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PM

Philip Morris InternationalNYSE:PM Stock Report

Market Cap

US$136.0b

7D

-2.7%

1Y

15.3%

Updated

30 Nov, 2021

Data

Company Financials +
PM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health2/6
Dividends6/6

PM Stock Overview

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories.

Philip Morris International Competitors

Altria Group

NYSE:MO

US$79.9b

22nd Century Group

NasdaqCM:XXII

US$416.6m

Diageo

LSE:DGE

UK£86.9b

British American Tobacco

LSE:BATS

UK£58.2b

Price History & Performance

Summary of all time highs, changes and price drops for Philip Morris International
Historical stock prices
Current Share PriceUS$87.35
52 Week HighUS$106.51
52 Week LowUS$75.42
Beta0.86
1 Month Change-7.61%
3 Month Change-15.19%
1 Year Change15.31%
3 Year Change0.31%
5 Year Change-0.48%
Change since IPO76.86%

Recent News & Updates

Nov 19

Philip Morris: 5.5% Yield, Why I'm Buying The Dip

Philip Morris International is executing well, with manageable cigarette volume declines, and with overall volume growth. IQOS continues to ramp up well, and its next iteration provides a better user experience. Meanwhile, it maintains a stronger balance sheet than last year and pays a well-covered dividend.

Oct 19

Philip Morris: Strong Q3 Growth Despite Temporary Chip Shortage; Buy The 5%+ Dividend Yield

PM's Q3 2021 results today contained little surprise as management had already reiterated the full-year outlook in September. Q3 results were strong, with EPS growing 11.6% year-on-year; full-year outlook now implies organic EPS growth of 13-14%. Overall volume trends were up 0.6% excluding inventory, with Heated Tobacco Unit sales being a material positive in several regions. The global chip shortage contributed to a slowdown in IQOS user growth in Q3, but consumable volume still grew in Japan and the E.U. Philip Morris' stock at $97.43, we expect a total return of 45% (13.3% annualized) in just over 3 years. The Dividend Yield is 5.1%. Buy.

Oct 08

Philip Morris: Solid Income But Has Never Been Relatively More Expensive

Philip Morris has seen their share price rally throughout 2021 towards the triple-digit levels not seen since 2018. Whilst their 5% dividend yield still offers a solid income, their shares have never been relatively more expensive versus their closest peers. Their dividends growth is fast approaching its ceiling with the gap between their dividend payments and operating cash flow narrowing. Even under a bullish scenario with modest continued dividend growth, my Monte Carlo Simulations indicate that their shares are now fully priced. This means that there is limited potential upside to generate alpha and thus I believe that only a neutral rating is appropriate.

Sep 18
Philip Morris International's (NYSE:PM) Shareholders Will Receive A Bigger Dividend Than Last Year

Philip Morris International's (NYSE:PM) Shareholders Will Receive A Bigger Dividend Than Last Year

Philip Morris International Inc.'s ( NYSE:PM ) dividend will be increasing to US$1.25 on 14th of October. Even though...

Shareholder Returns

PMUS TobaccoUS Market
7D-2.7%1.1%-0.9%
1Y15.3%8.9%23.3%

Return vs Industry: PM exceeded the US Tobacco industry which returned 9.6% over the past year.

Return vs Market: PM underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is PM's price volatile compared to industry and market?
PM volatility
PM Average Weekly Movement2.9%
Tobacco Industry Average Movement13.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: PM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198771,000Jacek Olczakhttps://www.pmi.com

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories. The company offers IQOS smoke-free products, including heated tobacco and nicotine-containing vapor products under the HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro, HEETS FROM MARLBORO, Marlboro Dimensions, Marlboro HeatSticks, and Parliament HeatSticks brands, as well as under the Fiit and Miix licensed brands. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands.

Philip Morris International Fundamentals Summary

How do Philip Morris International's earnings and revenue compare to its market cap?
PM fundamental statistics
Market CapUS$135.99b
Earnings (TTM)US$8.97b
Revenue (TTM)US$30.75b

15.2x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PM income statement (TTM)
RevenueUS$30.75b
Cost of RevenueUS$9.80b
Gross ProfitUS$20.95b
ExpensesUS$11.98b
EarningsUS$8.97b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.76
Gross Margin68.14%
Net Profit Margin29.16%
Debt/Equity Ratio-336.2%

How did PM perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

84%

Payout Ratio

Valuation

Is Philip Morris International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PM ($87.35) is trading below our estimate of fair value ($218.8)

Significantly Below Fair Value: PM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PM is poor value based on its PE Ratio (15.2x) compared to the Global Tobacco industry average (13.8x).

PE vs Market: PM is good value based on its PE Ratio (15.2x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: PM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: PM has negative assets, so we can't compare its PB Ratio to the US Tobacco industry average.


Future Growth

How is Philip Morris International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PM's forecast earnings growth (6.5% per year) is above the savings rate (2%).

Earnings vs Market: PM's earnings (6.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: PM's earnings are forecast to grow, but not significantly.

Revenue vs Market: PM's revenue (3.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PM's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PM is forecast to be unprofitable in 3 years.


Past Performance

How has Philip Morris International performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PM has high quality earnings.

Growing Profit Margin: PM's current net profit margins (29.2%) are higher than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: PM's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: PM's earnings growth over the past year (16.8%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: PM earnings growth over the past year (16.8%) exceeded the Tobacco industry 5.8%.


Return on Equity

High ROE: PM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Philip Morris International's financial position?


Financial Position Analysis

Short Term Liabilities: PM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PM's debt is well covered by operating cash flow (38.2%).

Interest Coverage: PM's interest payments on its debt are well covered by EBIT (22.1x coverage).


Balance Sheet


Dividend

What is Philip Morris International current dividend yield, its reliability and sustainability?

5.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PM's dividend (5.72%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: PM's dividend (5.72%) is in the top 25% of dividend payers in the US market (3.58%)


Stability and Growth of Payments

Stable Dividend: PM's dividends per share have been stable in the past 10 years.

Growing Dividend: PM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), PM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PM's dividends in 3 years are forecast to be covered by earnings (75.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Jacek Olczak (56 yo)

0.50

Tenure

US$10,962,549

Compensation

Mr. Jacek Olczak is the Chief Executive Officer and Director of Philip Morris International Inc. since May 05, 2021. He had been the Chief Operating Officer of Philip Morris International Inc. since Januar...


CEO Compensation Analysis

Compensation vs Market: Jacek's total compensation ($USD10.96M) is about average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: Jacek's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: PM's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Philip Morris International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Philip Morris International Inc.
  • Ticker: PM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$135.989b
  • Shares outstanding: 1.56b
  • Website: https://www.pmi.com

Number of Employees


Location

  • Philip Morris International Inc.
  • 120 Park Avenue
  • New York
  • New York
  • 10017-5592
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:21
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.