PFIZER INC (PFE)
US7170811035 - Common Stock
PFE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 196 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but there are some minor concerns on its financial health. PFE has a bad growth rate and is valued cheaply. 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.
Each year in the past 5 years PFE has been profitable.
Each year in the past 5 years PFE had a positive operating cash flow.
1.2 Ratios
PFE has a Return On Assets of -0.14%. This is amongst the best in the industry. PFE outperforms 81.44% of its industry peers.
With an excellent Return On Equity value of -0.33%, PFE belongs to the best of the industry, outperforming 81.96% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.12%, PFE belongs to the best of the industry, outperforming 84.02% of the companies in the same industry.
PFE had an Average Return On Invested Capital over the past 3 years of 15.85%. This is below the industry average of 17.97%.
The 3 year average ROIC (15.85%) for PFE is well above the current ROIC(5.12%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.33% | ||
| ROIC | 5.12% |
ROA(3y)9.65%
ROA(5y)8.98%
ROE(3y)21.22%
ROE(5y)20.92%
ROIC(3y)15.85%
ROIC(5y)12.33%
1.3 Margins
In the last couple of years the Profit Margin of PFE has declined.
Looking at the Operating Margin, with a value of 19.32%, PFE belongs to the top of the industry, outperforming 87.11% of the companies in the same industry.
PFE's Operating Margin has been stable in the last couple of years.
PFE has a better Gross Margin (70.45%) than 76.29% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.32% | ||
| PM (TTM) | N/A | ||
| GM | 70.45% |
OM growth 3Y-7.14%
OM growth 5Y0.91%
PM growth 3Y-45.95%
PM growth 5Y-33.24%
GM growth 3Y-4.36%
GM growth 5Y-2.32%
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.
Compared to 5 years ago, PFE has less shares outstanding
Compared to 1 year ago, PFE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE has a Altman-Z score of 1.98. This is in the better half of the industry: PFE outperforms 67.01% of its industry peers.
The Debt to FCF ratio of PFE is 13.62, which is on the high side as it means it would take PFE, 13.62 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 13.62, PFE belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
PFE has a Debt/Equity ratio of 0.74. This is a neutral value indicating PFE is somewhat dependend on debt financing.
PFE has a worse Debt to Equity ratio (0.74) than 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 13.62 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.57
WACC8.94%
2.3 Liquidity
PFE has a Current Ratio of 1.05. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
PFE's Current ratio of 1.05 is on the low side compared to the rest of the industry. PFE is outperformed by 87.11% of its industry peers.
A Quick Ratio of 0.78 indicates that PFE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, PFE is doing worse than 86.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for PFE have decreased strongly by -77.06% in the last year.
Measured over the past years, PFE shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.41% on average per year.
The Revenue for PFE has decreased by -40.73% in the past year. This is quite bad
Measured over the past years, PFE shows a small growth in Revenue. The Revenue has been growing by 7.46% on average per year.
EPS 1Y (TTM)-77.06%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-40.73%
Revenue growth 3Y11.76%
Revenue growth 5Y7.46%
Sales Q2Q%-18.61%
3.2 Future
Based on estimates for the next years, PFE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
The Revenue is expected to grow by 1.19% on average over the next years.
EPS Next Y29.61%
EPS Next 2Y22.74%
EPS Next 3Y16.96%
EPS Next 5Y9.48%
Revenue Next Year3.14%
Revenue Next 2Y3.37%
Revenue Next 3Y2.5%
Revenue Next 5Y1.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.67, which indicates a rather expensive current valuation of PFE.
Based on the Price/Earnings ratio, PFE is valued cheaper than 84.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. PFE is around the same levels.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of PFE can be described as reasonable.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 89.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.59. PFE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 84.02% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a somewhat cheap valuation: PFE is cheaper than 79.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PFE may justify a higher PE ratio.
A more expensive valuation may be justified as PFE's earnings are expected to grow with 16.96% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y22.74%
EPS Next 3Y16.96%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 5.65%, which is a nice return.
Compared to an average industry Dividend Yield of 3.97, PFE pays a better dividend. On top of this PFE pays more dividend than 97.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.78%.
PFE has paid a dividend for at least 10 years, which is a reliable track record.
PFE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.78%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
The earnings of PFE are negative and hence is the payout ratio. PFE will probably not be able to sustain this dividend level.
The dividend of PFE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-3014.89%
EPS Next 2Y22.74%
EPS Next 3Y16.96%
PFIZER INC
NYSE:PFE (7/26/2024, 7:04:00 PM)
After market: 30.68 -0.09 (-0.29%)30.77
+0.59 (+1.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap174.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 11.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.32% | ||
| PM (TTM) | N/A | ||
| GM | 70.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-77.06%
EPS 3Y-12.38%
EPS 5Y
EPS Q2Q%
EPS Next Y29.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-40.73%
Revenue growth 3Y11.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y