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 some minor concerns on its financial health. PM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PM had positive earnings in the past year.
In the past year PM had a positive cash flow from operations.
In the past 5 years PM has always been profitable.
In the past 5 years PM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PM (11.64%) is better than 87.50% of its industry peers.
PM's Return On Invested Capital of 25.67% is amongst the best of the industry. PM outperforms 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PM 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 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
The Profit Margin of PM (19.73%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of PM has declined.
PM has a better Operating Margin (36.24%) than 87.50% of its industry peers.
PM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 65.68%, 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PM is creating value.
PM has about the same amout of shares outstanding than it did 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 4.05 indicates that PM is not in any danger for bankruptcy at the moment.
PM has a better Altman-Z score (4.05) than 62.50% 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 of 4.86. 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 | 4.86 | ||
| Altman-Z | 4.05 |
ROIC/WACC3.15
WACC8.15%
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 of 0.79. This is in the lower half of the industry: PM underperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.95% over the past year.
The Earnings Per Share has been growing slightly by 4.72% on average over the past years.
The Revenue has been growing slightly by 6.78% in the past year.
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
The Earnings Per Share is expected to grow by 10.38% on average over the next years. This is quite good.
Based on estimates for the next years, PM will show a small growth in Revenue. The Revenue will grow by 7.64% on average per year.
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
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
The Price/Earnings ratio is 25.91, which means the current valuation is very expensive for PM.
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.
PM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
PM is valuated rather expensively with a Price/Forward Earnings ratio of 20.42.
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 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PM.
The rest of the industry has a similar Price/Free Cash Flow ratio as PM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.66 | ||
| EV/EBITDA | 19.71 |
4.3 Compensation for Growth
The 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 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)5.48
EPS Next 2Y14.26%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 3.19%.
PM's Dividend Yield is a higher than the industry average which is at 4.07.
PM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.76%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
PM pays out 109.27% 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.
DP109.27%
EPS Next 2Y14.26%
EPS Next 3Y12.8%
174.64
+0.52 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners80.71%
Inst Owner Change1.75%
Ins Owners0.13%
Ins Owner Change3.46%
Market Cap271.83B
Analysts81.67
Price Target177.56 (1.67%)
Short Float %0.9%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years15
Div Non Decr Years15
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 20.42 | ||
| P/S | 7.08 | ||
| P/FCF | 26.66 | ||
| P/OCF | 23.38 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.71 |
EPS(TTM)6.74
EY3.86%
EPS(NY)8.55
Fwd EY4.9%
FCF(TTM)6.55
FCFY3.75%
OCF(TTM)7.47
OCFY4.28%
SpS24.66
BVpS-7
TBVpS-25.13
PEG (NY)1.48
PEG (5Y)5.48
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 | 4.05 |
F-Score6
WACC8.15%
ROIC/WACC3.15
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%