PFIZER INC (PFE)

US7170811035 - Common Stock

27.18  -0.58 (-2.09%)

Premarket: 27.22 +0.04 (+0.15%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to PFE. PFE was compared to 202 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are some minor concerns on its financial health. PFE is valued quite cheap, but it does not seem to be growing. Finally PFE also has an excellent dividend rating. This makes PFE very considerable for value and dividend investing!



7

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.
Of the past 5 years PFE 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of PFE (4.87%) is better than 89.00% of its industry peers.
PFE has a Return On Equity of 10.81%. This is amongst the best in the industry. PFE outperforms 89.50% of its industry peers.
PFE's Return On Invested Capital of 9.08% is amongst the best of the industry. PFE outperforms 89.00% of its industry peers.
Industry RankSector Rank
ROA 4.87%
ROE 10.81%
ROIC 9.08%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

PFE has a better Profit Margin (15.29%) than 90.50% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.00%, PFE belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
PFE's Operating Margin has been stable in the last couple of years.
PFE has a Gross Margin of 69.03%. This is in the better half of the industry: PFE outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of PFE has declined.
Industry RankSector Rank
OM 27%
PM (TTM) 15.29%
GM 69.03%
OM growth 3Y-7.83%
OM growth 5Y0.46%
PM growth 3Y-45.95%
PM growth 5Y-33.24%
GM growth 3Y-4.36%
GM growth 5Y-2.32%

5

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

PFE has an Altman-Z score of 2.44. 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 2.44, PFE is doing good in the industry, outperforming 71.00% of the companies in the same industry.
PFE has a debt to FCF ratio of 7.78. This is a slightly negative value and a sign of low solvency as PFE would need 7.78 years to pay back of all of its debts.
PFE has a Debt to FCF ratio of 7.78. This is amongst the best in the industry. PFE outperforms 81.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that PFE is somewhat dependend on debt financing.
PFE has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: PFE underperforms 64.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 7.78
Altman-Z 2.44
ROIC/WACC1.07
WACC8.47%

2.3 Liquidity

PFE has a Current Ratio of 2.38. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PFE (2.38) is worse than 64.00% of its industry peers.
PFE has a Quick Ratio of 2.05. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PFE (2.05) is worse than 60.50% of its industry peers.
Industry RankSector Rank
Current Ratio 2.38
Quick Ratio 2.05

3

3. Growth

3.1 Past

The earnings per share for PFE have decreased strongly by -56.32% 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 -31.24% 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)-56.32%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS growth Q2Q-109.55%
Revenue 1Y (TTM)-31.24%
Revenue growth 3Y11.76%
Revenue growth 5Y7.46%
Revenue growth Q2Q-41.55%

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 15.13% yearly.
The Revenue is expected to grow by 1.99% on average over the next years.
EPS Next Y25.32%
EPS Next 2Y22.83%
EPS Next 3Y26.63%
EPS Next 5Y15.13%
Revenue Next Year2.93%
Revenue Next 2Y3.81%
Revenue Next 3Y3.1%
Revenue Next 5Y1.99%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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.

9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.47, the valuation of PFE can be described as very reasonable.
92.50% 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 25.81, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.85 indicates a reasonable valuation of PFE.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 87.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. PFE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 9.47
Fwd PE 11.85

4.2 Price Multiples

96.00% of the companies in the same industry are more expensive than PFE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 84.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.76
EV/EBITDA 5.34

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.
PFE's earnings are expected to grow with 26.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y22.83%
EPS Next 3Y26.63%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.10%, PFE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.27, PFE pays a better dividend. On top of this PFE pays more dividend than 98.00% of the companies listed in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 6.1%

5.2 History

The dividend of PFE has a limited annual growth rate of 4.69%.
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)4.69%
Div Incr Years13
Div Non Decr Years13

5.3 Sustainability

87.55% of the earnings are spent on dividend by PFE. This is not a sustainable payout ratio.
The dividend of PFE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP87.55%
EPS Next 2Y22.83%
EPS Next 3Y26.63%

PFIZER INC

NYSE:PFE (2/26/2024, 7:04:00 PM)

Premarket: 27.22 +0.04 (+0.15%)

27.18

-0.58 (-2.09%)

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 Cap153.47B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.1%
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 9.47
Fwd PE 11.85
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)0.37
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.87%
ROE 10.81%
ROCE
ROIC
ROICexc
ROICexgc
OM 27%
PM (TTM) 15.29%
GM 69.03%
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 Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.38
Quick Ratio 2.05
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)
Growth
EPS 1Y (TTM)-56.32%
EPS 3Y-12.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-31.24%
Revenue growth 3Y11.76%
Revenue growth 5Y
Revenue growth 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