PFIZER INC (PFE) Stock Fundamental Analysis
USA - NYSE:PFE - US7170811035 - Common Stock
24.65 USD
+0.36 (+1.48%)
24.67 USD
+0.02 (+0.08%)
PFE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but 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.
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's Return On Assets of 5.22% is amongst the best of the industry. PFE outperforms 88.54% of its industry peers.
PFE's Return On Equity of 12.12% is amongst the best of the industry. PFE outperforms 88.02% of its industry peers.
The Return On Invested Capital of PFE (8.54%) is better than 86.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is below the industry average of 15.40%.
| 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's Profit Margin of 16.84% is amongst the best of the industry. PFE outperforms 90.63% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
The Operating Margin of PFE (28.52%) is better than 93.23% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
PFE has a better Gross Margin (73.96%) than 81.25% of its industry peers.
PFE's Gross Margin has declined in the last couple of years.
| 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
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.
The number of shares outstanding for PFE has been increased compared to 5 years ago.
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.
PFE's Altman-Z score of 2.15 is fine compared to the rest of the industry. PFE outperforms 65.10% of its industry peers.
The Debt to FCF ratio of PFE is 4.97, which is a neutral value as it means it would take PFE, 4.97 years of fcf income to pay off all of its debts.
PFE has a Debt to FCF ratio of 4.97. This is amongst the best in the industry. PFE outperforms 82.81% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that PFE is somewhat dependend on debt financing.
PFE has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: PFE underperforms 67.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.01
WACC8.43%
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 78.65% of its industry peers.
A Quick Ratio of 0.85 indicates that PFE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, PFE is doing worse than 79.69% of the companies in the same industry.
| 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.
PFE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.54%.
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)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
The Earnings Per Share is expected to decrease by -4.74% on average over the next years.
The Revenue is expected to decrease by -2.93% on average over the next years.
EPS Next Y-0.3%
EPS Next 2Y1.31%
EPS Next 3Y0.63%
EPS Next 5Y-4.74%
Revenue Next Year-0.06%
Revenue Next 2Y-0.35%
Revenue Next 3Y-1.04%
Revenue Next 5Y-2.93%
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
PFE is valuated cheaply with a Price/Earnings ratio of 7.27.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.11, PFE is valued rather cheaply.
PFE is valuated cheaply with a Price/Forward Earnings ratio of 7.72.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.55. PFE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 93.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.27 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The decent profitability rating of PFE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.85
EPS Next 2Y1.31%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 7.01%, which is a nice return.
Compared to an average industry Dividend Yield of 6.54, PFE pays a better dividend. On top of this PFE pays more dividend than 98.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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
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 2Y1.31%
EPS Next 3Y0.63%
24.65
+0.36 (+1.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change-0.69%
Ins Owners0.02%
Ins Owner Change0%
Market Cap140.15B
Revenue(TTM)63.83B
Net Income(TTM)10.75B
Analysts71.33
Price Target29.6 (20.08%)
Short Float %2.06%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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)-0.37%
PT rev (3m)0.91%
EPS NQ rev (1m)-12.67%
EPS NQ rev (3m)-27.64%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)-2.9%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 7.72 | ||
| P/S | 2.2 | ||
| P/FCF | 11.27 | ||
| P/OCF | 9.23 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)3.39
EY13.75%
EPS(NY)3.19
Fwd EY12.95%
FCF(TTM)2.19
FCFY8.87%
OCF(TTM)2.67
OCFY10.84%
SpS11.23
BVpS15.6
TBVpS-5.8
PEG (NY)N/A
PEG (5Y)6.85
Graham Number34.49
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%
ROICexgc growth 3Y-10.89%
ROICexgc 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 | 2.15 |
F-Score7
WACC8.43%
ROIC/WACC1.01
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 Y-0.3%
EPS Next 2Y1.31%
EPS Next 3Y0.63%
EPS Next 5Y-4.74%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%10.31%
Revenue Next Year-0.06%
Revenue Next 2Y-0.35%
Revenue Next 3Y-1.04%
Revenue Next 5Y-2.93%
EBIT growth 1Y65.39%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year16.68%
EBIT Next 3Y5.82%
EBIT Next 5Y0.93%
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%
PFIZER INC / PFE FAQ
What is the ChartMill fundamental rating of PFIZER INC (PFE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PFE.
What is the valuation status for PFE stock?
ChartMill assigns a valuation rating of 8 / 10 to PFIZER INC (PFE). This can be considered as Undervalued.
How profitable is PFIZER INC (PFE) stock?
PFIZER INC (PFE) has a profitability rating of 7 / 10.
What is the valuation of PFIZER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PFIZER INC (PFE) is 7.27 and the Price/Book (PB) ratio is 1.58.
What is the expected EPS growth for PFIZER INC (PFE) stock?
The Earnings per Share (EPS) of PFIZER INC (PFE) is expected to decline by -0.3% in the next year.