PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
23.97 USD
+0.1 (+0.42%)
23.9801 USD
+0.01 (+0.04%)
Taking everything into account, PFE scores 6 out of 10 in our fundamental rating. PFE was compared to 196 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are some minor concerns on its financial health. PFE may be a bit undervalued, certainly considering the very reasonable score on growth PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
In the past year PFE had a positive cash flow from operations.
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 88.27% of the companies in the same industry.
The Return On Equity of PFE (12.12%) is better than 88.27% of its industry peers.
PFE's Return On Invested Capital of 8.54% is amongst the best of the industry. PFE outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is below the industry average of 15.28%.
| 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
PFE has a better Profit Margin (16.84%) than 90.31% of its industry peers.
In the last couple of years the Profit Margin of PFE has declined.
With an excellent Operating Margin value of 28.52%, PFE belongs to the best of the industry, outperforming 93.37% of the companies in the same industry.
PFE's Operating Margin has improved in the last couple of years.
PFE has a Gross Margin of 73.96%. This is amongst the best in the industry. PFE outperforms 81.12% of its industry peers.
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
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.
PFE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PFE has been reduced compared to a year ago.
2.2 Solvency
PFE has an Altman-Z score of 2.13. 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 2.13, PFE is doing good in the industry, outperforming 67.35% of the companies in the same industry.
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 83.16% 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.
The Debt to Equity ratio of PFE (0.65) is worse than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.92
WACC9.31%
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.
The Current ratio of PFE (1.16) is worse than 77.55% of its industry peers.
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.
PFE has a Quick ratio of 0.85. This is in the lower half of the industry: PFE underperforms 79.08% 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.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
The Revenue has grown by 13.54% in the past year. This is quite good.
PFE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.10% yearly.
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 -4.48% yearly.
The Revenue is expected to decrease by -2.85% on average over the next years.
EPS Next Y0.26%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
EPS Next 5Y-4.48%
Revenue Next Year0.25%
Revenue Next 2Y-0.23%
Revenue Next 3Y-0.84%
Revenue Next 5Y-2.85%
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
With a Price/Earnings ratio of 7.07, the valuation of PFE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 94.39% of the companies listed in the same industry.
PFE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
PFE is valuated cheaply with a Price/Forward Earnings ratio of 7.58.
PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 92.35% of the companies in the same industry.
PFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 90.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.96 | ||
| EV/EBITDA | 6.91 |
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)27.17
PEG (5Y)6.66
EPS Next 2Y0.86%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.92%, which is a nice return.
PFE's Dividend Yield is rather good when compared to the industry average which is at 5.04. PFE pays more dividend than 98.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
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
89.68% 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.
DP89.68%
EPS Next 2Y0.86%
EPS Next 3Y0.2%
23.97
+0.1 (+0.42%)
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%
Market Cap136.28B
Analysts70.67
Price Target29.71 (23.95%)
Short Float %2%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
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)1.28%
PT rev (3m)1.96%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)-15.73%
EPS NY rev (1m)2.96%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 7.58 | ||
| P/S | 2.13 | ||
| P/FCF | 10.96 | ||
| P/OCF | 8.97 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)3.39
EY14.14%
EPS(NY)3.16
Fwd EY13.2%
FCF(TTM)2.19
FCFY9.13%
OCF(TTM)2.67
OCFY11.14%
SpS11.23
BVpS15.6
TBVpS-5.8
PEG (NY)27.17
PEG (5Y)6.66
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 | 2.13 |
F-Score7
WACC9.31%
ROIC/WACC0.92
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-4.48%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
Revenue Next Year0.25%
Revenue Next 2Y-0.23%
Revenue Next 3Y-0.84%
Revenue Next 5Y-2.85%
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%