PHILIP MORRIS INTERNATIONAL (PM)

US7181721090 - Common Stock

90.42  -1.14 (-1.25%)

After market: 90.25 -0.17 (-0.19%)

Fundamental Rating

5

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 not valued too expensively and it also shows a decent growth rate. PM also has an excellent dividend rating.



7

1. Profitability

1.1 Basic Checks

In the past year PM was profitable.
In the past year PM had a positive cash flow from operations.
In the past 5 years PM has always been profitable.
PM had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

PM's Return On Assets of 11.93% is fine compared to the rest of the industry. PM outperforms 80.00% of its industry peers.
PM has a Return On Invested Capital of 25.80%. This is in the better half of the industry: PM outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PM is significantly above the industry average of 22.07%.
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 RankSector 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

PM has a Profit Margin of 22.10%. This is in the better half of the industry: PM outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of PM has declined.
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.
With an excellent Gross Margin value of 63.52%, PM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
PM's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PM is creating value.
The number of shares outstanding for PM remains at a similar level compared to 1 year ago.
PM has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for PM is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.92 indicates that PM is not a great score, but indicates only limited risk for bankruptcy at the moment.
PM's Altman-Z score of 2.92 is fine compared to the rest of the industry. PM outperforms 80.00% of its industry peers.
The Debt to FCF ratio of PM is 6.08, which is on the high side as it means it would take PM, 6.08 years of fcf income to pay off all of its debts.
PM's Debt to FCF ratio of 6.08 is fine compared to the rest of the industry. PM outperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 6.08
Altman-Z 2.92
ROIC/WACC3.54
WACC7.29%

2.3 Liquidity

PM has a Current Ratio of 0.75. 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 (0.75) is worse than 70.00% of its industry peers.
A Quick Ratio of 0.34 indicates that PM may have some problems paying its short term obligations.
PM has a Quick ratio of 0.34. This is amonst the worse of the industry: PM underperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.34

5

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%.
PM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.34% yearly.
The Revenue has grown by 10.99% in the past year. This is quite good.
PM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.54% yearly.
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

PM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.00% yearly.
Based on estimates for the next years, PM will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y12.19%
EPS Next 2Y11.22%
EPS Next 3Y8.95%
EPS Next 5Y9%
Revenue Next Year6.07%
Revenue Next 2Y6.05%
Revenue Next 3Y5.16%
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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.04 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 (25.81), we can say PM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.41, the valuation of PM can be described as correct.
PM's Price/Forward Earnings ratio is in line with the industry average.
PM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.04
Fwd PE 13.41

4.2 Price Multiples

PM's Enterprise Value to EBITDA ratio is in line with the industry average.
PM's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 17.81
EV/EBITDA 12.44

4.3 Compensation for Growth

The 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)1.23
PEG (5Y)4.51
EPS Next 2Y11.22%
EPS Next 3Y8.95%

7

5. Dividend

5.1 Amount

PM has a Yearly Dividend Yield of 5.70%, which is a nice return.
Compared to an average industry Dividend Yield of 5.77, PM has a dividend in line with its industry peers.
PM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 5.7%

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 Years14
Div Non Decr Years14

5.3 Sustainability

PM pays out 102.22% of its income as dividend. 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 2Y11.22%
EPS Next 3Y8.95%

PHILIP MORRIS INTERNATIONAL

NYSE:PM (2/26/2024, 7:04:00 PM)

After market: 90.25 -0.17 (-0.19%)

90.42

-1.14 (-1.25%)

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 Cap140.37B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 15.04
Fwd PE 13.41
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)1.23
PEG (5Y)4.51
Profitability
Industry RankSector 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 RankSector 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 Y12.19%
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