PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock - Currency: USD
Overall PFE gets a fundamental rating of 6 out of 10. We evaluated PFE against 198 industry peers in the Pharmaceuticals industry. PFE scores excellent on profitability, but 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
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
PFE has a Return On Assets of 3.79%. This is amongst the best in the industry. PFE outperforms 86.36% of its industry peers.
PFE has a better Return On Equity (8.73%) than 86.87% of its industry peers.
With an excellent Return On Invested Capital value of 7.77%, PFE belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PFE is significantly below the industry average of 41.51%.
| 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
PFE's Profit Margin of 12.62% is amongst the best of the industry. PFE outperforms 88.38% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.12%, PFE belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
In the last couple of years the Operating Margin of PFE has grown nicely.
With an excellent Gross Margin value of 74.57%, PFE belongs to the best of the industry, outperforming 80.30% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PFE is 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
An Altman-Z score of 2.09 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.09, PFE is doing good in the industry, outperforming 68.69% of the companies in the same industry.
PFE has a debt to FCF ratio of 5.54. This is a neutral value as PFE would need 5.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.54, PFE belongs to the top of the industry, outperforming 82.83% of the companies in the same industry.
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 64.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.84
WACC9.22%
2.3 Liquidity
PFE has a Current Ratio of 1.26. 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 1.26, PFE is doing worse than 79.80% of the companies in the same industry.
PFE has a Quick Ratio of 1.26. This is a bad value and indicates that PFE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PFE (0.96) is worse than 79.80% 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.
PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
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
The Earnings Per Share is expected to decrease by -2.82% on average over the next years.
PFE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.89% yearly.
EPS Next Y-3.97%
EPS Next 2Y-0.74%
EPS Next 3Y-0.97%
EPS Next 5Y-2.82%
Revenue Next Year-1.13%
Revenue Next 2Y-0.71%
Revenue Next 3Y-1.29%
Revenue Next 5Y-1.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 6.86, which indicates a rather cheap valuation of PFE.
Based on the Price/Earnings ratio, PFE is valued cheaper than 92.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.85. PFE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.19, the valuation of PFE can be described as very cheap.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 91.41% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.89. PFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaper than 89.90% of the companies in the same industry.
PFE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PFE is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
The decent profitability rating of PFE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.46
EPS Next 2Y-0.74%
EPS Next 3Y-0.97%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 7.49%, which is a nice return.
Compared to an average industry Dividend Yield of 4.19, PFE pays a better dividend. On top of this PFE pays more dividend than 98.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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
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 2Y-0.74%
EPS Next 3Y-0.97%
22.02
-0.85 (-3.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change-1.15%
Ins Owners0.02%
Ins Owner Change1.53%
Market Cap124.89B
Analysts70
Price Target29.43 (33.65%)
Short Float %2.03%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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)31.76%
Min EPS beat(2)31.01%
Max EPS beat(2)32.52%
EPS beat(4)4
Avg EPS beat(4)40.87%
Min EPS beat(4)30.28%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)53.83%
EPS beat(12)12
Avg EPS beat(12)41.94%
EPS beat(16)16
Avg EPS beat(16)35.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)3.82%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)17.22%
Revenue beat(8)4
Avg Revenue beat(8)1.44%
Revenue beat(12)8
Avg Revenue beat(12)3.03%
Revenue beat(16)10
Avg Revenue beat(16)2.78%
PT rev (1m)-6.52%
PT rev (3m)-8.38%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 7.19 | ||
| P/S | 2 | ||
| P/FCF | 11.13 | ||
| P/OCF | 8.93 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)3.21
EY14.58%
EPS(NY)3.06
Fwd EY13.92%
FCF(TTM)1.98
FCFY8.98%
OCF(TTM)2.47
OCFY11.2%
SpS11.01
BVpS15.93
TBVpS-5.66
PEG (NY)N/A
PEG (5Y)6.46
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 | 2.09 |
F-Score8
WACC9.22%
ROIC/WACC0.84
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-3.97%
EPS Next 2Y-0.74%
EPS Next 3Y-0.97%
EPS Next 5Y-2.82%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-7.82%
Revenue Next Year-1.13%
Revenue Next 2Y-0.71%
Revenue Next 3Y-1.29%
Revenue Next 5Y-1.89%
EBIT growth 1Y56.33%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year23.03%
EBIT Next 3Y6.03%
EBIT Next 5Y4.91%
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%