PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
BIT:1PM - Euronext Milan - US7181721090 - Common Stock - Currency: EUR
Overall 1PM gets a fundamental rating of 4 out of 10. We evaluated 1PM against 4 industry peers in the Tobacco industry. There are concerns on the financial health of 1PM while its profitability can be described as average. 1PM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1PM was profitable.
In the past year 1PM had a positive cash flow from operations.
In the past 5 years 1PM has always been profitable.
In the past 5 years 1PM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.98%, 1PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
1PM has a Return On Invested Capital of 26.29%. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PM is above the industry average of 21.03%.
The last Return On Invested Capital (26.29%) for 1PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROIC | 26.29% |
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
1PM has a better Profit Margin (21.01%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of 1PM has declined.
The Operating Margin of 1PM (37.78%) is better than 80.00% of its industry peers.
1PM's Operating Margin has been stable in the last couple of years.
1PM has a Gross Margin of 66.45%. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of 1PM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% |
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
1PM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1PM remains at a similar level compared to 1 year ago.
The number of shares outstanding for 1PM remains at a similar level compared to 5 years ago.
Compared to 1 year ago, 1PM has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1PM is 5.72, which is a neutral value as it means it would take 1PM, 5.72 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1PM (5.72) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC3.37
WACC7.8%
2.3 Liquidity
1PM has a Current Ratio of 0.83. This is a bad value and indicates that 1PM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1PM (0.83) is better than 100.00% of its industry peers.
A Quick Ratio of 0.83 indicates that 1PM may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.83, 1PM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
1PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.36%, which is quite good.
1PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.72% yearly.
1PM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
Measured over the past years, 1PM shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
EPS 1Y (TTM)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
3.2 Future
Based on estimates for the next years, 1PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y17.55%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
EPS Next 5Y11.07%
Revenue Next Year9.12%
Revenue Next 2Y8.77%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.50 indicates a rather expensive valuation of 1PM.
Compared to the rest of the industry, the Price/Earnings ratio of 1PM indicates a slightly more expensive valuation: 1PM is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, 1PM is valued at the same level.
With a Price/Forward Earnings ratio of 19.34, 1PM is valued on the expensive side.
1PM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 60.00% of the companies in the same industry.
1PM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PM is on the same level as its industry peers.
1PM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.72 | ||
| EV/EBITDA | 18.14 |
4.3 Compensation for Growth
1PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1PM may justify a higher PE ratio.
A more expensive valuation may be justified as 1PM's earnings are expected to grow with 12.97% in the coming years.
PEG (NY)1.34
PEG (5Y)4.97
EPS Next 2Y14.43%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
1PM has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.41, 1PM is paying slightly less dividend.
1PM's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of 1PM has a limited annual growth rate of 2.76%.
Dividend Growth(5Y)2.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1PM pays out 101.82% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.82%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
BIT:1PM (7/31/2025, 7:00:00 PM)
142.38
+2.54 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners82.07%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap221.63B
Analysts80.77
Price Target163.75 (15.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend4.53
Dividend Growth(5Y)2.76%
DP101.82%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.19%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-0.19%
Max EPS beat(4)1.78%
EPS beat(8)5
Avg EPS beat(8)-0.35%
EPS beat(12)8
Avg EPS beat(12)1.72%
EPS beat(16)10
Avg EPS beat(16)2.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)5.83%
PT rev (3m)17.95%
EPS NQ rev (1m)3.6%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)4.11%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 19.34 | ||
| P/S | 6.61 | ||
| P/FCF | 28.72 | ||
| P/OCF | 24.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.14 |
EPS(TTM)6.06
EY4.26%
EPS(NY)7.36
Fwd EY5.17%
FCF(TTM)4.96
FCFY3.48%
OCF(TTM)5.74
OCFY4.03%
SpS21.54
BVpS-6.6
TBVpS-22.38
PEG (NY)1.34
PEG (5Y)4.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 26.29% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 111.1% | ||
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% | ||
| FCFM | 23.01% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.31% | ||
| Profit Quality | 109.54% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score6
WACC7.8%
ROIC/WACC3.37
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)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
EPS Next Y17.55%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
EPS Next 5Y11.07%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
Revenue Next Year9.12%
Revenue Next 2Y8.77%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
EBIT growth 1Y8.02%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.58%
EBIT Next 3Y14.17%
EBIT Next 5Y11.71%
FCF growth 1Y21.31%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y20.33%
OCF growth 3Y0.69%
OCF growth 5Y3.9%