PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PM - US7181721090 - Common Stock
148.14 EUR
+10.56 (+7.68%)
Taking everything into account, 1PM scores 4 out of 10 in our fundamental rating. 1PM was compared to 5 industry peers in the Tobacco industry. While 1PM is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1PM is valued expensive at the moment.
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.
- 1PM had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1PM had a positive operating cash flow.
1.2 Ratios
- 1PM has a Return On Assets of 12.83%. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
- With a decent Return On Invested Capital value of 28.03%, 1PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 1PM had an Average Return On Invested Capital over the past 3 years of 25.07%. This is above the industry average of 22.36%.
- The last Return On Invested Capital (28.03%) for 1PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | N/A | ||
| ROIC | 28.03% |
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 Profit Margin of 21.51%. This is in the better half of the industry: 1PM outperforms 80.00% of its industry peers.
- 1PM's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 38.71%, 1PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1PM has remained more or less at the same level.
- With a decent Gross Margin value of 66.93%, 1PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 1PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.71% | ||
| PM (TTM) | 21.51% | ||
| GM | 66.93% |
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.
- 1PM has about the same amout of shares outstanding than it did 1 year ago.
- 1PM has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1PM is higher compared to a year ago.
2.2 Solvency
- 1PM has a debt to FCF ratio of 4.95. This is a neutral value as 1PM would need 4.95 years to pay back of all of its debts.
- The Debt to FCF ratio of 1PM (4.95) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.24
WACC8.65%
2.3 Liquidity
- 1PM has a Current Ratio of 0.85. This is a bad value and indicates that 1PM is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1PM has a better Current ratio (0.85) than 80.00% of its industry peers.
- A Quick Ratio of 0.85 indicates that 1PM may have some problems paying its short term obligations.
- The Quick ratio of 1PM (0.85) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- 1PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.19%, 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.
- The Revenue has been growing slightly by 7.45% in the past year.
- 1PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
EPS 1Y (TTM)16.19%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%17.28%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
3.2 Future
- The Earnings Per Share is expected to grow by 11.60% on average over the next years. This is quite good.
- Based on estimates for the next years, 1PM will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
Revenue Next 5Y7.66%
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.
- 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 24.01 indicates a rather expensive valuation of 1PM.
- 1PM's Price/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.
- When comparing the Price/Earnings ratio of 1PM to the average of the S&P500 Index (28.39), we can say 1PM is valued inline with the index average.
- 1PM is valuated rather expensively with a Price/Forward Earnings ratio of 20.64.
- Compared to the rest of the industry, the Price/Forward 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.
- 1PM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1PM.
- 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 | 27.28 | ||
| EV/EBITDA | 18.37 |
4.3 Compensation for Growth
- The 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 12.73% in the coming years.
PEG (NY)1.31
PEG (5Y)5.08
EPS Next 2Y14.56%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.70%, 1PM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.00, 1PM is paying slightly less dividend.
- 1PM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
- 98.07% of the earnings are spent on dividend by 1PM. This is not a sustainable payout ratio.
- The dividend of 1PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.07%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
PHILIP MORRIS INTERNATIONAL / 1PM.MI FAQ
Can you provide the ChartMill fundamental rating for PHILIP MORRIS INTERNATIONAL?
ChartMill assigns a fundamental rating of 4 / 10 to 1PM.MI.
What is the valuation status for 1PM stock?
ChartMill assigns a valuation rating of 2 / 10 to PHILIP MORRIS INTERNATIONAL (1PM.MI). This can be considered as Overvalued.
What is the profitability of 1PM stock?
PHILIP MORRIS INTERNATIONAL (1PM.MI) has a profitability rating of 6 / 10.
What is the valuation of PHILIP MORRIS INTERNATIONAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PHILIP MORRIS INTERNATIONAL (1PM.MI) is 24.01 and the Price/Book (PB) ratio is -25.3.
Can you provide the dividend sustainability for 1PM stock?
The dividend rating of PHILIP MORRIS INTERNATIONAL (1PM.MI) is 4 / 10 and the dividend payout ratio is 98.07%.