PFIZER INC (PFE)

US7170811035 - Common Stock

27.83  +0.05 (+0.18%)

Fundamental Rating

6

PFE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 203 industry peers in the Pharmaceuticals industry. While PFE has a great profitability rating, there are quite some concerns on its financial health. PFE has a bad growth rate and is valued cheaply. Finally PFE also has an excellent dividend rating.



8

1. Profitability

1.1 Basic Checks

PFE had positive earnings in the past year.
In the past year PFE had a positive cash flow from operations.
PFE had positive earnings in each of the past 5 years.
Each year in the past 5 years PFE had a positive operating cash flow.

1.2 Ratios

PFE has a better Return On Assets (0.94%) than 82.59% of its industry peers.
Looking at the Return On Equity, with a value of 2.38%, PFE belongs to the top of the industry, outperforming 84.58% of the companies in the same industry.
PFE's Return On Invested Capital of 6.01% is amongst the best of the industry. PFE outperforms 85.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PFE is in line with the industry average of 16.07%.
The last Return On Invested Capital (6.01%) for PFE is well below the 3 year average (15.63%), which needs to be investigated, but indicates that PFE had better years and this may not be a problem.
Industry RankSector Rank
ROA 0.94%
ROE 2.38%
ROIC 6.01%
ROA(3y)9.65%
ROA(5y)8.98%
ROE(3y)21.22%
ROE(5y)20.92%
ROIC(3y)15.64%
ROIC(5y)12.2%

1.3 Margins

PFE has a Profit Margin of 3.62%. This is amongst the best in the industry. PFE outperforms 84.58% of its industry peers.
PFE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.21%, PFE belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
PFE's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 68.77%, PFE is doing good in the industry, outperforming 72.64% of the companies in the same industry.
PFE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 21.21%
PM (TTM) 3.62%
GM 68.77%
OM growth 3Y-7.6%
OM growth 5Y0.6%
PM growth 3Y-45.95%
PM growth 5Y-33.24%
GM growth 3Y-4.36%
GM growth 5Y-2.32%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PFE is creating value.
Compared to 1 year ago, PFE has more shares outstanding
PFE has less shares outstanding than it did 5 years ago.
PFE has a worse debt/assets ratio than last year.

2.2 Solvency

PFE has an Altman-Z score of 1.83. 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.
Looking at the Altman-Z score, with a value of 1.83, PFE is in the better half of the industry, outperforming 66.17% of the companies in the same industry.
PFE has a debt to FCF ratio of 15.00. This is a negative value and a sign of low solvency as PFE would need 15.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.00, PFE belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that PFE is somewhat dependend on debt financing.
The Debt to Equity ratio of PFE (0.78) is worse than 69.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 15
Altman-Z 1.83
ROIC/WACC0.79
WACC7.57%

2.3 Liquidity

A Current Ratio of 0.91 indicates that PFE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, PFE is doing worse than 89.05% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that PFE may have some problems paying its short term obligations.
PFE has a Quick ratio of 0.69. This is amonst the worse of the industry: PFE underperforms 86.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.69

3

3. Growth

3.1 Past

PFE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.40%.
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 -41.70% 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)-72.4%
EPS 3Y-12.38%
EPS 5Y-9.41%
EPS growth Q2Q-91.23%
Revenue 1Y (TTM)-41.7%
Revenue growth 3Y11.76%
Revenue growth 5Y7.46%
Revenue growth Q2Q-41.34%

3.2 Future

Based on estimates for the next years, PFE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.13% on average per year.
The Revenue is expected to grow by 1.99% on average over the next years.
EPS Next Y21.51%
EPS Next 2Y23.08%
EPS Next 3Y16.89%
EPS Next 5Y15.13%
Revenue Next Year2.16%
Revenue Next 2Y3.44%
Revenue Next 3Y2.63%
Revenue Next 5Y1.99%

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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

8

4. Valuation

4.1 Price/Earnings Ratio

PFE is valuated correctly with a Price/Earnings ratio of 15.21.
PFE's Price/Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 85.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of PFE to the average of the S&P500 Index (26.42), we can say PFE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.52, the valuation of PFE can be described as correct.
PFE's Price/Forward Earnings ratio is rather cheap when compared to the industry. PFE is cheaper than 88.06% of the companies in the same industry.
PFE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 15.21
Fwd PE 12.52

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 86.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PFE indicates a rather cheap valuation: PFE is cheaper than 80.60% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.79
EV/EBITDA 10.6

4.3 Compensation for Growth

PFE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PFE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PFE's earnings are expected to grow with 16.89% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y23.08%
EPS Next 3Y16.89%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.07%, PFE is a good candidate for dividend investing.
PFE's Dividend Yield is rather good when compared to the industry average which is at 4.28. PFE pays more dividend than 98.01% of the companies in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 6.07%

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 Years13
Div Non Decr Years13

5.3 Sustainability

PFE pays out 436.39% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PFE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP436.39%
EPS Next 2Y23.08%
EPS Next 3Y16.89%

PFIZER INC

NYSE:PFE (3/28/2024, 10:09:10 AM)

27.83

+0.05 (+0.18%)

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 Cap157.15B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.07%
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)
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Revenue beat(2)
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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 15.21
Fwd PE 12.52
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)0.71
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.94%
ROE 2.38%
ROCE
ROIC
ROICexc
ROICexgc
OM 21.21%
PM (TTM) 3.62%
GM 68.77%
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 Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.91
Quick Ratio 0.69
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)-72.4%
EPS 3Y-12.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-41.7%
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