PFIZER INC (PFE)
US7170811035 - Common Stock
PFE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 193 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. 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 has a better Return On Assets (1.94%) than 84.82% of its industry peers.
With an excellent Return On Equity value of 4.61%, PFE belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
The Return On Invested Capital of PFE (6.52%) is better than 84.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is significantly below the industry average of 43.18%.
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
The Profit Margin of PFE (7.07%) is better than 85.86% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
PFE has a Operating Margin of 21.87%. This is amongst the best in the industry. PFE outperforms 87.43% 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 76.96% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| 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
PFE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
Compared to 1 year ago, PFE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE has a Altman-Z score of 1.95. This is in the better half of the industry: PFE outperforms 68.59% 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 has a Debt to FCF ratio of 8.23. This is amongst the best in the industry. PFE outperforms 84.29% 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 has a worse Debt to Equity ratio (0.69) than 68.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.71
WACC9.24%
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.
The Current ratio of PFE (1.00) is worse than 85.34% of its industry peers.
A Quick Ratio of 0.73 indicates that PFE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, PFE is doing worse than 88.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PFE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.10%.
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
Based on estimates for the next years, PFE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.79% on average per year.
The Revenue is expected to grow by 0.86% on average over the next years.
EPS Next Y61.41%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
EPS Next 5Y9.79%
Revenue Next Year7.18%
Revenue Next 2Y3.7%
Revenue Next 3Y2.65%
Revenue Next 5Y0.86%
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.
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
With a Price/Earnings ratio of 10.22, the valuation of PFE can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 92.15% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. PFE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.02, the valuation of PFE can be described as very reasonable.
90.05% 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 22.83, PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaper than 86.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 84.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 9.6 |
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.
PFE's earnings are expected to grow with 18.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y26.37%
EPS Next 3Y18.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.67%, PFE is a good candidate for dividend investing.
PFE's Dividend Yield is rather good when compared to the industry average which is at 4.42. PFE pays more dividend than 97.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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.
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 (12/20/2024, 8:04:00 PM)
After market: 26.36 0 (0%)26.36
+0.59 (+2.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.53%
Inst Owner Change0.87%
Ins Owners0.02%
Ins Owner Change-0.45%
Market Cap149.38B
Analysts72
Price Target33.05 (25.38%)
Short Float %1.6%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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)-2.13%
PT rev (3m)-1.84%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-15.43%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 9.02 | ||
| P/S | 2.49 | ||
| P/FCF | 18.16 | ||
| P/OCF | 13.26 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)2.58
EY9.79%
EPS(NY)2.92
Fwd EY11.09%
FCF(TTM)1.45
FCFY5.51%
OCF(TTM)1.99
OCFY7.54%
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
WACC9.24%
ROIC/WACC0.71
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 5Y9.79%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y7.46%
Sales Q2Q%33.78%
Revenue Next Year7.18%
Revenue Next 2Y3.7%
Revenue Next 3Y2.65%
Revenue Next 5Y0.86%
EBIT growth 1Y-34.77%
EBIT growth 3Y8.85%
EBIT growth 5Y9.07%
EBIT Next Year201.4%
EBIT Next 3Y46.75%
EBIT Next 5Y27.83%
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%