PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PFE. PFE was compared to 194 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but there are 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.
In the past year PFE had a positive cash flow from operations.
In the past 5 years PFE has always been profitable.
Of the past 5 years PFE 4 years 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 85.41% of its industry peers.
PFE's Return On Equity of 4.61% is amongst the best of the industry. PFE outperforms 85.95% of its industry peers.
The Return On Invested Capital of PFE (5.71%) is better than 82.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROIC | 5.71% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.07%, PFE belongs to the top of the industry, outperforming 85.95% 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 21.92% is amongst the best of the industry. PFE outperforms 86.49% of its industry peers.
In the last couple of years the Operating Margin of PFE has grown nicely.
PFE's Gross Margin of 70.82% is fine compared to the rest of the industry. PFE outperforms 76.76% of its industry peers.
In the last couple of years the Gross Margin of PFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% |
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
PFE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for PFE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PFE has an Altman-Z score of 1.94. 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.
PFE has a better Altman-Z score (1.94) than 68.11% of its industry peers.
The Debt to FCF ratio of PFE is 8.23, which is on the high side as it means it would take PFE, 8.23 years of fcf income to pay off all of its debts.
PFE's Debt to FCF ratio of 8.23 is amongst the best of the industry. PFE outperforms 82.70% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 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 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.6
WACC9.51%
2.3 Liquidity
PFE has a Current Ratio of 1.00. 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 worse Current ratio (1.00) than 85.95% of its industry peers.
A Quick Ratio of 0.73 indicates that PFE may have some problems paying its short term obligations.
PFE's Quick ratio of 0.73 is on the low side compared to the rest of the industry. PFE is outperformed by 88.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.95%, which is quite impressive.
PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
Looking at the last year, PFE shows a small growth in Revenue. The Revenue has grown by 7.42% in the last year.
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
PFE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.50% yearly.
Based on estimates for the next years, PFE will show a decrease in Revenue. The Revenue will decrease by -1.79% on average per year.
EPS Next Y-4.05%
EPS Next 2Y-0.15%
EPS Next 3Y-0.45%
EPS Next 5Y-2.5%
Revenue Next Year-0.06%
Revenue Next 2Y0.15%
Revenue Next 3Y-0.11%
Revenue Next 5Y-1.79%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.46, the valuation of PFE can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 92.97% of the companies listed in the same industry.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.81 indicates a reasonable valuation of PFE.
Based on the Price/Forward Earnings ratio, PFE is valued cheaper than 90.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (23.06), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
86.49% of the companies in the same industry are more expensive than PFE, based on the Enterprise Value to EBITDA ratio.
PFE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PFE is cheaper than 85.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.12 | ||
| EV/EBITDA | 9.45 |
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)7.96
EPS Next 2Y-0.15%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.71%, PFE is a good candidate for dividend investing.
PFE's Dividend Yield is rather good when compared to the industry average which is at 4.34. PFE pays more dividend than 97.84% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.71% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The Dividend Rate of PFE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP222.18%
EPS Next 2Y-0.15%
EPS Next 3Y-0.45%
26.3
+0.4 (+1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.53%
Inst Owner Change-0.03%
Ins Owners0.02%
Ins Owner Change-0.22%
Market Cap149.04B
Analysts71.72
Price Target32.12 (22.13%)
Short Float %1.3%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.71% |
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)-0.29%
PT rev (3m)-4.87%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)2.11%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 8.81 | ||
| P/S | 2.48 | ||
| P/FCF | 18.12 | ||
| P/OCF | 13.23 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.45 |
EPS(TTM)3.11
EY11.83%
EPS(NY)2.98
Fwd EY11.35%
FCF(TTM)1.45
FCFY5.52%
OCF(TTM)1.99
OCFY7.56%
SpS10.61
BVpS16.28
TBVpS-6.4
PEG (NY)N/A
PEG (5Y)7.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROCE | 7.48% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.04% | ||
| ROICexgc | 23.82% | ||
| OM | 21.92% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% | ||
| FCFM | 13.68% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score6
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 | 4.55 | ||
| Cash Conversion | 56.11% | ||
| Profit Quality | 193.46% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.94 |
F-Score6
WACC9.51%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)69.95%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%530%
EPS Next Y-4.05%
EPS Next 2Y-0.15%
EPS Next 3Y-0.45%
EPS Next 5Y-2.5%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%24.66%
Revenue Next Year-0.06%
Revenue Next 2Y0.15%
Revenue Next 3Y-0.11%
Revenue Next 5Y-1.79%
EBIT growth 1Y-9.41%
EBIT growth 3Y-16.17%
EBIT growth 5Y12.02%
EBIT Next Year20.75%
EBIT Next 3Y5.7%
EBIT Next 5Y4.25%
FCF growth 1Y0.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.49%
OCF growth 3YN/A
OCF growth 5YN/A