PHILIP MORRIS INTERNATIONAL (PM)
US7181721090 - Common Stock
PM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. PM has an excellent profitability rating, but there are some minor concerns on its financial health. PM has a decent growth rate and is not valued too expensively. Finally PM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PM had positive earnings in the past year.
PM had a positive operating cash flow in the past year.
PM had positive earnings in each of the past 5 years.
In the past 5 years PM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PM (14.66%) is better than 87.50% of its industry peers.
The Return On Invested Capital of PM (25.24%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PM is in line with the industry average of 32.42%.
The 3 year average ROIC (32.26%) for PM is well above the current ROIC(25.24%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | N/A | ||
| ROIC | 25.24% |
ROA(3y)16.19%
ROA(5y)16.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.26%
ROIC(5y)34.1%
1.3 Margins
Looking at the Profit Margin, with a value of 26.34%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PM's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 37.42%, PM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
PM's Operating Margin has been stable in the last couple of years.
PM has a Gross Margin of 64.09%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.42% | ||
| PM (TTM) | 26.34% | ||
| GM | 64.09% |
OM growth 3Y-4.01%
OM growth 5Y-1.05%
PM growth 3Y-7.59%
PM growth 5Y-3.68%
GM growth 3Y-1.59%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
PM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PM has about the same amount of shares outstanding.
PM has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, PM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.54 indicates that PM is not in any danger for bankruptcy at the moment.
PM has a Altman-Z score of 3.54. This is in the better half of the industry: PM outperforms 62.50% of its industry peers.
The Debt to FCF ratio of PM is 4.90, which is a neutral value as it means it would take PM, 4.90 years of fcf income to pay off all of its debts.
PM has a better Debt to FCF ratio (4.90) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.54 |
ROIC/WACC3.22
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.89 indicates that PM may have some problems paying its short term obligations.
PM has a Current ratio of 0.89. This is comparable to the rest of the industry: PM outperforms 50.00% of its industry peers.
PM has a Quick Ratio of 0.89. This is a bad value and indicates that PM is not financially healthy enough and could expect problems in meeting its short term obligations.
PM's Quick ratio of 0.49 is on the low side compared to the rest of the industry. PM is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.30% over the past year.
PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.34% yearly.
The Revenue has grown by 8.32% in the past year. This is quite good.
The Revenue has been growing slightly by 3.54% on average over the past years.
EPS 1Y (TTM)5.3%
EPS 3Y5.08%
EPS 5Y3.34%
EPS Q2Q%14.37%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y7.1%
Revenue growth 5Y3.54%
Sales Q2Q%8.42%
3.2 Future
Based on estimates for the next years, PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.40% on average per year.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y11.41%
EPS Next 2Y11.1%
EPS Next 3Y10.98%
EPS Next 5Y8.4%
Revenue Next Year7.4%
Revenue Next 2Y7.1%
Revenue Next 3Y7.11%
Revenue Next 5Y5.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.53 indicates a rather expensive valuation of PM.
Compared to the rest of the industry, the Price/Earnings ratio of PM indicates a slightly more expensive valuation: PM is more expensive than 62.50% of the companies listed in the same industry.
PM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.60, PM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PM is valued a bit cheaper than 62.50% of the companies in the same industry.
PM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PM indicates a slightly more expensive valuation: PM is more expensive than 62.50% of the companies listed in the same industry.
62.50% of the companies in the same industry are more expensive than PM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.22 | ||
| EV/EBITDA | 16.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)6.15
EPS Next 2Y11.1%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, PM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.50, PM pays a bit more dividend than its industry peers.
PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.99%.
PM has been paying a dividend for at least 10 years, so it has a reliable track record.
PM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.99%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
PM pays out 82.75% of its income as dividend. This is not a sustainable payout ratio.
PM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.75%
EPS Next 2Y11.1%
EPS Next 3Y10.98%
PHILIP MORRIS INTERNATIONAL
NYSE:PM (11/22/2024, 1:50:09 PM)
130.56
-0.65 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap203.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.8
PEG (5Y)6.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.42% | ||
| PM (TTM) | 26.34% | ||
| GM | 64.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.3%
EPS 3Y5.08%
EPS 5Y
EPS Q2Q%
EPS Next Y11.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.32%
Revenue growth 3Y7.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y