PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PM - US7181721090 - Common Stock
160.29 USD
-0.11 (-0.07%)
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 concerns on its financial health. PM has a correct valuation and a medium growth rate.
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.
1.2 Ratios
The Return On Assets of PM (12.83%) is better than 87.50% of its industry peers.
The Return On Invested Capital of PM (28.03%) 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 14.25%.
The last Return On Invested Capital (28.03%) for PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | N/A | ||
| ROIC | 28.03% |
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
Looking at the Profit Margin, with a value of 21.51%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 38.71%, PM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
PM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 66.93%, PM belongs to the top 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.71% | ||
| PM (TTM) | 21.51% | ||
| GM | 66.93% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PM 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.
Compared to 1 year ago, PM has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PM is 4.95, which is a neutral value as it means it would take PM, 4.95 years of fcf income to pay off all of its debts.
PM has a Debt to FCF ratio of 4.95. This is in the better half of the industry: PM outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.24
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.85 indicates that PM may have some problems paying its short term obligations.
PM has a Current ratio of 0.85. This is in the lower half of the industry: PM underperforms 75.00% of its industry peers.
A Quick Ratio of 0.85 indicates that PM may have some problems paying its short term obligations.
PM has a Quick ratio of 0.85. This is in the lower half of the industry: PM underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.19% 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 7.45% in the last year.
Measured over the past years, PM shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
EPS 1Y (TTM)16.19%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%17.28%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
3.2 Future
The Earnings Per Share is expected to grow by 11.60% on average over the next years. This is quite good.
PM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.66% yearly.
EPS Next Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
Revenue Next 5Y7.66%
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
A Price/Earnings ratio of 21.69 indicates a rather expensive valuation of PM.
Based on the Price/Earnings ratio, PM is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, PM is valued at the same level.
With a Price/Forward Earnings ratio of 18.65, PM is valued on the expensive side.
PM's Price/Forward Earnings is on the same level as the industry average.
PM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PM indicates a somewhat cheap valuation: PM is cheaper than 75.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.65 | ||
| EV/EBITDA | 16.86 |
4.3 Compensation for Growth
PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PM has an outstanding profitability rating, which may justify a higher PE ratio.
PM's earnings are expected to grow with 12.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)4.59
EPS Next 2Y14.56%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.46, PM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
PM pays out 98.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.07%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
NYSE:PM (1/2/2026, 3:20:10 PM)
160.29
-0.11 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners82.79%
Inst Owner Change1.97%
Ins Owners0.14%
Ins Owner Change0%
Market Cap249.51B
Revenue(TTM)39.99B
Net Income(TTM)8.60B
Analysts82.31
Price Target184.73 (15.25%)
Short Float %1.13%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP98.07%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.82%
Min EPS beat(2)-0.19%
Max EPS beat(2)3.83%
EPS beat(4)3
Avg EPS beat(4)1.45%
Min EPS beat(4)-0.19%
Max EPS beat(4)3.83%
EPS beat(8)5
Avg EPS beat(8)0.05%
EPS beat(12)8
Avg EPS beat(12)1.26%
EPS beat(16)11
Avg EPS beat(16)2.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.2%
Revenue beat(12)4
Avg Revenue beat(12)-0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)-1.4%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.9%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.65 | ||
| P/S | 6.24 | ||
| P/FCF | 24.65 | ||
| P/OCF | 21.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.86 |
EPS(TTM)7.39
EY4.61%
EPS(NY)8.6
Fwd EY5.36%
FCF(TTM)6.5
FCFY4.06%
OCF(TTM)7.4
OCFY4.62%
SpS25.69
BVpS-7.01
TBVpS-25.21
PEG (NY)1.18
PEG (5Y)4.59
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | N/A | ||
| ROCE | 38.37% | ||
| ROIC | 28.03% | ||
| ROICexc | 30.99% | ||
| ROICexgc | 120.05% | ||
| OM | 38.71% | ||
| PM (TTM) | 21.51% | ||
| GM | 66.93% | ||
| FCFM | 25.31% |
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%
ROICexgc growth 3Y8.03%
ROICexgc 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 71.88% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.12% | ||
| Profit Quality | 117.7% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | N/A |
F-Score6
WACC8.66%
ROIC/WACC3.24
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)16.19%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%17.28%
EPS Next Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
Revenue Next 5Y7.66%
EBIT growth 1Y11.17%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.42%
EBIT Next 3Y12.92%
EBIT Next 5Y11.52%
FCF growth 1Y32.53%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y28.14%
OCF growth 3Y0.69%
OCF growth 5Y3.9%
PHILIP MORRIS INTERNATIONAL / PM FAQ
What is the fundamental rating for PM stock?
ChartMill assigns a fundamental rating of 5 / 10 to PM.
Can you provide the valuation status for PHILIP MORRIS INTERNATIONAL?
ChartMill assigns a valuation rating of 4 / 10 to PHILIP MORRIS INTERNATIONAL (PM). This can be considered as Fairly Valued.
What is the profitability of PM stock?
PHILIP MORRIS INTERNATIONAL (PM) has a profitability rating of 8 / 10.
Can you provide the financial health for PM stock?
The financial health rating of PHILIP MORRIS INTERNATIONAL (PM) is 2 / 10.
How sustainable is the dividend of PHILIP MORRIS INTERNATIONAL (PM) stock?
The dividend rating of PHILIP MORRIS INTERNATIONAL (PM) is 6 / 10 and the dividend payout ratio is 98.07%.