PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PM - US7181721090 - Common Stock
158.81 USD
+3.66 (+2.36%)
158.75 USD
-0.06 (-0.04%)
Overall PM gets a fundamental rating of 5 out of 10. We evaluated PM against 8 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.
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
PM has a Return On Assets of 12.83%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
The Return On Invested Capital of PM (28.03%) 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 14.25%.
The 3 year average ROIC (25.07%) for PM is below the current ROIC(28.03%), indicating increased profibility in the last year.
| 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's Operating Margin of 38.71% 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.
With an excellent Gross Margin value of 66.93%, 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 | 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.
PM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PM remains at a similar level compared to 5 years ago.
PM has a worse debt/assets ratio than last year.
2.2 Solvency
PM has a debt to FCF ratio of 4.95. This is a neutral value as PM would need 4.95 years to pay back of all of its debts.
The Debt to FCF ratio of PM (4.95) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | N/A |
ROIC/WACC3.46
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.85 indicates that PM may have some problems paying its short term obligations.
PM's Current ratio of 0.85 is on the low side compared to the rest of the industry. PM is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.85 indicates that PM may have some problems paying its short term obligations.
PM's Quick ratio of 0.85 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 | ||
|---|---|---|---|
| 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%.
Measured over the past years, PM shows a small growth in Revenue. The Revenue has been growing by 4.91% on average per year.
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
PM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.60% yearly.
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 Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
Revenue Next 5Y7.66%
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 21.49, the valuation of PM can be described as rather expensive.
PM's Price/Earnings ratio is in line with the industry average.
PM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 18.48 indicates a rather expensive 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.
When comparing the Price/Forward Earnings ratio of PM to the average of the S&P500 Index (23.70), we can say PM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as PM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.42 | ||
| EV/EBITDA | 16.71 |
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 12.73% in the coming years.
PEG (NY)1.17
PEG (5Y)4.55
EPS Next 2Y14.56%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 3.67%.
PM's Dividend Yield is comparable with the industry average which is at 3.44.
PM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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 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
98.07% 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.
DP98.07%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
158.81
+3.66 (+2.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners82.83%
Inst Owner Change0%
Ins Owners0.14%
Ins Owner Change0%
Market Cap247.21B
Revenue(TTM)39.99B
Net Income(TTM)8.60B
Analysts82.31
Price Target184.73 (16.32%)
Short Float %1.13%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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)-1.4%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.9%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.48 | ||
| P/S | 6.18 | ||
| P/FCF | 24.42 | ||
| P/OCF | 21.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)7.39
EY4.65%
EPS(NY)8.6
Fwd EY5.41%
FCF(TTM)6.5
FCFY4.09%
OCF(TTM)7.4
OCFY4.66%
SpS25.69
BVpS-7.01
TBVpS-25.21
PEG (NY)1.17
PEG (5Y)4.55
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
WACC8.09%
ROIC/WACC3.46
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 Y18.39%
EPS Next 2Y14.56%
EPS Next 3Y12.73%
EPS Next 5Y11.6%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%9.42%
Revenue Next Year8.27%
Revenue Next 2Y8.04%
Revenue Next 3Y7.55%
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%.