PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PM - US7181721090 - Common Stock
151.06 USD
-4.18 (-2.69%)
151.06 USD
0 (0%)
Overall PM gets a fundamental rating of 5 out of 10. We evaluated PM against 8 industry peers in the Tobacco industry. While PM has a great profitability rating, there are quite some 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.
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
PM has a Return On Assets of 12.83%. This is amongst the best in the industry. PM outperforms 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 14.16%.
The 3 year average ROIC (25.07%) for PM is below the current ROIC(28.03%), indicating increased profibility in the last year.
| 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 is in the better half of 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 has a Operating Margin of 38.71%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
PM's Operating Margin has been stable in the last couple of years.
PM has a better Gross Margin (66.93%) than 87.50% of its industry peers.
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.
The number of shares outstanding for PM remains at a similar level compared to 5 years ago.
The debt/assets ratio for PM is higher compared to a year ago.
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 better Debt to FCF ratio (4.95) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.34
WACC8.39%
2.3 Liquidity
PM has a Current Ratio of 0.85. This is a bad value and indicates that PM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, PM is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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
PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.19%, which is quite good.
The Earnings Per Share has been growing slightly by 4.72% on average over the past years.
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
Based on estimates for the next years, PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.60% on average per year.
Based on estimates for the next years, PM will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y18.5%
EPS Next 2Y14.66%
EPS Next 3Y12.85%
EPS Next 5Y11.6%
Revenue Next Year8.25%
Revenue Next 2Y7.96%
Revenue Next 3Y7.49%
Revenue Next 5Y7.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.44 indicates a rather expensive valuation of PM.
62.50% of the companies in the same industry are more expensive than PM, based on the Price/Earnings ratio.
PM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.65.
PM is valuated rather expensively with a Price/Forward Earnings ratio of 17.54.
PM's Price/Forward Earnings is on the same level as the industry average.
PM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than PM, based on the Enterprise Value to EBITDA ratio.
PM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.23 | ||
| EV/EBITDA | 16.4 |
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.
A more expensive valuation may be justified as PM's earnings are expected to grow with 12.85% in the coming years.
PEG (NY)1.1
PEG (5Y)4.33
EPS Next 2Y14.66%
EPS Next 3Y12.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.62, PM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 Years16
Div Non Decr Years16
5.3 Sustainability
98.07% 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.
DP98.07%
EPS Next 2Y14.66%
EPS Next 3Y12.85%
151.06
-4.18 (-2.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner Change1.91%
Ins Owners0.14%
Ins Owner Change0%
Market Cap235.15B
Revenue(TTM)39.99B
Net Income(TTM)8.60B
Analysts82.31
Price Target187.34 (24.02%)
Short Float %1.04%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP98.07%
Div Incr Years16
Div Non Decr Years16
Ex-Date
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)-1.43%
PT rev (3m)-1.06%
EPS NQ rev (1m)-5.79%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-3.2%
Revenue NQ rev (3m)-3.99%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 17.54 | ||
| P/S | 5.88 | ||
| P/FCF | 23.23 | ||
| P/OCF | 20.4 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.4 |
EPS(TTM)7.39
EY4.89%
EPS(NY)8.61
Fwd EY5.7%
FCF(TTM)6.5
FCFY4.3%
OCF(TTM)7.4
OCFY4.9%
SpS25.69
BVpS-7.01
TBVpS-25.21
PEG (NY)1.1
PEG (5Y)4.33
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
WACC8.39%
ROIC/WACC3.34
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 Y18.5%
EPS Next 2Y14.66%
EPS Next 3Y12.85%
EPS Next 5Y11.6%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
Revenue Next Year8.25%
Revenue Next 2Y7.96%
Revenue Next 3Y7.49%
Revenue Next 5Y7.66%
EBIT growth 1Y11.17%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year23.23%
EBIT Next 3Y13.83%
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.
What is the valuation status for PM stock?
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.
What is the earnings growth outlook for PHILIP MORRIS INTERNATIONAL?
The Earnings per Share (EPS) of PHILIP MORRIS INTERNATIONAL (PM) is expected to grow by 18.5% in the next year.
Can you provide the dividend sustainability for PM stock?
The dividend rating of PHILIP MORRIS INTERNATIONAL (PM) is 6 / 10 and the dividend payout ratio is 98.07%.