PHILIP MORRIS INTERNATIONAL (PM) Stock Fundamental Analysis
USA - NYSE:PM - US7181721090 - Common Stock
166.11 USD
-1.79 (-1.07%)
166.5 USD
+0.39 (+0.23%)
PM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. While PM belongs to the best of the industry regarding profitability, there are concerns on its financial health. PM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years PM had a positive operating cash flow.
1.2 Ratios
PM has a Return On Assets of 11.98%. This is amongst the best in the industry. PM outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.29%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PM had an Average Return On Invested Capital over the past 3 years of 25.07%. This is significantly above the industry average of 14.45%.
The last Return On Invested Capital (26.29%) for PM is above the 3 year average (25.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROIC | 26.29% |
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's Profit Margin of 21.01% is fine compared to the rest of the industry. PM outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of PM has declined.
Looking at the Operating Margin, with a value of 37.78%, 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 Operating Margin of PM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 66.45%, PM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% |
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
PM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
The Debt to FCF ratio of PM is 5.72, which is a neutral value as it means it would take PM, 5.72 years of fcf income to pay off all of its debts.
PM's Debt to FCF ratio of 5.72 is in line compared to the rest of the industry. PM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC3.39
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.83 indicates that PM may have some problems paying its short term obligations.
The Current ratio of PM (0.83) is worse than 62.50% of its industry peers.
A Quick Ratio of 0.83 indicates that PM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, PM is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.36% over the past year.
Measured over the past 5 years, PM shows a small growth in Earnings Per Share. The EPS has been growing by 4.72% on average per year.
PM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
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 11.93% on average per year.
The Revenue is expected to grow by 8.73% on average over the next years. This is quite good.
EPS Next Y18.63%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
EPS Next 5Y11.93%
Revenue Next Year8.93%
Revenue Next 2Y8.66%
Revenue Next 3Y8.03%
Revenue Next 5Y8.73%
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
With a Price/Earnings ratio of 23.53, PM is valued on the expensive side.
Based on the Price/Earnings ratio, PM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
PM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 19.22, PM is valued on the expensive side.
PM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. PM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PM indicates a somewhat cheap valuation: PM is cheaper than 75.00% of the companies listed 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 | 28.76 | ||
| EV/EBITDA | 18.16 |
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 excellent profitability rating of PM may justify a higher PE ratio.
A more expensive valuation may be justified as PM's earnings are expected to grow with 13.09% in the coming years.
PEG (NY)1.26
PEG (5Y)4.98
EPS Next 2Y14.86%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
PM has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.68, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
101.82% 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.
DP101.82%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
166.11
-1.79 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners82.07%
Inst Owner Change-1.14%
Ins Owners0.14%
Ins Owner Change0.19%
Market Cap258.57B
Analysts81.48
Price Target190.07 (14.42%)
Short Float %0.71%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend5.28
Dividend Growth(5Y)2.76%
DP101.82%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.19%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.94%
Min EPS beat(4)-0.19%
Max EPS beat(4)1.78%
EPS beat(8)5
Avg EPS beat(8)-0.35%
EPS beat(12)8
Avg EPS beat(12)1.72%
EPS beat(16)10
Avg EPS beat(16)2.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.73%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-4.73%
Max Revenue beat(4)-0.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)0.38%
PT rev (3m)5.21%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)0.92%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)3.83%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 19.22 | ||
| P/S | 6.62 | ||
| P/FCF | 28.76 | ||
| P/OCF | 24.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.16 |
EPS(TTM)7.06
EY4.25%
EPS(NY)8.64
Fwd EY5.2%
FCF(TTM)5.77
FCFY3.48%
OCF(TTM)6.69
OCFY4.02%
SpS25.09
BVpS-7.69
TBVpS-26.07
PEG (NY)1.26
PEG (5Y)4.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.98% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 26.29% | ||
| ROICexc | 29.1% | ||
| ROICexgc | 111.1% | ||
| OM | 37.78% | ||
| PM (TTM) | 21.01% | ||
| GM | 66.46% | ||
| FCFM | 23.01% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.31% | ||
| Profit Quality | 109.54% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score6
WACC7.76%
ROIC/WACC3.39
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 Y18.63%
EPS Next 2Y14.86%
EPS Next 3Y13.09%
EPS Next 5Y11.93%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y6.45%
Revenue growth 5Y4.91%
Sales Q2Q%7.1%
Revenue Next Year8.93%
Revenue Next 2Y8.66%
Revenue Next 3Y8.03%
Revenue Next 5Y8.73%
EBIT growth 1Y8.02%
EBIT growth 3Y1.54%
EBIT growth 5Y3.93%
EBIT Next Year24.58%
EBIT Next 3Y14.17%
EBIT Next 5Y11.91%
FCF growth 1Y21.31%
FCF growth 3Y-1.34%
FCF growth 5Y3.12%
OCF growth 1Y20.33%
OCF growth 3Y0.69%
OCF growth 5Y3.9%