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PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis

NYSE:PM - New York Stock Exchange, Inc. - US7181721090 - Common Stock - Currency: USD

175.23  +0.59 (+0.34%)

Premarket: 175 -0.23 (-0.13%)

Fundamental Rating

5

Taking everything into account, PM scores 5 out of 10 in our fundamental rating. PM was compared to 8 industry peers in the Tobacco industry. PM has an excellent profitability rating, but there are some minor concerns on its financial health. PM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

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.
In the past 5 years PM has always been profitable.
PM had a positive operating cash flow in each of the past 5 years.
PM Yearly Net Income VS EBIT VS OCF VS FCFPM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

With an excellent Return On Assets value of 11.64%, PM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Invested Capital of PM (25.67%) is better than 87.50% of its industry peers.
PM had an Average Return On Invested Capital over the past 3 years of 25.07%. This is significantly above the industry average of 16.58%.
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 RankSector 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%
PM Yearly ROA, ROE, ROICPM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100

1.3 Margins

PM's Profit Margin of 19.73% is fine compared to the rest of the industry. PM outperforms 75.00% of its industry peers.
PM's Profit Margin has declined in the last couple of years.
PM has a Operating Margin of 36.24%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of PM has remained more or less at the same level.
With an excellent Gross Margin value of 65.68%, PM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of PM has remained more or less at the same level.
Industry RankSector 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%
PM Yearly Profit, Operating, Gross MarginsPM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PM is creating value.
Compared to 1 year ago, PM has about the same amount of shares outstanding.
Compared to 5 years ago, PM has about the same amount of shares outstanding.
Compared to 1 year ago, PM has a worse debt to assets ratio.
PM Yearly Shares OutstandingPM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
PM Yearly Total Debt VS Total AssetsPM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

An Altman-Z score of 4.06 indicates that PM is not in any danger for bankruptcy at the moment.
PM has a better Altman-Z score (4.06) than 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 better Debt to FCF ratio (4.86) than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.86
Altman-Z 4.06
ROIC/WACC3.12
WACC8.24%
PM Yearly LT Debt VS Equity VS FCFPM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B 40B

2.3 Liquidity

A Current Ratio of 0.79 indicates that PM may have some problems paying its short term obligations.
PM's Current ratio of 0.79 is on the low side compared to the rest of the industry. PM is outperformed by 62.50% of its industry peers.
A Quick Ratio of 0.43 indicates that PM may have some problems paying its short term obligations.
PM has a worse Quick ratio (0.43) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.43
PM Yearly Current Assets VS Current LiabilitesPM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.95% over the past year.
Measured over the past 5 years, PM shows a small growth in Earnings Per Share. The EPS has been growing by 4.72% on average per year.
Looking at the last year, PM shows a small growth in Revenue. The Revenue has grown by 6.78% in the last year.
The Revenue has been growing slightly by 4.91% on average over the past years.
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 10.38% on average per year.
PM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.64% yearly.
EPS Next Y17.51%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
EPS Next 5Y10.38%
Revenue Next Year9.4%
Revenue Next 2Y8.85%
Revenue Next 3Y7.97%
Revenue Next 5Y7.64%

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.
PM Yearly Revenue VS EstimatesPM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B 50B
PM Yearly EPS VS EstimatesPM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

2

4. Valuation

4.1 Price/Earnings Ratio

PM is valuated quite expensively with a Price/Earnings ratio of 26.00.
Based on the Price/Earnings ratio, PM is valued a bit more expensive than 62.50% of the companies in the same industry.
PM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.49, which indicates a rather expensive current valuation of PM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PM to the average of the S&P500 Index (21.85), we can say PM is valued inline with the index average.
Industry RankSector Rank
PE 26
Fwd PE 20.49
PM Price Earnings VS Forward Price EarningsPM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

PM's Enterprise Value to EBITDA ratio is in line with the industry average.
PM's Price/Free Cash Flow 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.
Industry RankSector Rank
P/FCF 26.75
EV/EBITDA 19.82
PM Per share dataPM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20

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)1.48
PEG (5Y)5.5
EPS Next 2Y14.26%
EPS Next 3Y12.8%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.19%, PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.06, PM pays a bit more dividend than its industry peers.
PM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

The dividend of PM has a limited annual growth rate of 2.76%.
PM has been paying a dividend for at least 10 years, so it has a reliable track record.
PM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.76%
Div Incr Years15
Div Non Decr Years15
PM Yearly Dividends per sharePM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

PM pays out 109.27% of its income as dividend. This is not a sustainable payout ratio.
PM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP109.27%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
PM Yearly Income VS Free CF VS DividendPM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
PM Dividend Payout.PM Dividend Payout, showing the Payout Ratio.PM Dividend Payout.PayoutRetained Earnings

PHILIP MORRIS INTERNATIONAL

NYSE:PM (5/22/2025, 8:04:00 PM)

Premarket: 175 -0.23 (-0.13%)

175.23

+0.59 (+0.34%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners80.71%
Inst Owner Change1.75%
Ins Owners0.13%
Ins Owner Change3.46%
Market Cap272.75B
Analysts81.67
Price Target177.56 (1.33%)
Short Float %0.9%
Short Ratio2.06
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years15
Div Non Decr Years15
Ex-Date03-20 2025-03-20 (1.35)
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)16.66%
PT rev (3m)27.13%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)4.33%
EPS NY rev (1m)3.27%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)3.03%
Revenue NQ rev (3m)4.24%
Revenue NY rev (1m)2.68%
Revenue NY rev (3m)3.86%
Valuation
Industry RankSector Rank
PE 26
Fwd PE 20.49
P/S 7.11
P/FCF 26.75
P/OCF 23.46
P/B N/A
P/tB N/A
EV/EBITDA 19.82
EPS(TTM)6.74
EY3.85%
EPS(NY)8.55
Fwd EY4.88%
FCF(TTM)6.55
FCFY3.74%
OCF(TTM)7.47
OCFY4.26%
SpS24.66
BVpS-7
TBVpS-25.13
PEG (NY)1.48
PEG (5Y)5.5
Profitability
Industry RankSector 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 RankSector 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 4.06
F-Score6
WACC8.24%
ROIC/WACC3.12
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 5Y10.38%
Revenue 1Y (TTM)6.78%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%5.78%
Revenue Next Year9.4%
Revenue Next 2Y8.85%
Revenue Next 3Y7.97%
Revenue Next 5Y7.64%
EBIT growth 1Y1.8%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year19.22%
EBIT Next 3Y11.82%
EBIT Next 5Y10.29%
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%