PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock - Currency: USD
Taking everything into account, PFE scores 6 out of 10 in our fundamental rating. PFE was compared to 195 industry peers in the Pharmaceuticals industry. While PFE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PFE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Each year in the past 5 years PFE has been profitable.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
PFE has a Return On Assets of 3.79%. This is amongst the best in the industry. PFE outperforms 86.15% of its industry peers.
Looking at the Return On Equity, with a value of 8.73%, PFE belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
PFE has a better Return On Invested Capital (7.77%) than 85.13% of its industry peers.
PFE had an Average Return On Invested Capital over the past 3 years of 11.29%. This is below the industry average of 14.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.73% | ||
| ROIC | 7.77% |
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 12.62%, PFE belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
PFE's Operating Margin of 27.12% is amongst the best of the industry. PFE outperforms 93.85% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
The Gross Margin of PFE (74.57%) is better than 83.08% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.12% | ||
| PM (TTM) | 12.62% | ||
| GM | 74.57% |
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.
Compared to 1 year ago, PFE has more shares outstanding
Compared to 5 years ago, PFE has more shares outstanding
The debt/assets ratio for PFE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.15 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.15, PFE is in the better half of the industry, outperforming 68.72% of the companies in the same industry.
The Debt to FCF ratio of PFE is 5.54, which is a neutral value as it means it would take PFE, 5.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PFE (5.54) is better than 82.56% of its industry peers.
PFE has a Debt/Equity ratio of 0.65. This is a neutral value indicating PFE is somewhat dependend on debt financing.
PFE has a worse Debt to Equity ratio (0.65) than 65.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.83
WACC9.41%
2.3 Liquidity
A Current Ratio of 1.26 indicates that PFE should not have too much problems paying its short term obligations.
PFE has a worse Current ratio (1.26) than 76.92% of its industry peers.
A Quick Ratio of 0.96 indicates that PFE may have some problems paying its short term obligations.
The Quick ratio of PFE (0.96) is worse than 77.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
PFE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.06%, 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 11.65% 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)126.06%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%12.2%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-7.82%
3.2 Future
Based on estimates for the next years, PFE will show a decrease in Earnings Per Share. The EPS will decrease by -3.69% on average per year.
The Revenue is expected to decrease by -2.58% on average over the next years.
EPS Next Y-1.51%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
EPS Next 5Y-3.69%
Revenue Next Year-1.01%
Revenue Next 2Y-0.68%
Revenue Next 3Y-1.24%
Revenue Next 5Y-2.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.64, which indicates a rather cheap valuation of PFE.
93.33% of the companies in the same industry are more expensive than PFE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, PFE is valued rather cheaply.
The Price/Forward Earnings ratio is 7.78, which indicates a rather cheap valuation of PFE.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (22.13), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The decent profitability rating of PFE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.2
EPS Next 2Y0.72%
EPS Next 3Y0.36%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 7.44%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 4.16. PFE pays more dividend than 98.46% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.3%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
121.49% of the earnings are spent on dividend by PFE. This is not a sustainable payout ratio.
The Dividend Rate of PFE has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP121.49%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
24.54
-0.3 (-1.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change-0.22%
Ins Owners0.02%
Ins Owner Change1.53%
Market Cap139.52B
Analysts70
Price Target29.14 (18.74%)
Short Float %1.89%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
Yearly Dividend1.68
Dividend Growth(5Y)3.3%
DP121.49%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.98%
Min EPS beat(2)32.52%
Max EPS beat(2)37.45%
EPS beat(4)4
Avg EPS beat(4)42.48%
Min EPS beat(4)30.28%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)54.64%
EPS beat(12)12
Avg EPS beat(12)42.48%
EPS beat(16)16
Avg EPS beat(16)36.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)4.42%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)17.22%
Revenue beat(8)4
Avg Revenue beat(8)1.74%
Revenue beat(12)8
Avg Revenue beat(12)3.23%
Revenue beat(16)10
Avg Revenue beat(16)2.93%
PT rev (1m)-0.98%
PT rev (3m)-6.7%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)2.57%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 7.78 | ||
| P/S | 2.23 | ||
| P/FCF | 12.43 | ||
| P/OCF | 9.97 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)3.21
EY13.08%
EPS(NY)3.15
Fwd EY12.86%
FCF(TTM)1.97
FCFY8.04%
OCF(TTM)2.46
OCFY10.03%
SpS10.99
BVpS15.89
TBVpS-5.64
PEG (NY)N/A
PEG (5Y)7.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.73% | ||
| ROCE | 9.87% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.64% | ||
| ROICexgc | 41.11% | ||
| OM | 27.12% | ||
| PM (TTM) | 12.62% | ||
| GM | 74.57% | ||
| FCFM | 17.96% |
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-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 40.16% | ||
| Cap/Sales | 4.43% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 58.69% | ||
| Profit Quality | 142.33% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.15 |
F-Score8
WACC9.41%
ROIC/WACC0.83
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)126.06%
EPS 3Y-11.06%
EPS 5Y1.06%
EPS Q2Q%12.2%
EPS Next Y-1.51%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
EPS Next 5Y-3.69%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-7.82%
Revenue Next Year-1.01%
Revenue Next 2Y-0.68%
Revenue Next 3Y-1.24%
Revenue Next 5Y-2.58%
EBIT growth 1Y56.33%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year21.61%
EBIT Next 3Y6.42%
EBIT Next 5Y3.52%
FCF growth 1Y-44.47%
FCF growth 3Y-30.95%
FCF growth 5Y-0.32%
OCF growth 1Y-41.56%
OCF growth 3Y-26.87%
OCF growth 5Y0.25%