PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
NYSE:PM - New York Stock Exchange, Inc. - US7181721090 - Common Stock
Overall PM gets a fundamental rating of 5 out of 10. We evaluated PM against 8 industry peers in the Tobacco industry. There are concerns on the financial health of PM while its profitability can be described as average. 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
In the past year PM was profitable.
In the past year PM had a positive cash flow from operations.
In the past 5 years PM has always been profitable.
PM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PM has a Return On Assets of 14.66%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
With a decent Return On Invested Capital value of 25.24%, PM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PM is significantly below the industry average of 65.76%.
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
PM has a Profit Margin of 26.34%. This is in the better half of the industry: PM outperforms 75.00% of its industry peers.
PM's Profit Margin has declined in the last couple of years.
PM has a better Operating Margin (37.42%) than 62.50% of its industry peers.
PM's Operating Margin has been stable in the last couple of years.
PM has a better Gross Margin (64.09%) than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PM is creating value.
The number of shares outstanding for PM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PM has about the same amount of shares outstanding.
Compared to 1 year ago, PM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that PM is not in any danger for bankruptcy at the moment.
PM has a better Altman-Z score (3.45) than 75.00% of its industry peers.
PM has a debt to FCF ratio of 4.90. This is a neutral value as PM would need 4.90 years to pay back of all of its debts.
PM has a Debt to FCF ratio of 4.90. This is comparable to the rest of the industry: PM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.45 |
ROIC/WACC3.2
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.89 indicates that PM may have some problems paying its short term obligations.
The Current ratio of PM (0.89) is worse than 62.50% of its industry peers.
A Quick Ratio of 0.49 indicates that PM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, PM is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.30%.
PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.34% yearly.
PM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.32%.
PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.54% yearly.
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
PM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.10% yearly.
The Revenue is expected to grow by 7.26% on average over the next years.
EPS Next Y11.56%
EPS Next 2Y10.92%
EPS Next 3Y10.77%
EPS Next 5Y11.1%
Revenue Next Year7.33%
Revenue Next 2Y6.77%
Revenue Next 3Y6.93%
Revenue Next 5Y7.26%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.32, the valuation of PM can be described as rather expensive.
PM's Price/Earnings ratio is a bit more expensive when compared to the industry. PM is more expensive than 62.50% of the companies in the same industry.
PM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.62, which indicates a correct valuation of PM.
PM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PM is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.37. PM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 16.62 |
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.
PM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PM is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.03 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PM may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)5.79
EPS Next 2Y10.92%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 4.51%, which is a nice return.
PM's Dividend Yield is a higher than the industry average which is at 4.64.
PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.99%.
PM has paid a dividend for at least 10 years, which is a reliable track record.
PM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.99%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
82.75% of the earnings are spent on dividend by PM. 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 2Y10.92%
EPS Next 3Y10.77%
PHILIP MORRIS INTERNATIONAL
NYSE:PM (1/22/2025, 7:41:10 PM)
After market: 122.89 0 (0%)122.89
-0.92 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.11%
Inst Owner Change-0.13%
Ins Owners0.14%
Ins Owner Change-11.81%
Market Cap191.07B
Analysts81.82
Price Target140.25 (14.13%)
Short Float %0.59%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend5.13
Dividend Growth(5Y)2.99%
DP82.75%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-1.59%
Max EPS beat(2)1.78%
EPS beat(4)2
Avg EPS beat(4)-1.34%
Min EPS beat(4)-8.72%
Max EPS beat(4)3.16%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)8
Avg EPS beat(12)2.75%
EPS beat(16)10
Avg EPS beat(16)2.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)0.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)8
Avg Revenue beat(12)1.54%
Revenue beat(16)9
Avg Revenue beat(16)0.82%
PT rev (1m)0.12%
PT rev (3m)11.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.32 | ||
| Fwd PE | 16.62 | ||
| P/S | 5.13 | ||
| P/FCF | 19.03 | ||
| P/OCF | 16.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.9 |
EPS(TTM)6.36
EY5.18%
EPS(NY)7.39
Fwd EY6.02%
FCF(TTM)6.46
FCFY5.25%
OCF(TTM)7.41
OCFY6.03%
SpS23.94
BVpS-6.23
TBVpS-24.92
PEG (NY)1.67
PEG (5Y)5.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | N/A | ||
| ROCE | 31.99% | ||
| ROIC | 25.24% | ||
| ROICexc | 27.97% | ||
| ROICexgc | 106.41% | ||
| OM | 37.42% | ||
| PM (TTM) | 26.34% | ||
| GM | 64.09% | ||
| FCFM | 26.98% |
ROA(3y)16.19%
ROA(5y)16.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.26%
ROIC(5y)34.1%
ROICexc(3y)37.61%
ROICexc(5y)43.16%
ROICexgc(3y)104.47%
ROICexgc(5y)99.94%
ROCE(3y)43.2%
ROCE(5y)44.77%
ROICexcg growth 3Y-0.37%
ROICexcg growth 5Y-5.98%
ROICexc growth 3Y-19.5%
ROICexc growth 5Y-12.96%
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%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 147.85% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.17% | ||
| Profit Quality | 102.4% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 3.45 |
F-Score7
WACC7.89%
ROIC/WACC3.2
Cap/Depr(3y)86.67%
Cap/Depr(5y)81.95%
Cap/Sales(3y)3.17%
Cap/Sales(5y)2.9%
Profit Quality(3y)110.83%
Profit Quality(5y)115.19%
High Growth Momentum
Growth
EPS 1Y (TTM)5.3%
EPS 3Y5.08%
EPS 5Y3.34%
EPS Q2Q%14.37%
EPS Next Y11.56%
EPS Next 2Y10.92%
EPS Next 3Y10.77%
EPS Next 5Y11.1%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y7.1%
Revenue growth 5Y3.54%
Sales Q2Q%8.42%
Revenue Next Year7.33%
Revenue Next 2Y6.77%
Revenue Next 3Y6.93%
Revenue Next 5Y7.26%
EBIT growth 1Y8.47%
EBIT growth 3Y2.81%
EBIT growth 5Y2.45%
EBIT Next Year21%
EBIT Next 3Y12.25%
EBIT Next 5Y9.41%
FCF growth 1Y-6.37%
FCF growth 3Y-5.05%
FCF growth 5Y-0.4%
OCF growth 1Y-1.92%
OCF growth 3Y-2.11%
OCF growth 5Y-0.58%