PHILIP MORRIS INTERNATIONAL (PM)
US7181721090 - Common Stock
PM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Tobacco industry. PM has an excellent profitability rating, but there are concerns on its financial health. PM is quite expensive at the moment. It does show a decent growth rate. PM also has an excellent dividend rating.
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.
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 12.16% is fine compared to the rest of the industry. PM outperforms 80.00% of its industry peers.
With a decent Return On Invested Capital value of 24.87%, PM is doing good in the industry, outperforming 80.00% 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 21.47%.
The 3 year average ROIC (32.26%) for PM is well above the current ROIC(24.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | N/A | ||
| ROIC | 24.87% |
ROA(3y)16.19%
ROA(5y)16.64%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.26%
ROIC(5y)34.1%
1.3 Margins
With a decent Profit Margin value of 22.10%, PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PM has declined.
PM has a better Operating Margin (37.94%) than 80.00% 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 63.74%. This is amongst the best in the industry. PM outperforms 90.00% of its industry peers.
PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.94% | ||
| PM (TTM) | 22.1% | ||
| GM | 63.74% |
OM growth 3Y-4.01%
OM growth 5Y-1.05%
PM growth 3Y-7.59%
PM growth 5Y-3.68%
GM growth 3Y-1.59%
GM growth 5Y-0.05%
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.
Compared to 5 years ago, PM has about the same amount of shares outstanding.
The debt/assets ratio for PM is higher compared to a year ago.
2.2 Solvency
PM has an Altman-Z score of 3.35. This indicates that PM is financially healthy and has little risk of bankruptcy at the moment.
PM has a Altman-Z score of 3.35. This is in the better half of the industry: PM outperforms 70.00% of its industry peers.
PM has a debt to FCF ratio of 5.64. This is a neutral value as PM would need 5.64 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.64, PM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 3.35 |
ROIC/WACC3.29
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.94 indicates that PM may have some problems paying its short term obligations.
PM's Current ratio of 0.94 is in line compared to the rest of the industry. PM outperforms 50.00% of its industry peers.
PM has a Quick Ratio of 0.94. 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 (0.49) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.73% over the past year.
PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.34% yearly.
Looking at the last year, PM shows a quite strong growth in Revenue. The Revenue has grown by 9.62% in the last year.
PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.54% yearly.
EPS 1Y (TTM)3.73%
EPS 3Y5.08%
EPS 5Y3.34%
EPS Q2Q%-0.63%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y7.1%
Revenue growth 5Y3.54%
Sales Q2Q%5.59%
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 8.40% on average per year.
Based on estimates for the next years, PM will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y8.1%
EPS Next 2Y8.84%
EPS Next 3Y9.15%
EPS Next 5Y8.4%
Revenue Next Year5.26%
Revenue Next 2Y5.93%
Revenue Next 3Y6.17%
Revenue Next 5Y5.63%
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.
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
Based on the Price/Earnings ratio of 18.52, the valuation of PM can be described as rather expensive.
Based on the Price/Earnings ratio, PM is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.41, PM is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.92, which indicates a correct valuation of PM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, PM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
PM's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.71 | ||
| EV/EBITDA | 14.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PM may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)5.55
EPS Next 2Y8.84%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, PM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.15, PM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, PM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.99%.
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)2.99%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
100.88% 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.
DP100.88%
EPS Next 2Y8.84%
EPS Next 3Y9.15%
PHILIP MORRIS INTERNATIONAL
NYSE:PM (7/26/2024, 7:04:00 PM)
After market: 113.46 +0.1 (+0.09%)113.36
+0.16 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap176.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 15.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.29
PEG (5Y)5.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.94% | ||
| PM (TTM) | 22.1% | ||
| GM | 63.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.73%
EPS 3Y5.08%
EPS 5Y
EPS Q2Q%
EPS Next Y8.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.62%
Revenue growth 3Y7.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y