Philip Morris International
Market Cap
US$117.3b
Last Updated
2020/04/10 00:43 UTC
Data Sources
Company Financials +
Executive Summary
Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Philip Morris International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
PM
6.6%
US Tobacco
9.4%
US Market
1 Year Return
-12.2%
PM
-27.8%
US Tobacco
-6.8%
US Market
Return vs Industry: PM exceeded the US Tobacco industry which returned -27.8% over the past year.
Return vs Market: PM underperformed the US Market which returned -8.1% over the past year.
Shareholder returns
| PM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 6.6% | 9.4% |
| 30 Day | -5.6% | -0.6% | -3.9% |
| 90 Day | -13.9% | -20.7% | -16.5% |
| 1 Year | -6.5%-12.2% | -22.0%-27.8% | -4.8%-6.8% |
| 3 Year | -22.0%-33.4% | -33.7%-44.1% | 23.4%15.2% |
| 5 Year | 13.0%-11.6% | -0.3%-22.1% | 41.3%25.7% |
Price Volatility Vs. Market
How volatile is Philip Morris International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
It Might Be Better To Avoid Philip Morris International Inc.'s (NYSE:PM) Upcoming Dividend1 month ago | Simply Wall St
Investors Who Bought Philip Morris International (NYSE:PM) Shares Three Years Ago Are Now Down 25%1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Philip Morris International Inc. (NYSE:PM)Valuation
Is Philip Morris International undervalued compared to its fair value and its price relative to the market?
36.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PM ($75.34) is trading below our estimate of fair value ($118.56)
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 (16.3x) compared to the Tobacco industry average (11.3x).
PE vs Market: PM is poor value based on its PE Ratio (16.3x) compared to the US market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: PM is poor value based on its PEG Ratio (1.9x)
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.
Next Steps
Future Growth
How is Philip Morris International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PM's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).
Earnings vs Market: PM's earnings (8.8% per year) are forecast to grow slower than the US market (13.3% 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 (6.9% 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: Insufficient data to determine if PM's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Philip Morris International performed over the past 5 years?
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PM has high quality earnings.
Growing Profit Margin: PM's current net profit margins (24%) are lower than last year (26.6%).
Past Earnings Growth Analysis
Earnings Trend: PM's earnings have grown by 0.6% per year over the past 5 years.
Accelerating Growth: PM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PM had negative earnings growth (-9.2%) over the past year, making it difficult to compare to the Tobacco industry average (1.4%).
Return on Equity
High ROE: PM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
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 (32.6%).
Interest Coverage: PM's interest payments on its debt are well covered by EBIT (19.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Philip Morris International's current dividend yield, its reliability and sustainability?
6.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PM's dividend (6.21%) is higher than the bottom 25% of dividend payers in the US market (1.89%).
High Dividend: PM's dividend (6.21%) is in the top 25% of dividend payers in the US market (5.26%)
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: With its high payout ratio (100.2%), PM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PM's dividends in 3 years are forecast to be covered by earnings (81.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Andre Calantzopoulos (61yo)
6.92s
Tenure
US$22,125,060
Compensation
Mr. Andre Calantzopoulos has been the Global Chief Executive Officer of Philip Morris International Inc. since May 8, 2013. Mr. Calantzopoulos served as the Chief Operating Officer of Philip Morris Interna ...
CEO Compensation Analysis
Compensation vs Market: Andre's total compensation ($USD22.13M) is above average for companies of similar size in the US market ($USD11.77M).
Compensation vs Earnings: Andre's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Global CEO & Director | 6.92yrs | US$22.13m | 0.044% $51.6m | |
| Chief Financial Officer | 2.25yrs | US$6.61m | 0.0092% $10.8m | |
| Chief Operating Officer | 2.25yrs | US$12.06m | 0.015% $17.1m | |
| President of External Affairs & General Counsel | 7.83yrs | US$7.37m | 0.011% $12.4m | |
| Chief New Ventures Officer | 2.25yrs | US$8.12m | 0.014% $16.6m | |
| Vice President of Treasury & Corporate Finance | no data | no data | 0.00086% $1.0m | |
| Chief Technology Officer | 1.17yrs | no data | no data | |
| Chief Information Officer | no data | no data | no data | |
| Chief Science Officer | no data | no data | no data | |
| Vice President of Investor Relations and Financial Communications | no data | no data | no data |
2.3yrs
Average Tenure
54.5yo
Average Age
Experienced Management: PM's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Global CEO & Director | 6.92yrs | US$22.13m | 0.044% $51.6m | |
| Non-Executive Chairman | 5.33yrs | US$700.00k | 0.023% $26.8m | |
| Independent Director | 12.25yrs | US$300.00k | 0.0015% $1.8m | |
| Independent Presiding Director | no data | US$325.00k | 0.0025% $3.0m | |
| Independent Director | 5.58yrs | US$335.00k | 0.00022% $258.1k | |
| Independent Director | 8.33yrs | US$335.00k | 0.0011% $1.2m | |
| Independent Director | 5.25yrs | US$335.00k | 0.0042% $4.9m | |
| Independent Director | 8.58yrs | US$300.00k | 0.0011% $1.3m | |
| Independent Director | 5.58yrs | no data | no data | |
| Independent Director | 9.92yrs | US$335.00k | 0.0043% $5.0m |
6.9yrs
Average Tenure
65yo
Average Age
Experienced Board: PM's board of directors are considered experienced (6.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PM insiders have only sold shares 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 company bio, 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$117.312b
- 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
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 4I1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2008 |
| PMI | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Mar 2008 |
| PM | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Mar 2008 |
| 4I1 | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Mar 2008 |
| 0M8V | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Mar 2008 |
| PMIZ | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | CHF | Mar 2008 |
| PHMO-U | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Mar 2008 |
| PMOR | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Mar 2008 |
| PM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Mar 2008 |
Biography
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 Marlboro, and HEETS FROM MARLBORO brands, as well as the Marlboro HeatSticks and Parliament HeatSticks brands. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands. In addition, the company owns various cigarette brands, such as Dji Sam Soe, Sampoerna A, and Sampoerna U in Indonesia; and Fortune and Jackpot in the Philippines. It markets and sells its products in the European Union, Eastern Europe, the Middle East, Africa, South and Southeast Asia, East Asia, Australia, Latin America, and Canada. Philip Morris International Inc. was incorporated in 1987 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/10 00:43 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.