PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
NYSE:PM - US7181721090 - Common Stock
171.75 USD
-2.74 (-1.57%)
171.51 USD
-0.24 (-0.14%)
PM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
In the past year PM had a positive cash flow from operations.
PM had positive earnings in each of the past 5 years.
In the past 5 years PM always reported a positive cash flow from operatings.
1.2 Ratios
PM's Return On Assets of 11.98% is amongst the best of the industry. PM outperforms 87.50% of its industry peers.
The Return On Invested Capital of PM (26.29%) 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 14.45%.
The 3 year average ROIC (25.07%) for PM is below the current ROIC(26.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROIC | 26.29% |
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 (21.01%) is better than 75.00% of its industry peers.
PM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.78%, 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 Operating Margin of PM has remained more or less at the same level.
With an excellent Gross Margin value of 66.45%, 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% |
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.
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
The Debt to FCF ratio of PM is 5.72, which is a neutral value as it means it would take PM, 5.72 years of fcf income to pay off all of its debts.
PM's Debt to FCF ratio of 5.72 is on the low side compared to the rest of the industry. PM is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC3.31
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PM may have some problems paying its short term obligations.
PM has a worse Current ratio (0.83) than 62.50% of its industry peers.
A Quick Ratio of 0.83 indicates that PM may have some problems paying its short term obligations.
The Quick ratio of PM (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
PM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.36%, 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.
Looking at the last year, PM shows a small growth in Revenue. The Revenue has grown by 7.16% in the last 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)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
3.2 Future
The Earnings Per Share is expected to grow by 11.27% on average over the next years. This is quite good.
PM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.20% yearly.
EPS Next Y18.63%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
EPS Next 5Y11.27%
Revenue Next Year8.99%
Revenue Next 2Y8.69%
Revenue Next 3Y8.03%
Revenue Next 5Y9.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PM is valuated rather expensively with a Price/Earnings ratio of 24.33.
PM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PM to the average of the S&P500 Index (27.24), we can say PM is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.88, PM is valued on the expensive side.
PM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.81. PM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
62.50% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.74 | ||
| EV/EBITDA | 18.69 |
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 13.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)5.15
EPS Next 2Y14.86%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, PM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.56, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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 Years16
Div Non Decr Years16
5.3 Sustainability
101.82% 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.
DP101.82%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
171.75
-2.74 (-1.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners82.07%
Inst Owner Change-1.14%
Ins Owners0.14%
Ins Owner Change0.12%
Market Cap267.34B
Analysts80.77
Price Target189.49 (10.33%)
Short Float %0.75%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP101.82%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.19%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-0.19%
Max EPS beat(4)1.78%
EPS beat(8)5
Avg EPS beat(8)-0.35%
EPS beat(12)8
Avg EPS beat(12)1.72%
EPS beat(16)10
Avg EPS beat(16)2.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)0.55%
PT rev (3m)6.72%
EPS NQ rev (1m)-3.69%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)0.92%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)3.76%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 19.88 | ||
| P/S | 6.84 | ||
| P/FCF | 29.74 | ||
| P/OCF | 25.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.69 |
EPS(TTM)7.06
EY4.11%
EPS(NY)8.64
Fwd EY5.03%
FCF(TTM)5.77
FCFY3.36%
OCF(TTM)6.69
OCFY3.89%
SpS25.09
BVpS-7.69
TBVpS-26.07
PEG (NY)1.31
PEG (5Y)5.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 26.29% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 111.1% | ||
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% | ||
| FCFM | 23.01% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.31% | ||
| Profit Quality | 109.54% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score6
WACC7.95%
ROIC/WACC3.31
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)15.36%
EPS 3Y2.57%
EPS 5Y4.72%
EPS Q2Q%20.13%
EPS Next Y18.63%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
EPS Next 5Y11.27%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
Revenue Next Year8.99%
Revenue Next 2Y8.69%
Revenue Next 3Y8.03%
Revenue Next 5Y9.2%
EBIT growth 1Y8.02%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.58%
EBIT Next 3Y14.17%
EBIT Next 5Y11.91%
FCF growth 1Y21.31%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y20.33%
OCF growth 3Y0.69%
OCF growth 5Y3.9%