2Y-0.45%
EPS Next 3Y-0.48%
EPS Next 5Y-2.82%
Revenue Next Year-0.05%
Revenue Next 2Y-0.1%
Revenue Next 3Y-0.63%
Revenue Next 5Y-1.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 7.12 indicates a rather cheap valuation of PFE.
PFE's Price/Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 93.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of PFE to the average of the S&P500 Index (28.29), we can say PFE is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.41, the valuation of PFE can be described as very cheap.
PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 92.89% of the companies in the same industry.
PFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 91.37% of the companies listed in the same industry.
87.31% 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 | 12.77 | ||
| EV/EBITDA | 6.3 |
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)6.7
EPS Next 2Y-0.45%
EPS Next 3Y-0.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.97%, PFE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.29, PFE pays a better dividend. On top of this PFE pays more dividend than 98.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
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
118.44% 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.
DP118.44%
EPS Next 2Y-0.45%
EPS Next 3Y-0.48%
22.14
+0.1 (+0.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change0.02%
Ins Owners0.02%
Ins Owner Change1.55%
Market Cap125.57B
Analysts71.11
Price Target31.48 (42.19%)
Short Float %1.68%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
Yearly Dividend1.68
Dividend Growth(5Y)3.3%
DP118.44%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.1%
Min EPS beat(2)32.52%
Max EPS beat(2)69.69%
EPS beat(4)4
Avg EPS beat(4)46.88%
Min EPS beat(4)30.28%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)53.03%
EPS beat(12)12
Avg EPS beat(12)40.38%
EPS beat(16)16
Avg EPS beat(16)34.9%
Revenue beat(2)2
Avg Revenue beat(2)9.27%
Min Revenue beat(2)1.31%
Max Revenue beat(2)17.22%
Revenue beat(4)4
Avg Revenue beat(4)6.3%
Min Revenue beat(4)1.31%
Max Revenue beat(4)17.22%
Revenue beat(8)5
Avg Revenue beat(8)3.17%
Revenue beat(12)8
Avg Revenue beat(12)3.68%
Revenue beat(16)10
Avg Revenue beat(16)3.26%
PT rev (1m)0.79%
PT rev (3m)-2.28%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)0.14%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 7.41 | ||
| P/S | 1.97 | ||
| P/FCF | 12.77 | ||
| P/OCF | 9.85 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)3.11
EY14.05%
EPS(NY)2.99
Fwd EY13.5%
FCF(TTM)1.73
FCFY7.83%
OCF(TTM)2.25
OCFY10.15%
SpS11.22
BVpS15.55
TBVpS-6.3
PEG (NY)N/A
PEG (5Y)6.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 9.11% | ||
| ROCE | 9.56% | ||
| ROIC | 7.42% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 44.11% | ||
| OM | 25.61% | ||
| PM (TTM) | 12.62% | ||
| GM | 74.19% | ||
| FCFM | 15.46% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.11%
ROIC(5y)11.03%
ROICexc(3y)12.74%
ROICexc(5y)13.03%
ROICexgc(3y)50.8%
ROICexgc(5y)47.42%
ROCE(3y)14.25%
ROCE(5y)14.1%
ROICexcg growth 3Y-11.81%
ROICexcg growth 5Y26.33%
ROICexc growth 3Y-25.3%
ROICexc growth 5Y9.29%
OM growth 3Y-9.04%
OM growth 5Y2.68%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.02%
GM growth 5Y-1.61%
F-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.54 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 41.48% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 54.68% | ||
| Profit Quality | 122.46% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.96 |
F-Score8
WACC9.08%
ROIC/WACC0.82
Cap/Depr(3y)55.83%
Cap/Depr(5y)55.63%
Cap/Sales(3y)4.83%
Cap/Sales(5y)4.9%
Profit Quality(3y)143.88%
Profit Quality(5y)138.86%
High Growth Momentum
Growth
EPS 1Y (TTM)69.95%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%530%
EPS Next Y-3.92%
EPS Next 2Y-0.45%
EPS Next 3Y-0.48%
EPS Next 5Y-2.82%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%24.66%
Revenue Next Year-0.05%
Revenue Next 2Y-0.1%
Revenue Next 3Y-0.63%
Revenue Next 5Y-1.89%
EBIT growth 1Y114.49%
EBIT growth 3Y-16.17%
EBIT growth 5Y12.02%
EBIT Next Year23.03%
EBIT Next 3Y6.03%
EBIT Next 5Y4.91%
FCF growth 1Y105.2%
FCF growth 3Y-30.95%
FCF growth 5Y-0.32%
OCF growth 1Y46.48%
OCF growth 3Y-26.87%
OCF growth 5Y0.25%