PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PM - US7181721090 - Common Stock
173.62 USD
+1.06 (+0.61%)
173.5 USD
-0.12 (-0.07%)
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.
- In the past year PM had a positive cash flow from operations.
- Each year in the past 5 years PM has been profitable.
- Each year in the past 5 years PM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of PM (12.83%) is better than 87.50% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 28.03%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PM 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
- PM has a better Profit Margin (21.51%) than 87.50% of its industry peers.
- PM's Profit Margin has declined in the last couple of years.
- PM has a better Operating Margin (38.71%) than 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.
- PM has a Gross Margin of 66.93%. This is amongst the best in the industry. PM outperforms 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PM is creating value.
- Compared to 1 year ago, PM has about the same amount of shares outstanding.
- 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's Debt to FCF ratio of 4.95 is fine compared to the rest 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
- 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.
- The Current ratio of PM (0.85) is worse than 75.00% of its industry peers.
- PM has a Quick 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.
- The Quick ratio of PM (0.85) is worse than 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.
- PM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.45%.
- PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.91% yearly.
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 Y18.36%
EPS Next 2Y14.53%
EPS Next 3Y12.71%
EPS Next 5Y11.6%
Revenue Next Year8.29%
Revenue Next 2Y8%
Revenue Next 3Y7.52%
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.
- 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 23.49, which indicates a rather expensive current valuation of PM.
- The rest of the industry has a similar Price/Earnings ratio as PM.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, PM is valued at the same level.
- The Price/Forward Earnings ratio is 20.21, which indicates a rather expensive current valuation of PM.
- PM's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. PM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
- PM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PM is cheaper than 75.00% of the companies in the same industry.
- PM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 18.04 |
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.
- A more expensive valuation may be justified as PM's earnings are expected to grow with 12.71% in the coming years.
PEG (NY)1.28
PEG (5Y)4.97
EPS Next 2Y14.53%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
- PM has a Yearly Dividend Yield of 3.41%.
- PM's Dividend Yield is comparable with the industry average which is at 3.34.
- PM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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
- 98.07% of the earnings are spent on dividend by PM. This is not a sustainable payout ratio.
- PM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.07%
EPS Next 2Y14.53%
EPS Next 3Y12.71%
173.62
+1.06 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners82.83%
Inst Owner Change0.16%
Ins Owners0.14%
Ins Owner Change0%
Market Cap270.26B
Revenue(TTM)39.99B
Net Income(TTM)8.60B
Analysts82.31
Price Target184.73 (6.4%)
Short Float %1.13%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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)-0.03%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 20.21 | ||
| P/S | 6.76 | ||
| P/FCF | 26.7 | ||
| P/OCF | 23.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.04 |
EPS(TTM)7.39
EY4.26%
EPS(NY)8.59
Fwd EY4.95%
FCF(TTM)6.5
FCFY3.75%
OCF(TTM)7.4
OCFY4.26%
SpS25.69
BVpS-7.01
TBVpS-25.21
PEG (NY)1.28
PEG (5Y)4.97
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 Y18.36%
EPS Next 2Y14.53%
EPS Next 3Y12.71%
EPS Next 5Y11.6%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
Revenue Next Year8.29%
Revenue Next 2Y8%
Revenue Next 3Y7.52%
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%.