PHILIP MORRIS INTERNATIONAL (PM)
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. While PM has a great profitability rating, there are some minor concerns on its financial health. PM has a decent growth rate and is not valued too expensively. 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
Looking at the Return On Assets, with a value of 14.66%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PM has a better Return On Invested Capital (25.24%) than 75.00% of its industry peers.
PM had an Average Return On Invested Capital over the past 3 years of 32.26%. This is significantly below the industry average of 65.76%.
The last Return On Invested Capital (25.24%) for PM is well below the 3 year average (32.26%), which needs to be investigated, but indicates that PM had better years and this may not be a problem.
| 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
With an excellent Profit Margin value of 26.34%, PM belongs to the best 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.
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 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
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.
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
PM has an Altman-Z score of 3.45. This indicates that PM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, PM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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 Debt to FCF ratio of 4.90. This is in the better half of the industry: PM outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.45 |
ROIC/WACC3.21
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.89 indicates that PM may have some problems paying its short term obligations.
PM's Current ratio of 0.89 is on the low side compared to the rest of the industry. PM is outperformed by 62.50% 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.
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%.
Measured over the past 5 years, PM shows a small growth in Earnings Per Share. The EPS has been growing by 3.34% on average per year.
PM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.32%.
Measured over the past years, PM shows a small growth in Revenue. The Revenue has been growing by 3.54% on average per year.
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
The Earnings Per Share is expected to grow by 11.10% on average over the next years. This is quite good.
Based on estimates for the next years, PM will show a small growth in Revenue. The Revenue will grow by 7.26% on average per year.
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
The Price/Earnings ratio is 19.23, which indicates a rather expensive current valuation of PM.
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.
When comparing the Price/Earnings ratio of PM to the average of the S&P500 Index (27.20), we can say PM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.54, the valuation of PM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PM indicates a somewhat cheap valuation: PM is cheaper than 62.50% of the companies listed in the same industry.
PM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
PM's Enterprise Value to EBITDA 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.
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 | 18.94 | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
PM's 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)1.66
PEG (5Y)5.76
EPS Next 2Y10.92%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 4.42%, which is a nice return.
Compared to an average industry Dividend Yield of 4.52, PM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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
82.75% 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.
DP82.75%
EPS Next 2Y10.92%
EPS Next 3Y10.77%
PHILIP MORRIS INTERNATIONAL
NYSE:PM (12/23/2024, 10:52:04 AM)
122.3
-1.92 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.11%
Inst Owner Change0.87%
Ins Owners0.14%
Ins Owner Change-11.34%
Market Cap190.16B
Analysts81.82
Price Target140.08 (14.54%)
Short Float %0.59%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Dividend Growth(5Y)2.99%
DP82.75%
Div Incr Years15
Div Non Decr Years15
Ex-Date
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)6.04%
PT rev (3m)15.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 16.54 | ||
| P/S | 5.11 | ||
| P/FCF | 18.94 | ||
| P/OCF | 16.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.94 |
EPS(TTM)6.36
EY5.2%
EPS(NY)7.39
Fwd EY6.05%
FCF(TTM)6.46
FCFY5.28%
OCF(TTM)7.41
OCFY6.06%
SpS23.94
BVpS-6.23
TBVpS-24.92
PEG (NY)1.66
PEG (5Y)5.76
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
WACC7.86%
ROIC/WACC3.21
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 Year21.09%
EBIT Next 3Y12.56%
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%