PFIZER INC (PFE) Stock Fundamental Analysis
NYSE:PFE - New York Stock Exchange, Inc. - US7170811035 - Common Stock - Currency: USD
Taking everything into account, PFE scores 6 out of 10 in our fundamental rating. PFE was compared to 193 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but there are some minor concerns on its financial health. PFE is valued quite cheap, while showing a decent growth score. This is a good 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.
Each year in the past 5 years PFE has been profitable.
In the past 5 years PFE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.79%, PFE belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.73%, PFE belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
PFE's Return On Invested Capital of 7.77% is amongst the best of the industry. PFE outperforms 85.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is below the industry average of 14.92%.
| 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 has a better Profit Margin (12.62%) than 89.18% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
PFE has a Operating Margin of 27.12%. This is amongst the best in the industry. PFE outperforms 93.81% of its industry peers.
PFE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 74.57%, PFE belongs to the top of the industry, outperforming 82.99% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PFE is still creating some value.
The number of shares outstanding for PFE has been increased compared to 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 2.11 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE has a better Altman-Z score (2.11) than 67.53% of its industry peers.
The Debt to FCF ratio of PFE is 5.54, which is a neutral value as it means it would take PFE, 5.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PFE (5.54) is better than 82.99% of its industry peers.
PFE has a Debt/Equity ratio of 0.65. This is a neutral value indicating PFE is somewhat dependend on debt financing.
The Debt to Equity ratio of PFE (0.65) is worse than 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.88
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.26 indicates that PFE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, PFE is not doing good in the industry: 77.32% of the companies in the same industry are doing better.
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.
PFE has a Quick ratio of 0.96. This is in the lower half of the industry: PFE underperforms 77.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 126.06% over the past year.
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 11.65%.
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
PFE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.69% yearly.
Based on estimates for the next years, PFE will show a decrease in Revenue. The Revenue will decrease by -2.58% on average per year.
EPS Next Y-2.62%
EPS Next 2Y0.25%
EPS Next 3Y0.22%
EPS Next 5Y-3.69%
Revenue Next Year-0.79%
Revenue Next 2Y-0.73%
Revenue Next 3Y-1.13%
Revenue Next 5Y-2.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 7.32, which indicates a rather cheap valuation of PFE.
Compared to the rest of the industry, the Price/Earnings ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 92.78% of the companies listed in the same industry.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.52, 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 88.66% of the companies are valued more expensively.
PFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 7.52 |
4.2 Price Multiples
PFE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PFE is cheaper than 93.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PFE is valued cheaper than 89.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
PFE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.89
EPS Next 2Y0.25%
EPS Next 3Y0.22%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 7.39%, which is a nice return.
Compared to an average industry Dividend Yield of 4.21, PFE pays a better dividend. On top of this PFE pays more dividend than 98.45% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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
PFE pays out 121.49% of its income as dividend. 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 2Y0.25%
EPS Next 3Y0.22%
23.49
+0.2 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.59%
Inst Owner Change-0.06%
Ins Owners0.02%
Ins Owner Change1.75%
Market Cap133.55B
Analysts70
Price Target29.34 (24.9%)
Short Float %1.75%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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)34.98%
Min EPS beat(2)32.52%
Max EPS beat(2)37.45%
EPS beat(4)4
Avg EPS beat(4)42.48%
Min EPS beat(4)30.28%
Max EPS beat(4)69.69%
EPS beat(8)8
Avg EPS beat(8)54.64%
EPS beat(12)12
Avg EPS beat(12)42.48%
EPS beat(16)16
Avg EPS beat(16)36.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)4.42%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)17.22%
Revenue beat(8)4
Avg Revenue beat(8)1.74%
Revenue beat(12)8
Avg Revenue beat(12)3.23%
Revenue beat(16)10
Avg Revenue beat(16)2.93%
PT rev (1m)0.67%
PT rev (3m)-1.26%
EPS NQ rev (1m)2.66%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 7.52 | ||
| P/S | 2.14 | ||
| P/FCF | 11.9 | ||
| P/OCF | 9.55 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.78 |
EPS(TTM)3.21
EY13.67%
EPS(NY)3.13
Fwd EY13.3%
FCF(TTM)1.97
FCFY8.4%
OCF(TTM)2.46
OCFY10.47%
SpS10.99
BVpS15.89
TBVpS-5.64
PEG (NY)N/A
PEG (5Y)6.89
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 | 2.11 |
F-Score8
WACC8.78%
ROIC/WACC0.88
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-2.62%
EPS Next 2Y0.25%
EPS Next 3Y0.22%
EPS Next 5Y-3.69%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y-7.84%
Revenue growth 5Y9.1%
Sales Q2Q%-7.82%
Revenue Next Year-0.79%
Revenue Next 2Y-0.73%
Revenue Next 3Y-1.13%
Revenue Next 5Y-2.58%
EBIT growth 1Y56.33%
EBIT growth 3Y-15.3%
EBIT growth 5Y12.71%
EBIT Next Year21.61%
EBIT Next 3Y6.42%
EBIT Next 5Y3.52%
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%