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 198 industry peers in the Pharmaceuticals industry. PFE has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PFE. Finally PFE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PFE was profitable.
PFE had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.79%, PFE belongs to the top of the industry, outperforming 85.86% 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 86.36% 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 84.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PFE is significantly below the industry average of 42.34%.
| 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 88.89% 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 92.93% of the companies in the same industry.
PFE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.57%, PFE belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
PFE's Gross Margin has declined in the last couple of years.
| 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.
PFE has more shares outstanding than it did 1 year ago.
PFE has more shares outstanding than it did 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 2.09 indicates that PFE is not a great score, but indicates only limited risk for bankruptcy at the moment.
PFE's Altman-Z score of 2.09 is fine compared to the rest of the industry. PFE outperforms 70.71% 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.
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.
The Debt to Equity ratio of PFE (0.65) is worse 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
WACC9.23%
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.
PFE's Current ratio of 1.26 is on the low side compared to the rest of the industry. PFE is outperformed by 77.27% of its industry peers.
A Quick Ratio of 0.96 indicates that PFE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, PFE is doing worse than 77.27% of the companies in the same industry.
| 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.
PFE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
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
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-1.51%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
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.
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 7.33 indicates a rather cheap valuation of PFE.
Based on the Price/Earnings ratio, PFE is valued cheaply inside the industry as 92.93% of the companies are valued more expensively.
PFE is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.46 indicates a rather cheap valuation of PFE.
Based on the Price/Forward Earnings ratio, PFE is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
PFE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PFE is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
88.89% of the companies in the same industry are more expensive than PFE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 6.65 |
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)6.9
EPS Next 2Y0.72%
EPS Next 3Y0.36%
5. Dividend
5.1 Amount
PFE has a Yearly Dividend Yield of 7.61%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, 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 2.36, PFE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
5.2 History
The dividend of PFE has a limited annual growth rate of 3.30%.
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)3.3%
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.
PFE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP121.49%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
23.52
+0.52 (+2.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners67.49%
Inst Owner Change-0.22%
Ins Owners0.02%
Ins Owner Change1.53%
Market Cap133.39B
Analysts70
Price Target29.43 (25.13%)
Short Float %2.03%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
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)-6.52%
PT rev (3m)-8.38%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)2.57%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.33 | ||
| Fwd PE | 7.46 | ||
| P/S | 2.14 | ||
| P/FCF | 11.89 | ||
| P/OCF | 9.54 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)3.21
EY13.65%
EPS(NY)3.15
Fwd EY13.41%
FCF(TTM)1.98
FCFY8.41%
OCF(TTM)2.47
OCFY10.49%
SpS11.01
BVpS15.93
TBVpS-5.66
PEG (NY)N/A
PEG (5Y)6.9
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
WACC9.23%
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-1.51%
EPS Next 2Y0.72%
EPS Next 3Y0.36%
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%