PHILIP MORRIS INTERNATIONAL (PM)
US7181721090 - Common Stock
We assign a fundamental rating of 5 out of 10 to PM. PM was compared to 10 industry peers in the Tobacco industry. PM scores excellent on profitability, but there are concerns on its financial health. PM has a correct valuation and a medium growth rate. PM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PM was profitable.
PM had a positive operating cash flow in the past year.
PM had positive earnings in each of the past 5 years.
PM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.93%, PM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 25.80%, PM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PM is significantly above the industry average of 21.15%.
The last Return On Invested Capital (25.80%) for PM is well below the 3 year average (32.26%), which needs to be investigated, but indicates that PM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | N/A | ||
| ROIC | 25.8% |
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
The Profit Margin of PM (22.10%) is better than 80.00% of its industry peers.
PM's Profit Margin has declined in the last couple of years.
PM has a Operating Margin of 37.80%. This is in the better half of the industry: PM outperforms 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.
The Gross Margin of PM (63.52%) is better than 90.00% of its industry peers.
PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.8% | ||
| PM (TTM) | 22.1% | ||
| GM | 63.52% |
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
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.
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
PM has an Altman-Z score of 2.97. This is not the best score and indicates that PM is in the grey zone with still only limited risk for bankruptcy at the moment.
PM's Altman-Z score of 2.97 is fine compared to the rest of the industry. PM outperforms 70.00% of its industry peers.
PM has a debt to FCF ratio of 6.08. This is a slightly negative value and a sign of low solvency as PM would need 6.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.08, PM is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 2.97 |
ROIC/WACC3.37
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.75 indicates that PM may have some problems paying its short term obligations.
With a Current ratio value of 0.75, PM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that PM may have some problems paying its short term obligations.
PM has a worse Quick ratio (0.34) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
PM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.84%.
Measured over the past 5 years, PM shows a small growth in Earnings Per Share. The EPS has been growing by 3.34% on average per year.
The Revenue has grown by 10.99% in the past year. This is quite good.
Measured over the past years, PM shows a small growth in Revenue. The Revenue has been growing by 3.54% on average per year.
EPS 1Y (TTM)0.84%
EPS 3Y5.08%
EPS 5Y3.34%
EPS growth Q2Q-2.16%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y7.1%
Revenue growth 5Y3.54%
Revenue growth Q2Q10.98%
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 9.00% on average per year.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y9.71%
EPS Next 2Y9.76%
EPS Next 3Y10.09%
EPS Next 5Y9%
Revenue Next Year6.08%
Revenue Next 2Y6.26%
Revenue Next 3Y6.47%
Revenue Next 5Y5.53%
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
A Price/Earnings ratio of 16.25 indicates a correct valuation of PM.
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 (25.20), we can say PM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.81, the valuation of PM can be described as correct.
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 21.60, PM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.81 |
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 | 19.26 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
PM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PM may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)4.87
EPS Next 2Y9.76%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.70%, PM is a good candidate for dividend investing.
PM's Dividend Yield is comparable with the industry average which is at 5.89.
PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
The dividend of PM has a limited annual growth rate of 2.99%.
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)2.99%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
102.22% 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.
DP102.22%
EPS Next 2Y9.76%
EPS Next 3Y10.09%
PHILIP MORRIS INTERNATIONAL
NYSE:PM (4/23/2024, 7:19:39 PM)
After market: 97.65 -0.01 (-0.01%)97.66
+3.6 (+3.83%)
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 Cap151.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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 | 16.25 | ||
| Fwd PE | 14.81 | ||
| 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)1.67
PEG (5Y)4.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.8% | ||
| PM (TTM) | 22.1% | ||
| GM | 63.52% | ||
| 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 Turnover0.54
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 | 0.75 | ||
| Quick Ratio | 0.34 | ||
| 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)
Growth
EPS 1Y (TTM)0.84%
EPS 3Y5.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.99%
Revenue growth 3Y7.1%
Revenue growth 5Y
Revenue growth 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