PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
26.43 USD
-0.94 (-3.43%)
26.49 USD
+0.06 (+0.23%)
We assign a fundamental rating of 6 out of 10 to PFE. PFE was compared to 196 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PFE. Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PFE had positive earnings in the past year.
PFE had a positive operating cash flow in the past year.
PFE had positive earnings in each of the past 5 years.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.22%, PFE belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
PFE's Return On Equity of 12.12% is amongst the best of the industry. PFE outperforms 88.27% of its industry peers.
With an excellent Return On Invested Capital value of 8.54%, PFE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFE is below the industry average of 15.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 12.12% | ||
| ROIC | 8.54% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.29%
ROIC(5y)11.14%
1.3 Margins
With an excellent Profit Margin value of 16.84%, PFE belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
PFE has a better Operating Margin (28.52%) than 93.37% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 73.96%, PFE belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
In the last couple of years the Gross Margin of PFE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.52% | ||
| PM (TTM) | 16.84% | ||
| GM | 73.96% |
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 PFE is still creating some value.
PFE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PFE has been increased compared to 5 years ago.
PFE has a better debt/assets ratio than last year.
2.2 Solvency
PFE has an Altman-Z score of 2.23. This is not the best score and indicates that PFE is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.23, PFE is doing good in the industry, outperforming 67.35% of the companies in the same industry.
The Debt to FCF ratio of PFE is 4.97, which is a neutral value as it means it would take PFE, 4.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.97, PFE belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
PFE has a Debt/Equity ratio of 0.65. This is a neutral value indicating PFE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, PFE is not doing good in the industry: 66.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.04
WACC8.18%
2.3 Liquidity
PFE has a Current Ratio of 1.16. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, PFE is doing worse than 78.06% of the companies in the same industry.
PFE has a Quick Ratio of 1.16. This is a bad value and indicates that PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, PFE is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 151.11% over the past year.
Measured over the past 5 years, PFE shows a small growth in Earnings Per Share. The EPS has been growing by 1.06% on average per year.
PFE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.54%.
Measured over the past years, PFE shows a quite strong growth in Revenue. The Revenue has been growing by 9.10% on average per year.
EPS 1Y (TTM)151.11%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%30%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
3.2 Future
PFE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.74% yearly.
Based on estimates for the next years, PFE will show a decrease in Revenue. The Revenue will decrease by -2.93% on average per year.
EPS Next Y0.66%
EPS Next 2Y1.57%
EPS Next 3Y0.49%
EPS Next 5Y-4.74%
Revenue Next Year0.29%
Revenue Next 2Y-0.19%
Revenue Next 3Y-0.87%
Revenue Next 5Y-2.93%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.80, the valuation of PFE can be described as very cheap.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.90, PFE is valued rather cheaply.
PFE is valuated reasonably with a Price/Forward Earnings ratio of 8.24.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 92.35% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 88.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PFE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PFE may justify a higher PE ratio.
PEG (NY)11.83
PEG (5Y)7.34
EPS Next 2Y1.57%
EPS Next 3Y0.49%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.35%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 6.27. PFE pays more dividend than 97.96% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.30%.
PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
PFE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.3%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
PFE pays out 89.68% of its income as dividend. This is not a sustainable payout ratio.
PFE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP89.68%
EPS Next 2Y1.57%
EPS Next 3Y0.49%
26.43
-0.94 (-3.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change-0.03%
Ins Owners0.02%
Ins Owner Change0%
Market Cap150.27B
Analysts71.33
Price Target29.9 (13.13%)
Short Float %1.99%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend1.68
Dividend Growth(5Y)3.3%
DP89.68%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.18%
Min EPS beat(2)32.91%
Max EPS beat(2)37.45%
EPS beat(4)4
Avg EPS beat(4)43.14%
Min EPS beat(4)32.52%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)56.64%
EPS beat(12)12
Avg EPS beat(12)44.11%
EPS beat(16)16
Avg EPS beat(16)37.53%
Revenue beat(2)1
Avg Revenue beat(2)2.3%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)6.96%
Revenue beat(4)3
Avg Revenue beat(4)5.79%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)17.22%
Revenue beat(8)5
Avg Revenue beat(8)3.23%
Revenue beat(12)8
Avg Revenue beat(12)3.25%
Revenue beat(16)11
Avg Revenue beat(16)3.37%
PT rev (1m)0.62%
PT rev (3m)2.61%
EPS NQ rev (1m)2.09%
EPS NQ rev (3m)-16.28%
EPS NY rev (1m)0.4%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 8.24 | ||
| P/S | 2.35 | ||
| P/FCF | 12.08 | ||
| P/OCF | 9.9 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.7 |
EPS(TTM)3.39
EY12.83%
EPS(NY)3.21
Fwd EY12.14%
FCF(TTM)2.19
FCFY8.28%
OCF(TTM)2.67
OCFY10.11%
SpS11.23
BVpS15.6
TBVpS-5.8
PEG (NY)11.83
PEG (5Y)7.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 12.12% | ||
| ROCE | 10.81% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 42.97% | ||
| OM | 28.52% | ||
| PM (TTM) | 16.84% | ||
| GM | 73.96% | ||
| FCFM | 19.48% |
ROA(3y)6.87%
ROA(5y)7.73%
ROE(3y)14.76%
ROE(5y)17.45%
ROIC(3y)11.29%
ROIC(5y)11.14%
ROICexc(3y)12.95%
ROICexc(5y)13.16%
ROICexgc(3y)51.69%
ROICexgc(5y)47.96%
ROCE(3y)14.48%
ROCE(5y)14.24%
ROICexcg growth 3Y-10.89%
ROICexcg growth 5Y27.11%
ROICexc growth 3Y-24.53%
ROICexc growth 5Y9.97%
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%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 40.51% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 5.77 | ||
| Cash Conversion | 60.76% | ||
| Profit Quality | 115.66% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.23 |
F-Score7
WACC8.18%
ROIC/WACC1.04
Cap/Depr(3y)55.83%
Cap/Depr(5y)55.63%
Cap/Sales(3y)4.78%
Cap/Sales(5y)4.87%
Profit Quality(3y)143.88%
Profit Quality(5y)138.86%
High Growth Momentum
Growth
EPS 1Y (TTM)151.11%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%30%
EPS Next Y0.66%
EPS Next 2Y1.57%
EPS Next 3Y0.49%
EPS Next 5Y-4.74%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
Revenue Next Year0.29%
Revenue Next 2Y-0.19%
Revenue Next 3Y-0.87%
Revenue Next 5Y-2.93%
EBIT growth 1Y65.39%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year16.68%
EBIT Next 3Y5.82%
EBIT Next 5Y0.93%
FCF growth 1Y16.62%
FCF growth 3Y-30.95%
FCF growth 5Y-0.32%
OCF growth 1Y4.31%
OCF growth 3Y-26.87%
OCF growth 5Y0.25%