PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
NYSE:PM - New York Stock Exchange, Inc. - US7181721090 - Common Stock - Currency: USD
PM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. PM scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, PM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PM had positive earnings in the past year.
PM had a positive operating cash flow in the past year.
Each year in the past 5 years PM has been profitable.
PM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PM (11.64%) is better than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.67%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PM is significantly above the industry average of 14.11%.
The last Return On Invested Capital (25.67%) for PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROIC | 25.67% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
1.3 Margins
With a decent Profit Margin value of 19.73%, PM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
PM's Profit Margin has declined in the last couple of years.
PM's Operating Margin of 36.24% is amongst the best of the industry. PM outperforms 87.50% of its industry peers.
PM's Operating Margin has been stable in the last couple of years.
PM's Gross Margin of 65.68% is amongst the best of the industry. PM outperforms 87.50% of its industry peers.
PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% |
OM growth 3Y-4.61%
OM growth 5Y-0.93%
PM growth 3Y-13.73%
PM growth 5Y-5.04%
GM growth 3Y-1.62%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
PM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PM remains at a similar level compared to 1 year ago.
PM has about the same amout of shares outstanding than it did 5 years ago.
PM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that PM is not in any danger for bankruptcy at the moment.
PM's Altman-Z score of 4.11 is fine compared to the rest of the industry. PM outperforms 75.00% of its industry peers.
PM has a debt to FCF ratio of 4.86. This is a neutral value as PM would need 4.86 years to pay back of all of its debts.
PM has a Debt to FCF ratio (4.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.11 |
ROIC/WACC3.13
WACC8.19%
2.3 Liquidity
PM has a Current Ratio of 0.79. This is a bad value and indicates that PM is not financially healthy enough and could expect problems in meeting its short term obligations.
PM has a Current ratio (0.79) which is comparable to the rest of the industry.
A Quick Ratio of 0.43 indicates that PM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, PM is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.95%, which is quite good.
PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.72% yearly.
PM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.78%.
PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
EPS 1Y (TTM)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
3.2 Future
Based on estimates for the next years, PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
PM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y17.51%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
EPS Next 5Y11.07%
Revenue Next Year9.34%
Revenue Next 2Y8.8%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.21, the valuation of PM can be described as expensive.
Based on the Price/Earnings ratio, PM is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.59, PM is valued at the same level.
A Price/Forward Earnings ratio of 21.44 indicates a rather expensive valuation of PM.
PM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PM is more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, PM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PM is on the same level as its industry peers.
62.50% of the companies in the same industry are cheaper than PM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 20.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PM may justify a higher PE ratio.
PM's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)5.76
EPS Next 2Y14.26%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
PM's Dividend Yield is a higher than the industry average which is at 3.82.
Compared to an average S&P500 Dividend Yield of 2.39, PM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.76%.
PM has paid a dividend for at least 10 years, which is a reliable track record.
PM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.76%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
109.27% of the earnings are spent on dividend by PM. This is not a sustainable payout ratio.
The dividend of PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP109.27%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
183.37
+4.34 (+2.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner Change1.76%
Ins Owners0.13%
Ins Owner Change3.46%
Market Cap285.42B
Analysts80
Price Target180.65 (-1.48%)
Short Float %0.86%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.08%
Min EPS beat(2)0.44%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.59%
Min EPS beat(4)-1.59%
Max EPS beat(4)1.78%
EPS beat(8)6
Avg EPS beat(8)0.36%
EPS beat(12)9
Avg EPS beat(12)2.9%
EPS beat(16)10
Avg EPS beat(16)2.04%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)0.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)1.23%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)13.51%
PT rev (3m)21.7%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)3.27%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)4.09%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 21.44 | ||
| P/S | 7.44 | ||
| P/FCF | 28 | ||
| P/OCF | 24.55 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.2 |
EPS(TTM)6.74
EY3.68%
EPS(NY)8.55
Fwd EY4.66%
FCF(TTM)6.55
FCFY3.57%
OCF(TTM)7.47
OCFY4.07%
SpS24.66
BVpS-7
TBVpS-25.13
PEG (NY)1.55
PEG (5Y)5.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.64% | ||
| ROE | N/A | ||
| ROCE | 37.61% | ||
| ROIC | 25.67% | ||
| ROICexc | 28.75% | ||
| ROICexgc | 121.16% | ||
| OM | 36.24% | ||
| PM (TTM) | 19.73% | ||
| GM | 65.68% | ||
| FCFM | 26.56% |
ROA(3y)12.65%
ROA(5y)15.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.07%
ROIC(5y)31.2%
ROICexc(3y)27.51%
ROICexc(5y)37.8%
ROICexgc(3y)111.48%
ROICexgc(5y)109.03%
ROCE(3y)35.09%
ROCE(5y)42.41%
ROICexcg growth 3Y8.03%
ROICexcg growth 5Y11.03%
ROICexc growth 3Y-18.85%
ROICexc growth 5Y-9.39%
OM growth 3Y-4.61%
OM growth 5Y-0.93%
PM growth 3Y-13.73%
PM growth 5Y-5.04%
GM growth 3Y-1.62%
GM growth 5Y0.03%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | 75.32% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 134.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 4.11 |
F-Score6
WACC8.19%
ROIC/WACC3.13
Cap/Depr(3y)88.63%
Cap/Depr(5y)80.44%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.09%
Profit Quality(3y)120.71%
Profit Quality(5y)120.05%
High Growth Momentum
Growth
EPS 1Y (TTM)9.95%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%12.67%
EPS Next Y17.51%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
EPS Next 5Y11.07%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
Revenue Next Year9.34%
Revenue Next 2Y8.8%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
EBIT growth 1Y1.8%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.13%
EBIT Next 3Y13.89%
EBIT Next 5Y11.71%
FCF growth 1Y34.09%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y33.17%
OCF growth 3Y0.69%
OCF growth 5Y3.9%