PFIZER INC (PFE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PFE - US7170811035 - Common Stock
25.19 USD
+0.15 (+0.6%)
25.2499 USD
+0.06 (+0.24%)
Overall PFE gets a fundamental rating of 6 out of 10. We evaluated PFE against 191 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but there are some minor concerns on its financial health. PFE has a bad growth rate and is valued cheaply. PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFE had positive earnings in the past year.
PFE had a positive operating cash flow in the past year.
PFE had positive earnings in each of the past 5 years.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.71%, PFE belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
With an excellent Return On Equity value of 10.59%, PFE belongs to the best of the industry, outperforming 85.34% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.39%, PFE belongs to the best 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
The Profit Margin of PFE (15.65%) is better than 87.96% of its industry peers.
In the last couple of years the Profit Margin of PFE has declined.
With an excellent Operating Margin value of 29.12%, PFE belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
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.
PFE's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PFE 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 more shares outstanding
PFE has a better debt/assets ratio than last year.
2.2 Solvency
PFE has an Altman-Z score of 2.20. 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.
With a Altman-Z score value of 2.20, PFE perfoms like the industry average, 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.
PFE has a Debt to FCF ratio of 5.95. This is amongst the best in the industry. PFE outperforms 81.15% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that PFE is somewhat dependend on debt financing.
The Debt to Equity ratio of PFE (0.62) is worse than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.94
WACC8.89%
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.
Looking at the Current ratio, with a value of 1.28, PFE is doing worse than 76.96% of the companies in the same industry.
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.
With a Quick ratio value of 0.97, PFE is not doing good in the industry: 78.53% of the companies in the same industry are doing better.
| 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.
PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
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)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
Based on estimates for the next years, PFE will show a decrease in Earnings Per Share. The EPS will decrease by -4.95% on average per year.
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 Y2.02%
EPS Next 2Y0.13%
EPS Next 3Y-1.08%
EPS Next 5Y-4.95%
Revenue Next Year-0.89%
Revenue Next 2Y-1.05%
Revenue Next 3Y-1.85%
Revenue Next 5Y-3.04%
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
A Price/Earnings ratio of 7.87 indicates a rather cheap valuation of PFE.
PFE's Price/Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 93.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of PFE to the average of the S&P500 Index (26.38), we can say PFE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.08, the valuation of PFE can be described as reasonable.
Based on the Price/Forward Earnings ratio, PFE is valued cheaper than 90.58% 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 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
92.67% 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 86.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PFE does not grow enough to justify the current Price/Earnings ratio.
PFE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.9
PEG (5Y)7.41
EPS Next 2Y0.13%
EPS Next 3Y-1.08%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.87%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 0.52. PFE pays more dividend than 98.43% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
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
PFE pays out 98.76% of its income as dividend. 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.
DP98.76%
EPS Next 2Y0.13%
EPS Next 3Y-1.08%
25.19
+0.15 (+0.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.44%
Inst Owner Change0.19%
Ins Owners0.02%
Ins Owner Change0%
Market Cap143.22B
Revenue(TTM)62.79B
Net Income(TTM)9.83B
Analysts71.52
Price Target29.69 (17.86%)
Short Float %2.45%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.87% |
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)0.3%
PT rev (3m)-0.07%
EPS NQ rev (1m)-6.32%
EPS NQ rev (3m)-15.32%
EPS NY rev (1m)3.25%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.08 | ||
| P/S | 2.28 | ||
| P/FCF | 13.8 | ||
| P/OCF | 10.95 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.02 |
EPS(TTM)3.2
EY12.7%
EPS(NY)3.12
Fwd EY12.38%
FCF(TTM)1.82
FCFY7.24%
OCF(TTM)2.3
OCFY9.13%
SpS11.04
BVpS16.32
TBVpS-4.86
PEG (NY)3.9
PEG (5Y)7.41
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 | 2.2 |
F-Score6
WACC8.89%
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 Y2.02%
EPS Next 2Y0.13%
EPS Next 3Y-1.08%
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-0.89%
Revenue Next 2Y-1.05%
Revenue Next 3Y-1.85%
Revenue Next 5Y-3.04%
EBIT growth 1Y-5.75%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year18.32%
EBIT Next 3Y5.18%
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.
What is the valuation status for PFE stock?
ChartMill assigns a valuation rating of 8 / 10 to PFIZER INC (PFE). This can be considered as Undervalued.
How profitable is PFIZER INC (PFE) stock?
PFIZER INC (PFE) has a profitability rating of 8 / 10.
What is the valuation of PFIZER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PFIZER INC (PFE) is 7.87 and the Price/Book (PB) ratio is 1.54.
What is the expected EPS growth for PFIZER INC (PFE) stock?
The Earnings per Share (EPS) of PFIZER INC (PFE) is expected to grow by 2.02% in the next year.