PHILIP MORRIS INTERNATIONAL (1PM.MI) Stock Fundamental Analysis
BIT:1PM - Euronext Milan - US7181721090 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1PM. 1PM was compared to 5 industry peers in the Tobacco industry. Both the profitability and the financial health of 1PM get a neutral evaluation. Nothing too spectacular is happening here. 1PM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1PM was profitable.
1PM had a positive operating cash flow in the past year.
Each year in the past 5 years 1PM has been profitable.
1PM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PM has a better Return On Assets (11.64%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.67%, 1PM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1PM is above the industry average of 21.32%.
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
1PM has a better Profit Margin (19.73%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of 1PM has declined.
Looking at the Operating Margin, with a value of 36.24%, 1PM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
1PM's Operating Margin has been stable in the last couple of years.
1PM's Gross Margin of 65.68% is fine compared to the rest 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 | 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.
The number of shares outstanding for 1PM remains at a similar level compared to 5 years ago.
The debt/assets ratio for 1PM is higher compared to a year ago.
2.2 Solvency
1PM has an Altman-Z score of 4.00. This indicates that 1PM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1PM (4.00) is comparable to the rest of the industry.
The Debt to FCF ratio of 1PM is 4.86, which is a neutral value as it means it would take 1PM, 4.86 years of fcf income to pay off all of its debts.
1PM has a Debt to FCF ratio of 4.86. This is in the lower half of the industry: 1PM underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4 |
ROIC/WACC3.2
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.79 indicates that 1PM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, 1PM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that 1PM may have some problems paying its short term obligations.
The Quick ratio of 1PM (0.43) is better than 80.00% 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.
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 6.78%.
1PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
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
The Earnings Per Share is expected to grow by 10.38% 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 7.64% on average per year.
EPS Next Y13.8%
EPS Next 2Y12.12%
EPS Next 3Y11.39%
EPS Next 5Y10.38%
Revenue Next Year7.6%
Revenue Next 2Y7.89%
Revenue Next 3Y7.52%
Revenue Next 5Y7.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.76, which means the current valuation is very expensive for 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.
When comparing the Price/Earnings ratio of 1PM to the average of the S&P500 Index (24.29), we can say 1PM is valued inline with the index average.
1PM is valuated rather expensively with a Price/Forward Earnings ratio of 21.08.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than 1PM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1PM is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.5 | ||
| EV/EBITDA | 19.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1PM may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)5.45
EPS Next 2Y12.12%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
1PM has a Yearly Dividend Yield of 3.18%.
With a Dividend Yield of 3.18, 1PM pays less dividend than the industry average, which is at 5.24. 80.00% 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 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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 2Y12.12%
EPS Next 3Y11.39%
BIT:1PM (5/6/2025, 7:00:00 PM)
153.04
+10.04 (+7.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap238.21B
Analysts81.67
Price Target138.83 (-9.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend4.65
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)-3.35%
PT rev (3m)5.18%
EPS NQ rev (1m)4.63%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)1.4%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)4.04%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.08 | ||
| P/S | 7.04 | ||
| P/FCF | 26.5 | ||
| P/OCF | 23.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.34 |
EPS(TTM)5.94
EY3.88%
EPS(NY)7.26
Fwd EY4.74%
FCF(TTM)5.77
FCFY3.77%
OCF(TTM)6.58
OCFY4.3%
SpS21.74
BVpS-6.17
TBVpS-22.15
PEG (NY)1.87
PEG (5Y)5.45
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 |
F-Score6
WACC8.03%
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 Y13.8%
EPS Next 2Y12.12%
EPS Next 3Y11.39%
EPS Next 5Y10.38%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
Revenue Next Year7.6%
Revenue Next 2Y7.89%
Revenue Next 3Y7.52%
Revenue Next 5Y7.64%
EBIT growth 1Y1.8%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year19.22%
EBIT Next 3Y11.82%
EBIT Next 5Y10.29%
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%