Why NYSE:PFE provides a good dividend, while having solid fundamentals.

Our stock screening tool has identified PFIZER INC (NYSE:PFE) as a strong dividend contender with robust fundamentals. NYSE:PFE exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Understanding NYSE:PFE's Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:PFE was assigned a score of 8 for dividend:

• PFE has a Yearly Dividend Yield of 5.11%, which is a nice return.
• PFE's Dividend Yield is rather good when compared to the industry average which is at 3.91. PFE pays more dividend than 97.62% of the companies in the same industry.
• PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.68.
• PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
• PFE has not decreased their dividend for at least 10 years, which is a reliable track record.

Deciphering NYSE:PFE's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:PFE has earned a 5 out of 10:

• PFE has a better Altman-Z score (2.68) than 72.86% of its industry peers.
• With an excellent Debt to FCF ratio value of 6.13, PFE belongs to the best of the industry, outperforming 84.76% of the companies in the same industry.
• PFE has a Current Ratio of 2.12. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for NYSE:PFE

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:PFE, the assigned 8 is a significant indicator of profitability:

• PFE's Return On Assets of 9.75% is amongst the best of the industry. PFE outperforms 90.95% of its industry peers.
• Looking at the Return On Equity, with a value of 21.68%, PFE belongs to the top of the industry, outperforming 91.90% of the companies in the same industry.
• The Return On Invested Capital of PFE (11.96%) is better than 90.00% of its industry peers.
• The 3 year average ROIC (16.16%) for PFE is well above the current ROIC(11.96%). The reason for the recent decline needs to be investigated.
• PFE has a better Profit Margin (27.55%) than 94.76% of its industry peers.
• Looking at the Operating Margin, with a value of 31.21%, PFE belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
• PFE's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 68.78%, PFE is doing good in the industry, outperforming 74.29% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of PFE

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.