Philip Morris International Inc. Fundamental Analysis (NYSE: PM)
Philip Morris International Inc. (NYSE: PM) shows moderate financial fundamentals with a PE ratio of 29.22, profit margin of 24.82%, and ROE of -1.20%. The company generates $43.0B 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 0.7/100 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
ExcellentPM maintains a strong and stable balance sheet.
Profitability Score
ModeratePM maintains healthy but balanced margins.
Key Financial Metrics
Is PM Expensive or Cheap?
P/E Ratio
PM trades at 29.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PM's PEG of 1.22 indicates fair valuation.
Price to Book
The market values Philip Morris International Inc. at -39.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.45 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 $24.82 as profit after all expenses.
Operating Margin
Core operations generate 38.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.20 in profit for every $100 of shareholder equity.
ROA
Philip Morris International Inc. generates $16.05 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 $15.11B, reflecting robust business health.
Free Cash Flow
Philip Morris International Inc. generates strong free cash flow of $13.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.70 in free cash annually.
FCF Yield
PM converts 4.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
-39.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.99
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.20
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How PM Stacks Against Its Sector Peers
| Metric | PM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.22 | 21.44 | Worse (Expensive) |
| ROE | -119.68% | 665.00% | Weak |
| Net Margin | 24.82% | -2330.00% (disorted) | Strong |
| Debt/Equity | -5.99 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 2.27 | Neutral |
| ROA | 16.05% | 308.00% | 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