PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
NYSE:PM - New York Stock Exchange, Inc. - US7181721090 - Common Stock - Currency: USD
Taking everything into account, PM scores 5 out of 10 in our fundamental rating. PM was compared to 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 is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years PM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.38%, PM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
PM's Return On Invested Capital of 26.67% is fine compared to the rest of the industry. PM outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PM is significantly below the industry average of 65.29%.
The last Return On Invested Capital (26.67%) for PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | N/A | ||
| ROIC | 26.67% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
1.3 Margins
PM's Profit Margin of 18.57% is fine compared to the rest of the industry. PM outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of PM has declined.
PM has a Operating Margin of 35.93%. This is in the better half of the industry: PM outperforms 75.00% of its industry peers.
PM's Operating Margin has been stable in the last couple of years.
PM has a Gross Margin of 64.81%. 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 | 35.93% | ||
| PM (TTM) | 18.57% | ||
| GM | 64.81% |
OM growth 3Y-4.61%
OM growth 5Y-0.93%
PM growth 3Y-13.73%
PM growth 5Y-5.04%
GM growth 3Y-1.62%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PM is creating value.
The number of shares outstanding for PM remains at a similar level compared to 1 year ago.
The number of shares outstanding for PM remains at a similar level compared to 5 years ago.
Compared to 1 year ago, PM has a worse debt to assets ratio.
2.2 Solvency
PM has an Altman-Z score of 3.95. This indicates that PM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.95, PM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of PM is 4.24, which is a neutral value as it means it would take PM, 4.24 years of fcf income to pay off all of its debts.
PM's Debt to FCF ratio of 4.24 is in line compared to the rest of the industry. PM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 3.95 |
ROIC/WACC3.33
WACC8%
2.3 Liquidity
A Current Ratio of 0.88 indicates that PM may have some problems paying its short term obligations.
The Current ratio of PM (0.88) is worse than 62.50% of its industry peers.
PM has a Quick Ratio of 0.88. 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 0.47 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 | 0.88 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.99% over the past year.
The Earnings Per Share has been growing slightly by 4.72% on average over the past years.
Looking at the last year, PM shows a small growth in Revenue. The Revenue has grown by 7.44% in the last year.
PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
EPS 1Y (TTM)8.99%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%13.97%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.28%
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 11.09% on average per year.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y12.26%
EPS Next 2Y11.31%
EPS Next 3Y10.79%
EPS Next 5Y11.09%
Revenue Next Year5.34%
Revenue Next 2Y6.25%
Revenue Next 3Y7.14%
Revenue Next 5Y7%
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
PM is valuated rather expensively with a Price/Earnings ratio of 23.57.
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.
The average S&P500 Price/Earnings ratio is at 29.63. PM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 21.00, which indicates a rather expensive current valuation of PM.
PM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PM to the average of the S&P500 Index (22.68), we can say PM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.57 | ||
| Fwd PE | 21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PM is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PM indicates a somewhat cheap valuation: PM is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 17.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PM may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)4.99
EPS Next 2Y11.31%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.30, PM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.76%.
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)2.76%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
116.53% of the earnings are spent on dividend by PM. This is not a sustainable payout ratio.
The dividend of PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP116.53%
EPS Next 2Y11.31%
EPS Next 3Y10.79%
154.4
+2.83 (+1.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.11%
Inst Owner Change1.1%
Ins Owners0.14%
Ins Owner Change-3.46%
Market Cap240.07B
Analysts81.74
Price Target139.66 (-9.55%)
Short Float %0.46%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP116.53%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.11%
Min EPS beat(2)0.44%
Max EPS beat(2)1.78%
EPS beat(4)3
Avg EPS beat(4)0.95%
Min EPS beat(4)-1.59%
Max EPS beat(4)3.16%
EPS beat(8)5
Avg EPS beat(8)0.1%
EPS beat(12)9
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)2.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)-0.13%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)0.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)7
Avg Revenue beat(12)1.42%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)-0.42%
PT rev (3m)5.72%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-6.71%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.57 | ||
| Fwd PE | 21 | ||
| P/S | 6.34 | ||
| P/FCF | 22.28 | ||
| P/OCF | 19.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)6.55
EY4.24%
EPS(NY)7.35
Fwd EY4.76%
FCF(TTM)6.93
FCFY4.49%
OCF(TTM)7.86
OCFY5.09%
SpS24.36
BVpS-7.56
TBVpS-25.52
PEG (NY)1.92
PEG (5Y)4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | N/A | ||
| ROCE | 35.01% | ||
| ROIC | 26.67% | ||
| ROICexc | 29.9% | ||
| ROICexgc | 151.58% | ||
| OM | 35.93% | ||
| PM (TTM) | 18.57% | ||
| GM | 64.81% | ||
| FCFM | 28.44% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
ROICexc(3y)27.51%
ROICexc(5y)37.8%
ROICexgc(3y)111.48%
ROICexgc(5y)109.03%
ROCE(3y)35.09%
ROCE(5y)42.41%
ROICexcg growth 3Y8.03%
ROICexcg growth 5Y11.03%
ROICexc growth 3Y-18.85%
ROICexc growth 5Y-9.39%
OM growth 3Y-4.61%
OM growth 5Y-0.93%
PM growth 3Y-13.73%
PM growth 5Y-5.04%
GM growth 3Y-1.62%
GM growth 5Y0.03%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.24 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 80.81% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 8.73 | ||
| Cash Conversion | 79.35% | ||
| Profit Quality | 153.16% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 3.95 |
F-Score6
WACC8%
ROIC/WACC3.33
Cap/Depr(3y)88.63%
Cap/Depr(5y)80.44%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.09%
Profit Quality(3y)120.71%
Profit Quality(5y)120.05%
High Growth Momentum
Growth
EPS 1Y (TTM)8.99%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%13.97%
EPS Next Y12.26%
EPS Next 2Y11.31%
EPS Next 3Y10.79%
EPS Next 5Y11.09%
Revenue 1Y (TTM)7.44%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.28%
Revenue Next Year5.34%
Revenue Next 2Y6.25%
Revenue Next 3Y7.14%
Revenue Next 5Y7%
EBIT growth 1Y1.83%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year16.95%
EBIT Next 3Y10.4%
EBIT Next 5Y9.23%
FCF growth 1Y36.66%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y32.74%
OCF growth 3Y0.69%
OCF growth 5Y3.9%