PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
BIT:1PM - Euronext Milan - US7181721090 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1PM. 1PM was compared to 4 industry peers in the Tobacco industry. 1PM scores excellent on profitability, but 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
1PM had positive earnings in the past year.
In the past year 1PM had a positive cash flow from operations.
Each year in the past 5 years 1PM has been profitable.
Each year in the past 5 years 1PM had a positive operating cash flow.
1.2 Ratios
1PM's Return On Assets of 11.64% is fine compared to the rest of the industry. 1PM outperforms 66.67% of its industry peers.
1PM's Return On Invested Capital of 25.67% is fine compared to the rest of the industry. 1PM outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PM is above the industry average of 20.78%.
The last Return On Invested Capital (25.67%) for 1PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROIC | 25.67% |
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
The Profit Margin of 1PM (19.73%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of 1PM has declined.
With a decent Operating Margin value of 36.24%, 1PM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
1PM's Operating Margin has been stable in the last couple of years.
1PM has a Gross Margin of 65.68%. This is amongst the best in the industry. 1PM outperforms 83.33% 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 | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PM is creating value.
1PM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1PM has about the same amount of shares outstanding.
Compared to 1 year ago, 1PM has a worse debt to assets ratio.
2.2 Solvency
1PM has an Altman-Z score of 4.10. This indicates that 1PM is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.10, 1PM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1PM has a debt to FCF ratio of 4.86. This is a neutral value as 1PM would need 4.86 years to pay back of all of its debts.
1PM's Debt to FCF ratio of 4.86 is on the low side compared to the rest of the industry. 1PM is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.1 |
ROIC/WACC3.2
WACC8.01%
2.3 Liquidity
1PM has a Current Ratio of 0.79. 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's Current ratio of 0.79 is amongst the best of the industry. 1PM outperforms 100.00% of its industry peers.
1PM has a Quick Ratio of 0.79. 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 Quick ratio of 0.43. This is comparable to the rest of the industry: 1PM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.95% over the past year.
The Earnings Per Share has been growing slightly by 4.72% on average over the past years.
The Revenue has been growing slightly by 6.78% in the past year.
The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
3.2 Future
1PM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.07% yearly.
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 Year9.41%
Revenue Next 2Y8.93%
Revenue Next 3Y8.17%
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
With a Price/Earnings ratio of 26.44, 1PM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1PM indicates a slightly more expensive valuation: 1PM is more expensive than 66.67% of the companies listed in the same industry.
1PM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.79 indicates a rather expensive valuation of 1PM.
66.67% of the companies in the same industry are cheaper than 1PM, based on the Price/Forward Earnings ratio.
1PM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PM indicates a slightly more expensive valuation: 1PM is more expensive than 66.67% of the companies listed in the same industry.
1PM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1PM is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.22 | ||
| EV/EBITDA | 20.13 |
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 12.97% in the coming years.
PEG (NY)1.51
PEG (5Y)5.6
EPS Next 2Y14.43%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
1PM has a Yearly Dividend Yield of 3.01%.
With a Dividend Yield of 3.01, 1PM pays less dividend than the industry average, which is at 5.71. 83.33% of the companies listed in the same industry pay a better dividend than 1PM!
1PM's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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
109.27% of the earnings are spent on dividend by 1PM. This is not a sustainable payout ratio.
1PM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP109.27%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
BIT:1PM (7/11/2025, 7:00:00 PM)
153.06
+1.48 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners81.41%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap238.24B
Analysts80
Price Target161.58 (5.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend4.53
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.08%
Min EPS beat(2)0.44%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.59%
Min EPS beat(4)-1.59%
Max EPS beat(4)1.78%
EPS beat(8)6
Avg EPS beat(8)0.36%
EPS beat(12)9
Avg EPS beat(12)2.9%
EPS beat(16)10
Avg EPS beat(16)2.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)1.23%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)4.43%
PT rev (3m)17.02%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)0.03%
EPS NY rev (3m)4.93%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 20.79 | ||
| P/S | 7.23 | ||
| P/FCF | 27.22 | ||
| P/OCF | 23.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.13 |
EPS(TTM)5.79
EY3.78%
EPS(NY)7.36
Fwd EY4.81%
FCF(TTM)5.62
FCFY3.67%
OCF(TTM)6.41
OCFY4.19%
SpS21.17
BVpS-6.01
TBVpS-21.57
PEG (NY)1.51
PEG (5Y)5.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROCE | 37.61% | ||
| ROIC | 25.67% | ||
| ROICexc | 28.75% | ||
| ROICexgc | 121.16% | ||
| OM | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% | ||
| FCFM | 26.56% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 75.32% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 134.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.1 |
F-Score6
WACC8.01%
ROIC/WACC3.2
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)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
EPS Next Y17.55%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
EPS Next 5Y11.07%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
Revenue Next Year9.41%
Revenue Next 2Y8.93%
Revenue Next 3Y8.17%
Revenue Next 5Y9%
EBIT growth 1Y1.8%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.13%
EBIT Next 3Y13.89%
EBIT Next 5Y11.71%
FCF growth 1Y34.09%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y33.17%
OCF growth 3Y0.69%
OCF growth 5Y3.9%