PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
NYSE:PM - New York Stock Exchange, Inc. - US7181721090 - Common Stock - Currency: USD
Overall PM gets a fundamental rating of 5 out of 10. We evaluated PM against 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.
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
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.
PM has a better Return On Invested Capital (25.67%) than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PM is significantly above the industry average of 14.16%.
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
PM has a Profit Margin of 19.73%. This is in the better half of the industry: PM outperforms 75.00% of its industry peers.
PM's Profit Margin has declined in the last couple of years.
PM's Operating Margin of 36.24% is amongst the best of 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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PM is creating value.
PM has about the same amout of shares outstanding than it did 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
PM has an Altman-Z score of 3.91. This indicates that PM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.91, PM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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 (4.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 3.91 |
ROIC/WACC3.26
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.79 indicates that PM may have some problems paying its short term obligations.
The Current ratio of PM (0.79) is comparable to the rest of the industry.
A Quick Ratio of 0.43 indicates that PM may have some problems paying its short term obligations.
With a Quick ratio value of 0.43, PM is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.43 |
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
Based on estimates for the next years, PM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.07% on average per year.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y17.55%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
EPS Next 5Y11.07%
Revenue Next Year9.12%
Revenue Next 2Y8.77%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
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.
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
The Price/Earnings ratio is 23.08, which indicates a rather expensive current valuation of PM.
Based on the Price/Earnings ratio, PM is valued a bit more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of PM to the average of the S&P500 Index (26.82), we can say PM is valued inline with the index average.
PM is valuated rather expensively with a Price/Forward Earnings ratio of 19.00.
The rest of the industry has a similar Price/Forward Earnings ratio as PM.
The average S&P500 Price/Forward Earnings ratio is at 36.21. PM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PM is valued a bit cheaper than 62.50% of the companies 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 | 24.88 | ||
| EV/EBITDA | 18.62 |
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 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)4.89
EPS Next 2Y14.43%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.77, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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 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
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 2Y14.43%
EPS Next 3Y12.97%
162.96
-1.09 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners81.41%
Inst Owner Change0.37%
Ins Owners0.14%
Ins Owner Change3.41%
Market Cap253.66B
Analysts80
Price Target188.46 (15.65%)
Short Float %0.75%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP109.27%
Div Incr Years16
Div Non Decr Years16
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)2.95%
PT rev (3m)18.42%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)3.52%
EPS NY rev (1m)0.18%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 19 | ||
| P/S | 6.61 | ||
| P/FCF | 24.88 | ||
| P/OCF | 21.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.62 |
EPS(TTM)7.06
EY4.33%
EPS(NY)8.58
Fwd EY5.26%
FCF(TTM)6.55
FCFY4.02%
OCF(TTM)7.47
OCFY4.58%
SpS24.66
BVpS-7
TBVpS-25.13
PEG (NY)1.32
PEG (5Y)4.89
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 | 3.91 |
F-Score6
WACC7.88%
ROIC/WACC3.26
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 Y17.55%
EPS Next 2Y14.43%
EPS Next 3Y12.97%
EPS Next 5Y11.07%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
Revenue Next Year9.12%
Revenue Next 2Y8.77%
Revenue Next 3Y7.96%
Revenue Next 5Y9%
EBIT growth 1Y1.21%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.13%
EBIT Next 3Y13.89%
EBIT Next 5Y11.71%
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%