PFIZER INC (PFE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFE - US7170811035 - Common Stock
25.48 USD
+0.19 (+0.75%)
25.47 USD
-0.01 (-0.04%)
Taking everything into account, PFE scores 6 out of 10 in our fundamental rating. PFE was compared to 191 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but 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
In the past year PFE was profitable.
PFE had a positive operating cash flow in the past year.
In the past 5 years PFE has always been profitable.
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 85.86% of its industry peers.
PFE's Return On Equity of 10.59% is amongst the best of the industry. PFE outperforms 85.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.39%, PFE belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFE is in line with the industry average of 12.85%.
| 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
PFE has a better Profit Margin (15.65%) than 87.96% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
PFE has a better Operating Margin (29.12%) than 93.72% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.95%, PFE belongs to the best of the industry, outperforming 81.68% 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 | 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
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.
The number of shares outstanding for PFE has been increased compared to 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 2.21 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.21, PFE is in line with its industry, outperforming 58.64% of the companies in the same industry.
PFE has a debt to FCF ratio of 5.95. This is a neutral value as PFE would need 5.95 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.95, PFE belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that PFE is somewhat dependend on debt financing.
PFE has a worse Debt to Equity ratio (0.62) than 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.94
WACC8.96%
2.3 Liquidity
PFE has a Current Ratio of 1.28. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PFE (1.28) is worse than 77.49% 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.
PFE has a worse Quick ratio (0.97) than 78.53% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
Looking at the last year, PFE shows a small growth in Revenue. The Revenue has grown by 3.90% in the last year.
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
The Earnings Per Share is expected to decrease by -4.95% on average over the next years.
Based on estimates for the next years, PFE will show a decrease in Revenue. The Revenue will decrease by -3.04% on average per year.
EPS Next Y1.34%
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
EPS Next 5Y-4.95%
Revenue Next Year-1.36%
Revenue Next 2Y-1.53%
Revenue Next 3Y-2.16%
Revenue Next 5Y-3.04%
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
Based on the Price/Earnings ratio of 7.96, the valuation of PFE can be described as very cheap.
PFE's Price/Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 93.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, PFE is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.39, the valuation of PFE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 91.10% of the companies are valued more expensively.
PFE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.39 |
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 92.67% of the companies listed in the same industry.
87.43% 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 | 13.96 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PFE may justify a higher PE ratio.
PFE's earnings are expected to decrease with -2.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)5.95
PEG (5Y)7.5
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.91%, which is a nice return.
Compared to an average industry Dividend Yield of 0.42, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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
98.76% of the earnings are spent on dividend by PFE. This is not a sustainable payout ratio.
The Dividend Rate of PFE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP98.76%
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
25.48
+0.19 (+0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.61%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner Change0%
Market Cap144.87B
Revenue(TTM)62.79B
Net Income(TTM)9.83B
Analysts71.52
Price Target29.42 (15.46%)
Short Float %2.46%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
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)34.46%
Min EPS beat(2)32.91%
Max EPS beat(2)36.01%
EPS beat(4)4
Avg EPS beat(4)34.72%
Min EPS beat(4)32.52%
Max EPS beat(4)37.45%
EPS beat(8)8
Avg EPS beat(8)54.91%
EPS beat(12)12
Avg EPS beat(12)44.86%
EPS beat(16)16
Avg EPS beat(16)38.4%
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)-0.05%
PT rev (3m)-1.61%
EPS NQ rev (1m)-5.21%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.39 | ||
| P/S | 2.31 | ||
| P/FCF | 13.96 | ||
| P/OCF | 11.08 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)3.2
EY12.56%
EPS(NY)3.04
Fwd EY11.92%
FCF(TTM)1.82
FCFY7.16%
OCF(TTM)2.3
OCFY9.03%
SpS11.04
BVpS16.32
TBVpS-4.86
PEG (NY)5.95
PEG (5Y)7.5
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 | 2.21 |
F-Score6
WACC8.96%
ROIC/WACC0.94
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 Y1.34%
EPS Next 2Y-1.16%
EPS Next 3Y-2.35%
EPS Next 5Y-4.95%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-5.92%
Revenue Next Year-1.36%
Revenue Next 2Y-1.53%
Revenue Next 3Y-2.16%
Revenue Next 5Y-3.04%
EBIT growth 1Y-5.75%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year16.58%
EBIT Next 3Y4.11%
EBIT Next 5Y-0.15%
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 6 / 10 to PFE.
Can you provide the valuation status for PFIZER INC?
ChartMill assigns a valuation rating of 8 / 10 to PFIZER INC (PFE). This can be considered as Undervalued.
What is the profitability of PFE stock?
PFIZER INC (PFE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PFIZER INC (PFE) stock?
The Price/Earnings (PE) ratio for PFIZER INC (PFE) is 7.96 and the Price/Book (PB) ratio is 1.56.
How financially healthy is PFIZER INC?
The financial health rating of PFIZER INC (PFE) is 4 / 10.