Philip Morris International Inc. Fundamental Analysis (NYSE: PM)
Philip Morris International Inc. (NYSE: PM) shows moderate financial fundamentals with a PE ratio of 27.90, profit margin of 25.56%, and ROE of -1.12%. The company generates $42.4B in annual revenue with moderate year-over-year growth of 7.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 4.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPM demonstrates superior asset utilization.
Valuation Score
ModeratePM shows balanced valuation metrics.
Growth Score
ExcellentPM delivers strong and consistent growth momentum.
Financial Health Score
ModeratePM shows balanced financial health with some risks.
Profitability Score
ModeratePM maintains healthy but balanced margins.
Key Financial Metrics
Is PM Expensive or Cheap?
P/E Ratio
PM trades at 27.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PM's PEG of 0.88 indicates potential undervaluation.
Price to Book
The market values Philip Morris International Inc. at -35.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.26 times EBITDA. This signals the market has high growth expectations.
How Well Does PM Make Money?
Net Profit Margin
For every $100 in sales, Philip Morris International Inc. keeps $25.56 as profit after all expenses.
Operating Margin
Core operations generate 37.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.12 in profit for every $100 of shareholder equity.
ROA
Philip Morris International Inc. generates $15.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Philip Morris International Inc. generates strong operating cash flow of $13.86B, reflecting robust business health.
Free Cash Flow
Philip Morris International Inc. generates strong free cash flow of $12.32B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.91 in free cash annually.
FCF Yield
PM converts 4.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
-35.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.12
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How PM Stacks Against Its Sector Peers
| Metric | PM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.90 | 19.57 | Worse (Expensive) |
| ROE | -112.19% | 675.00% | Weak |
| Net Margin | 25.56% | -3840.00% (disorted) | Strong |
| Debt/Equity | -5.72 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 2.39 | Weak Liquidity |
| ROA | 15.93% | 1251.00% | Weak |
PM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Philip Morris International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.75%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
40.95%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
24.75%
Industry Style: Defensive, Dividend, Low Volatility
High Growth