PFIZER INC (PFE)
US7170811035 - Common Stock
We assign a fundamental rating of 6 out of 10 to PFE. 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 is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years PFE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.94%, PFE belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
PFE's Return On Equity of 4.61% is amongst the best of the industry. PFE outperforms 86.02% of its industry peers.
PFE has a Return On Invested Capital of 6.52%. This is amongst the best in the industry. PFE outperforms 84.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is significantly below the industry average of 43.99%.
The 3 year average ROIC (15.85%) for PFE is well above the current ROIC(6.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROIC | 6.52% |
ROA(3y)9.65%
ROA(5y)8.92%
ROE(3y)21.22%
ROE(5y)20.78%
ROIC(3y)15.85%
ROIC(5y)12.08%
1.3 Margins
Looking at the Profit Margin, with a value of 7.07%, PFE belongs to the top of the industry, outperforming 86.02% of the companies in the same industry.
PFE's Profit Margin has declined in the last couple of years.
PFE has a Operating Margin of 21.87%. This is amongst the best in the industry. PFE outperforms 87.10% of its industry peers.
In the last couple of years the Operating Margin of PFE has grown nicely.
Looking at the Gross Margin, with a value of 70.82%, PFE is in the better half of the industry, outperforming 76.34% of the companies in the same industry.
PFE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.87% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% |
OM growth 3Y-2.8%
OM growth 5Y1.5%
PM growth 3Y-45.18%
PM growth 5Y-33.24%
GM growth 3Y-4.47%
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.
Compared to 1 year ago, PFE has more shares outstanding
The number of shares outstanding for PFE has been reduced compared to 5 years ago.
The debt/assets ratio for PFE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE's Altman-Z score of 1.96 is fine compared to the rest of the industry. PFE outperforms 68.28% of its industry peers.
The Debt to FCF ratio of PFE is 8.23, which is on the high side as it means it would take PFE, 8.23 years of fcf income to pay off all of its debts.
PFE has a better Debt to FCF ratio (8.23) than 83.87% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that PFE is somewhat dependend on debt financing.
PFE has a worse Debt to Equity ratio (0.69) than 68.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.63
WACC10.31%
2.3 Liquidity
PFE has a Current Ratio of 1.00. This is a normal value and indicates that PFE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, PFE is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that PFE may have some problems paying its short term obligations.
The Quick ratio of PFE (0.73) is worse than 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for PFE have decreased strongly by -10.10% in the last year.
The Earnings Per Share has been decreasing by -9.41% on average over the past years.
The Revenue for PFE has decreased by -12.90% 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)-10.1%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS Q2Q%723.53%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y7.46%
Sales Q2Q%33.78%
3.2 Future
PFE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
The Revenue is expected to grow by 0.54% on average over the next years.
EPS Next Y61.41%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
EPS Next 5Y9.51%
Revenue Next Year7.12%
Revenue Next 2Y3.64%
Revenue Next 3Y2.55%
Revenue Next 5Y0.54%
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
A Price/Earnings ratio of 10.38 indicates a reasonable valuation of PFE.
91.94% of the companies in the same industry are more expensive than PFE, based on the Price/Earnings ratio.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
PFE is valuated reasonably with a Price/Forward Earnings ratio of 9.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 89.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PFE to the average of the S&P500 Index (23.26), we can say PFE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
86.02% of the companies in the same industry are more expensive than PFE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 86.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 9.7 |
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 excellent profitability rating of PFE may justify a higher PE ratio.
PFE's earnings are expected to grow with 18.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y26.37%
EPS Next 3Y18.74%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 6.40%, which is a nice return.
Compared to an average industry Dividend Yield of 4.08, PFE pays a better dividend. On top of this PFE pays more dividend than 98.39% of the companies listed 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 | 6.4% |
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 Years14
Div Non Decr Years14
5.3 Sustainability
PFE pays out 222.18% of its income as dividend. This is not a sustainable payout ratio.
PFE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP222.18%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
PFIZER INC
NYSE:PFE (1/13/2025, 3:07:10 PM)
26.7767
+0.06 (+0.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.53%
Inst Owner Change-0.1%
Ins Owners0.02%
Ins Owner Change-0.45%
Market Cap151.74B
Analysts72
Price Target32.22 (20.33%)
Short Float %1.51%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
Dividend Growth(5Y)3.78%
DP222.18%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.99%
Min EPS beat(2)30.28%
Max EPS beat(2)69.69%
EPS beat(4)4
Avg EPS beat(4)75.1%
Min EPS beat(4)30.28%
Max EPS beat(4)145.39%
EPS beat(8)8
Avg EPS beat(8)49.93%
EPS beat(12)12
Avg EPS beat(12)39.63%
EPS beat(16)15
Avg EPS beat(16)32%
Revenue beat(2)2
Avg Revenue beat(2)9.37%
Min Revenue beat(2)1.51%
Max Revenue beat(2)17.22%
Revenue beat(4)3
Avg Revenue beat(4)5.44%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)17.22%
Revenue beat(8)4
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)3.32%
Revenue beat(16)9
Avg Revenue beat(16)3.11%
PT rev (1m)-2.52%
PT rev (3m)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.43%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 9.16 | ||
| P/S | 2.52 | ||
| P/FCF | 18.45 | ||
| P/OCF | 13.47 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.7 |
EPS(TTM)2.58
EY9.64%
EPS(NY)2.92
Fwd EY10.91%
FCF(TTM)1.45
FCFY5.42%
OCF(TTM)1.99
OCFY7.42%
SpS10.61
BVpS16.28
TBVpS-6.4
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.61% | ||
| ROCE | 7.46% | ||
| ROIC | 6.52% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 27.19% | ||
| OM | 21.87% | ||
| PM (TTM) | 7.07% | ||
| GM | 70.82% | ||
| FCFM | 13.68% |
ROA(3y)9.65%
ROA(5y)8.92%
ROE(3y)21.22%
ROE(5y)20.78%
ROIC(3y)15.85%
ROIC(5y)12.08%
ROICexc(3y)19.05%
ROICexc(5y)14.23%
ROICexgc(3y)65.81%
ROICexgc(5y)47.35%
ROCE(3y)17.69%
ROCE(5y)13.61%
ROICexcg growth 3Y6.45%
ROICexcg growth 5Y-2.08%
ROICexc growth 3Y-4.71%
ROICexc growth 5Y0%
OM growth 3Y-2.8%
OM growth 5Y1.5%
PM growth 3Y-45.18%
PM growth 5Y-33.24%
GM growth 3Y-4.47%
GM growth 5Y-2.32%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 8.23 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 44.05% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 4.54 | ||
| Cash Conversion | 56.21% | ||
| Profit Quality | 193.46% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.96 |
F-Score5
WACC10.31%
ROIC/WACC0.63
Cap/Depr(3y)59.41%
Cap/Depr(5y)55.97%
Cap/Sales(3y)4.41%
Cap/Sales(5y)5.25%
Profit Quality(3y)148.35%
Profit Quality(5y)126.65%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.1%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS Q2Q%723.53%
EPS Next Y61.41%
EPS Next 2Y26.37%
EPS Next 3Y18.74%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y11.99%
Revenue growth 5Y7.46%
Sales Q2Q%33.78%
Revenue Next Year7.12%
Revenue Next 2Y3.64%
Revenue Next 3Y2.55%
Revenue Next 5Y0.54%
EBIT growth 1Y-34.77%
EBIT growth 3Y8.85%
EBIT growth 5Y9.07%
EBIT Next Year205.03%
EBIT Next 3Y46.61%
EBIT Next 5Y25.53%
FCF growth 1Y-64.8%
FCF growth 3Y-25.54%
FCF growth 5Y-18.86%
OCF growth 1Y-57.66%
OCF growth 3Y-15.47%
OCF growth 5Y-11.28%