PFIZER INC (1PFE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PFE - US7170811035 - Common Stock
21.805 EUR
-0.09 (-0.41%)
Taking everything into account, 1PFE scores 4 out of 10 in our fundamental rating. 1PFE was compared to 55 industry peers in the Pharmaceuticals industry. 1PFE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1PFE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- 1PFE had positive earnings in the past year.
- In the past year 1PFE had a positive cash flow from operations.
- In the past 5 years 1PFE has always been profitable.
- 1PFE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1PFE (4.71%) is comparable to the rest of the industry.
- 1PFE has a Return On Equity (10.59%) which is comparable to the rest of the industry.
- The Return On Invested Capital of 1PFE (7.96%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for 1PFE is below the industry average of 14.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 10.59% | ||
| ROIC | 7.96% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)10.72%
ROIC(5y)10.58%
1.3 Margins
- 1PFE has a Profit Margin of 15.65%. This is in the better half of the industry: 1PFE outperforms 65.45% of its industry peers.
- In the last couple of years the Profit Margin of 1PFE has declined.
- Looking at the Operating Margin, with a value of 29.12%, 1PFE is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
- 1PFE's Operating Margin has improved in the last couple of years.
- 1PFE has a Gross Margin of 74.95%. This is in the better half of the industry: 1PFE outperforms 74.55% of its industry peers.
- In the last couple of years the Gross Margin of 1PFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.12% | ||
| PM (TTM) | 15.65% | ||
| GM | 74.95% |
OM growth 3Y-8.1%
OM growth 5Y3.31%
PM growth 3Y-22.43%
PM growth 5Y-20.41%
GM growth 3Y6.09%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PFE is still creating some value.
- 1PFE has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1PFE has more shares outstanding
- 1PFE has a better debt/assets ratio than last year.
2.2 Solvency
- 1PFE has an Altman-Z score of 2.22. This is not the best score and indicates that 1PFE is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.22, 1PFE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- 1PFE has a debt to FCF ratio of 5.95. This is a neutral value as 1PFE would need 5.95 years to pay back of all of its debts.
- 1PFE has a Debt to FCF ratio of 5.95. This is comparable to the rest of the industry: 1PFE outperforms 54.55% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that 1PFE is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1PFE (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.95 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.92
WACC8.68%
2.3 Liquidity
- A Current Ratio of 1.28 indicates that 1PFE should not have too much problems paying its short term obligations.
- The Current ratio of 1PFE (1.28) is comparable to the rest of the industry.
- 1PFE has a Quick Ratio of 1.28. This is a bad value and indicates that 1PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1PFE has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- 1PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.03%, which is quite impressive.
- Measured over the past 5 years, 1PFE shows a small growth in Earnings Per Share. The EPS has been growing by 1.06% on average per year.
- 1PFE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.90%.
- Measured over the past years, 1PFE shows a quite strong growth in Revenue. The Revenue has been growing by 9.10% on average per year.
EPS 1Y (TTM)24.03%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%-17.92%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-5.92%
3.2 Future
- 1PFE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.87% yearly.
- Based on estimates for the next years, 1PFE will show a decrease in Revenue. The Revenue will decrease by -3.45% on average per year.
EPS Next Y1.37%
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
EPS Next 5Y-5.87%
Revenue Next Year-1.63%
Revenue Next 2Y-1.63%
Revenue Next 3Y-2.12%
Revenue Next 5Y-3.45%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.99, which indicates a rather cheap valuation of 1PFE.
- 98.18% of the companies in the same industry are more expensive than 1PFE, based on the Price/Earnings ratio.
- 1PFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 8.48, the valuation of 1PFE can be described as reasonable.
- 98.18% of the companies in the same industry are more expensive than 1PFE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1PFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.99 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PFE indicates a rather cheap valuation: 1PFE is cheaper than 87.27% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1PFE is valued cheaper than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.03 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PFE does not grow enough to justify the current Price/Earnings ratio.
- 1PFE's earnings are expected to decrease with -2.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)5.85
PEG (5Y)7.52
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
5. Dividend
5.1 Amount
- 1PFE has a Yearly Dividend Yield of 6.59%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.62, 1PFE pays a better dividend. On top of this 1PFE pays more dividend than 98.18% of the companies listed in the same industry.
- 1PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
- The dividend of 1PFE has a limited annual growth rate of 3.30%.
Dividend Growth(5Y)3.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 98.76% of the earnings are spent on dividend by 1PFE. This is not a sustainable payout ratio.
- The Dividend Rate of 1PFE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP98.76%
EPS Next 2Y-1.47%
EPS Next 3Y-2.28%
PFIZER INC / 1PFE.MI FAQ
What is the ChartMill fundamental rating of PFIZER INC (1PFE.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1PFE.MI.
What is the valuation status of PFIZER INC (1PFE.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to PFIZER INC (1PFE.MI). This can be considered as Undervalued.
What is the profitability of 1PFE stock?
PFIZER INC (1PFE.MI) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for 1PFE stock?
The Earnings per Share (EPS) of PFIZER INC (1PFE.MI) is expected to grow by 1.37% in the next year.
How sustainable is the dividend of PFIZER INC (1PFE.MI) stock?
The dividend rating of PFIZER INC (1PFE.MI) is 6 / 10 and the dividend payout ratio is 98.76%.