PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - US7170811035 - Common Stock
25.88 USD
+0.14 (+0.54%)
25.88 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PFE. PFE was compared to 193 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but there are some minor concerns on its financial health. PFE may be a bit undervalued, certainly considering the very reasonable score on growth Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
PFE had a positive operating cash flow in the past year.
In the past 5 years PFE has always been profitable.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
PFE has a better Return On Assets (5.22%) than 88.08% of its industry peers.
With an excellent Return On Equity value of 12.12%, PFE belongs to the best of the industry, outperforming 88.08% of the companies in the same industry.
PFE has a Return On Invested Capital of 8.54%. This is amongst the best in the industry. PFE outperforms 85.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is below the industry average of 15.38%.
| 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 90.16% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 28.52%, PFE belongs to the best of the industry, outperforming 93.26% of the companies in the same industry.
In the last couple of years the Operating Margin of PFE has grown nicely.
The Gross Margin of PFE (73.96%) is better than 81.87% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| 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
PFE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PFE has been increased compared to 1 year ago.
Compared to 5 years ago, PFE has more shares outstanding
PFE has a better debt/assets ratio than last year.
2.2 Solvency
PFE has an Altman-Z score of 2.19. 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.
PFE's Altman-Z score of 2.19 is fine compared to the rest of the industry. PFE outperforms 66.32% of its industry peers.
PFE has a debt to FCF ratio of 4.97. This is a neutral value as PFE would need 4.97 years to pay back of all of its debts.
PFE has a Debt to FCF ratio of 4.97. This is amongst the best in the industry. PFE outperforms 82.38% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that PFE is somewhat dependend on debt financing.
PFE has a worse Debt to Equity ratio (0.65) than 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.91
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PFE should not have too much problems paying its short term obligations.
The Current ratio of PFE (1.16) is worse than 77.72% of its industry peers.
A Quick Ratio of 0.85 indicates that PFE may have some problems paying its short term obligations.
PFE has a Quick ratio of 0.85. This is in the lower half of the industry: PFE underperforms 78.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.11%, which is quite impressive.
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.
The Revenue has grown by 13.54% in the past year. This is quite good.
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 -4.45% yearly.
PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.88% yearly.
EPS Next Y0.26%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
EPS Next 5Y-4.45%
Revenue Next Year0.29%
Revenue Next 2Y-0.22%
Revenue Next 3Y-0.8%
Revenue Next 5Y-2.88%
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
A Price/Earnings ratio of 7.63 indicates a rather cheap valuation of PFE.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 93.78% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. PFE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.18 indicates a reasonable valuation of PFE.
PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 89.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (22.81), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 8.18 |
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 92.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaply inside the industry as 89.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)29.34
PEG (5Y)7.19
EPS Next 2Y0.86%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.68%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 3.83. PFE pays more dividend than 98.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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 2Y0.86%
EPS Next 3Y0.2%
25.88
+0.14 (+0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.51%
Inst Owner Change-0.94%
Ins Owners0.02%
Ins Owner Change0.88%
Market Cap147.14B
Analysts70
Price Target29.72 (14.84%)
Short Float %1.9%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)1.3%
PT rev (3m)0.98%
EPS NQ rev (1m)-17.25%
EPS NQ rev (3m)-23.17%
EPS NY rev (1m)2.96%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 8.18 | ||
| P/S | 2.31 | ||
| P/FCF | 11.83 | ||
| P/OCF | 9.69 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.36 |
EPS(TTM)3.39
EY13.1%
EPS(NY)3.16
Fwd EY12.22%
FCF(TTM)2.19
FCFY8.45%
OCF(TTM)2.67
OCFY10.32%
SpS11.23
BVpS15.6
TBVpS-5.8
PEG (NY)29.34
PEG (5Y)7.19
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 | 2.19 |
F-Score7
WACC9.39%
ROIC/WACC0.91
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 Y0.26%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
EPS Next 5Y-4.45%
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-0.22%
Revenue Next 3Y-0.8%
Revenue Next 5Y-2.88%
EBIT growth 1Y65.39%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year23.41%
EBIT Next 3Y6.93%
EBIT Next 5Y3.57%
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%