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Philip Morris International

NYSE:PM
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PM
NYSE
$138B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, and smoke-free products and related electronic devices and accessories. The last earnings update was 3 days ago. More info.


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PM Share Price and Events
7 Day Returns
8.4%
NYSE:PM
2%
US Tobacco
-1.2%
US Market
1 Year Returns
5.2%
NYSE:PM
-11.8%
US Tobacco
3.4%
US Market
PM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Philip Morris International (PM) 8.4% 12% 5.3% 5.2% -11.1% 4.6%
US Tobacco 2% 1.3% -6.4% -11.8% -25.5% 20.6%
US Market -1.2% 1.2% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • PM outperformed the Tobacco industry which returned -11.8% over the past year.
  • PM outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
PM
Industry
5yr Volatility vs Market

PM Value

 Is Philip Morris International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Philip Morris International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Philip Morris International.

NYSE:PM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.345 (1 + (1- 21%) (21.65%))
0.601
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:PM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Philip Morris International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 8,579.50 Analyst x6 7,981.08
2021 9,124.00 Analyst x3 7,895.59
2022 9,591.86 Est @ 5.13% 7,721.50
2023 10,014.71 Est @ 4.41% 7,499.58
2024 10,405.78 Est @ 3.9% 7,248.91
2025 10,775.44 Est @ 3.55% 6,982.85
2026 11,131.64 Est @ 3.31% 6,710.53
2027 11,480.39 Est @ 3.13% 6,438.04
2028 11,826.20 Est @ 3.01% 6,169.38
2029 12,172.40 Est @ 2.93% 5,907.08
Present value of next 10 years cash flows $70,554.52
NYSE:PM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $12,172.40 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$262,263.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $262,263.22 ÷ (1 + 7.5%)10
$127,272.20
NYSE:PM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $70,554.52 + $127,272.20
$197,826.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $197,826.72 / 1,555.80
$127.15
NYSE:PM Discount to Share Price
Calculation Result
Value per share (USD) From above. $127.15
Current discount Discount to share price of $88.73
= -1 x ($88.73 - $127.15) / $127.15
30.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Philip Morris International is available for.
Intrinsic value
30%
Share price is $88.73 vs Future cash flow value of $127.15
Current Discount Checks
For Philip Morris International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Philip Morris International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Philip Morris International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Philip Morris International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Philip Morris International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $5.02
NYSE:PM Share Price ** NYSE (2019-07-19) in USD $88.73
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 13.88x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Philip Morris International.

NYSE:PM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PM Share Price ÷ EPS (both in USD)

= 88.73 ÷ 5.02

17.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Philip Morris International is overvalued based on earnings compared to the Global Tobacco industry average.
  • Philip Morris International is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Philip Morris International's expected growth come at a high price?
Raw Data
NYSE:PM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
7.2%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.61x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:PM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.67x ÷ 7.2%

2.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Philip Morris International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Philip Morris International's assets?
Raw Data
NYSE:PM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $-7.20
NYSE:PM Share Price * NYSE (2019-07-19) in USD $88.73
United States of America Tobacco Industry PB Ratio Median Figure of 8 Publicly-Listed Tobacco Companies 5.08x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:PM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PM Share Price ÷ Book Value per Share (both in USD)

= 88.73 ÷ -7.20

-12.33x

* Primary Listing of Philip Morris International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Philip Morris International has negative assets, we can't compare the value of its assets to the US Tobacco industry average.
X
Value checks
We assess Philip Morris International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Philip Morris International has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PM Future Performance

 How is Philip Morris International expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Philip Morris International expected to grow at an attractive rate?
  • Philip Morris International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Philip Morris International's earnings growth is positive but not above the United States of America market average.
  • Philip Morris International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 7.2%
NYSE:PM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.9%
United States of America Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 34,837 11,593 10,557 3
2022-12-31 33,314 11,173 9,919 3
2021-12-31 32,649 10,282 9,338 11
2020-12-31 31,317 9,541 8,665 18
2019-12-31 29,878 8,941 7,806 16
NYSE:PM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 29,453 7,814
2019-03-31 29,480 9,339 7,692
2018-12-31 29,625 9,478 7,895
2018-09-30 30,420 9,977 6,680
2018-06-30 30,389 10,214 6,404
2018-03-31 29,580 9,449 5,987
2017-12-31 28,748 8,912 6,021
2017-09-30 27,425 8,140 7,036
2017-06-30 26,934 9,312 7,002
2017-03-31 26,666 8,458 7,010
2016-12-31 26,685 8,077 6,948
2016-09-30 26,106 7,800 6,486

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Philip Morris International's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Philip Morris International's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Philip Morris International Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 7.06 7.89 6.32 3.00
2022-12-31 6.56 7.22 5.98 3.00
2021-12-31 6.05 6.47 5.58 8.00
2020-12-31 5.61 5.89 5.32 13.00
2019-12-31 5.07 5.28 4.95 9.00
NYSE:PM Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 5.02
2019-03-31 4.95
2018-12-31 5.08
2018-09-30 4.30
2018-06-30 4.12
2018-03-31 3.86
2017-12-31 3.88
2017-09-30 4.53
2017-06-30 4.51
2017-03-31 4.52
2016-12-31 4.48
2016-09-30 4.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Philip Morris International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Philip Morris International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Philip Morris International has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PM Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Philip Morris International's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Philip Morris International's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Philip Morris International's 1-year earnings growth exceeds its 5-year average (22% vs -1.3%)
  • Philip Morris International's earnings growth has not exceeded the Global Tobacco industry average in the past year (22% vs 24.7%).
Earnings and Revenue History
Philip Morris International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Philip Morris International Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 29,453.00 7,814.00 7,782.00
2019-03-31 29,480.00 7,692.00 7,828.00
2018-12-31 29,625.00 7,895.00 7,449.00
2018-09-30 30,420.00 6,680.00 7,382.00
2018-06-30 30,389.00 6,404.00 7,314.00
2018-03-31 29,580.00 5,987.00 7,095.00
2017-12-31 28,748.00 6,021.00 6,725.00
2017-09-30 27,425.00 7,036.00 6,615.00
2017-06-30 26,934.00 7,002.00 6,520.00
2017-03-31 26,666.00 7,010.00 6,378.00
2016-12-31 26,685.00 6,948.00 6,405.00
2016-09-30 26,106.00 6,486.00 6,591.00
2016-06-30 26,051.00 6,489.00 6,603.00
2016-03-31 26,261.00 6,586.00 6,658.00
2015-12-31 26,794.00 6,849.00 6,656.00
2015-09-30 27,599.00 7,209.00 6,603.00
2015-06-30 28,528.00 7,419.00 6,800.00
2015-03-31 29,466.00 7,381.00 6,948.00
2014-12-31 29,767.00 7,459.00 7,001.00
2014-09-30 30,359.00 7,831.00 6,702.00
2014-06-30 30,430.00 8,014.00 6,626.00
2014-03-31 30,550.00 8,283.00 6,760.00
2013-12-31 31,217.00 8,531.00 6,890.00
2013-09-30 31,317.00 8,637.00 7,132.00
2013-06-30 31,310.00 8,524.00 7,100.00
2013-03-31 31,513.00 8,717.00 7,067.00
2012-12-31 31,377.00 8,752.00 6,961.00
2012-09-30 31,159.00 8,544.00 7,012.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Philip Morris International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Philip Morris International used its assets more efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Philip Morris International has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Philip Morris International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Philip Morris International has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PM Health

 How is Philip Morris International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Philip Morris International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Philip Morris International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Philip Morris International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Philip Morris International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Philip Morris International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Philip Morris International Company Filings, last reported 3 weeks ago.

NYSE:PM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 -9,409.00 29,889.00 4,008.00
2019-03-31 -10,185.00 30,264.00 3,081.00
2018-12-31 -10,739.00 31,759.00 6,593.00
2018-09-30 -9,942.00 31,766.00 5,880.00
2018-06-30 -10,168.00 31,665.00 6,587.00
2018-03-31 -10,482.00 34,848.00 7,200.00
2017-12-31 -10,230.00 34,339.00 8,447.00
2017-09-30 -9,633.00 33,975.00 7,667.00
2017-06-30 -10,277.00 31,747.00 6,197.00
2017-03-31 -10,557.00 31,346.00 5,076.00
2016-12-31 -10,900.00 29,067.00 4,239.00
2016-09-30 -10,317.00 30,087.00 4,884.00
2016-06-30 -10,799.00 29,969.00 3,814.00
2016-03-31 -10,894.00 29,793.00 2,944.00
2015-12-31 -11,476.00 28,480.00 3,417.00
2015-09-30 -12,226.00 28,907.00 2,393.00
2015-06-30 -11,798.00 29,202.00 1,838.00
2015-03-31 -12,246.00 30,585.00 1,524.00
2014-12-31 -11,203.00 29,455.00 1,682.00
2014-09-30 -8,677.00 28,843.00 2,043.00
2014-06-30 -7,847.00 29,509.00 1,541.00
2014-03-31 -7,157.00 29,679.00 1,823.00
2013-12-31 -6,274.00 27,678.00 2,154.00
2013-09-30 -5,908.00 26,800.00 3,382.00
2013-06-30 -3,929.00 25,499.00 3,586.00
2013-03-31 -2,732.00 25,598.00 3,981.00
2012-12-31 -1,853.00 22,839.00 2,983.00
2012-09-30 116.00 22,436.00 4,817.00
  • Philip Morris International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Philip Morris International's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (32%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).
X
Financial health checks
We assess Philip Morris International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Philip Morris International has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.14%
Current annual income from Philip Morris International dividends. Estimated to be 5.59% next year.
If you bought $2,000 of Philip Morris International shares you are expected to receive $103 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Philip Morris International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Philip Morris International's dividend is above the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2016 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 5.63 2.00
2022-12-31 5.34 2.00
2021-12-31 5.27 10.00
2020-12-31 4.91 16.00
2019-12-31 4.67 15.00
NYSE:PM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-07 4.560 5.741
2019-03-07 4.560 5.343
2018-12-06 4.560 5.982
2018-09-12 4.560 5.359
2018-06-08 4.560 5.573
2018-03-08 4.280 4.817
2017-12-07 4.280 4.065
2017-09-13 4.280 3.965
2017-06-09 4.160 3.536
2017-03-09 4.160 3.651
2016-12-07 4.160 4.288
2016-09-14 4.160 4.408
2016-06-09 4.080 4.068
2016-03-10 4.080 4.117
2015-12-09 4.080 4.564
2015-09-16 4.080 4.789
2015-06-11 4.000 4.857
2015-03-11 4.000 4.924
2014-12-10 4.000 4.853
2014-09-10 4.000 4.647
2014-06-11 3.760 4.400
2014-03-12 3.760 4.463
2013-12-11 3.760 4.592
2013-09-11 3.760 4.283
2013-06-12 3.400 3.882
2013-03-13 3.400 3.643
2012-12-12 3.400 3.833
2012-09-12 3.400 3.813
2012-06-13 3.080 3.443
2012-05-04 3.080 3.626
2011-12-07 3.080 3.771
2011-09-14 3.080 4.469
2011-06-08 2.560 3.751
2011-03-09 2.560 3.828
2010-12-08 2.560 4.329
2010-09-10 2.560 4.444
2010-06-09 2.320 4.673
2010-03-11 2.320 4.750
2009-12-09 2.320 4.758
2009-09-15 2.320 4.707
2009-06-10 2.160 4.806
2009-03-12 2.160 5.516
2008-12-16 2.160 5.640
2008-08-29 2.160 4.875

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Philip Morris International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Philip Morris International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Philip Morris International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Philip Morris International has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PM Management

 What is the CEO of Philip Morris International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
André Calantzopoulos
COMPENSATION $15,934,235
AGE 61
TENURE AS CEO 6.2 years
CEO Bio

Mr. André Calantzopoulos has been the Chief Executive Officer of Philip Morris International Inc. since May 8, 2013. Mr. Calantzopoulos served as the Chief Operating Officer of Philip Morris International, Inc. from March 28, 2008 to May 8, 2013. He joined PMI in 1985 as Business Development Analyst in the Business Development Department. In 1987, he transferred to the Area Operations Department. He served as the Chief Executive Officer and President of Philip Morris International, Inc. since March 2002. In 1990, he served as General Manager of Philip Morris Finland and has served a number of general management positions. In 1991, he served as General Manager for PMI in Czechoslovakia, where he played a key role in the acquisition of Tabak a. s. in 1992. Since 1992, he served as Area Director of Central Europe, covering the former Yugoslavia, Romania and Bulgaria and in 1993, Area Director of Hungary & Central Europe South. Since 1995, he served as Area Director of Poland & Hungary. He was instrumental in PMI's acquisition of local tobacco company ZPT in Krakow, Poland. Since 1996, he served as Managing Director of Poland, where he successfully managed the integration and change management process of PMI's largest acquisition in Central Europe. Since February 1999, he served as the President of PMI's Eastern Europe Region. Before joining PMI, he served as a Design Engineer for the automotive industry. He has been a Director of Philip Morris International, Inc. since May 8, 2013. Previously, he served as a Director of Philip Morris International Inc. until March 27, 2008. He holds an Electrical Engineering degree from Swiss Federal Institute of Technology in Lausanne and an MBA from INSEAD in France.

CEO Compensation
  • André's compensation has been consistent with company performance over the past year, both up more than 20%.
  • André's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Philip Morris International management team in years:

1.5
Average Tenure
54.5
Average Age
  • The average tenure for the Philip Morris International management team is less than 2 years, this suggests a new team.
Management Team

André Calantzopoulos

TITLE
CEO & Director
COMPENSATION
$16M
AGE
61
TENURE
6.2 yrs

Martin King

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
55
TENURE
1.5 yrs

Jacek Olczak

TITLE
Chief Operating Officer
COMPENSATION
$6M
AGE
54
TENURE
1.5 yrs

Marc Firestone

TITLE
President of External Affairs & General Counsel
COMPENSATION
$6M
AGE
60
TENURE
7.1 yrs

Mirek Zielinski

TITLE
Chief New Ventures Officer
COMPENSATION
$5M
AGE
58
TENURE
1.5 yrs

Frank De Rooij

TITLE
Vice President of Treasury & Corporate Finance
AGE
53

Michael Voegele

TITLE
Chief Technology Officer
AGE
46
TENURE
0.4 yrs

Patrick Brunel

TITLE
Chief Information Officer
AGE
54

Manuel Peitsch

TITLE
Chief Science Officer

Nicholas Rolli

TITLE
Vice President of Investor Relations and Financial Communications
Board of Directors Tenure

Average tenure and age of the Philip Morris International board of directors in years:

6.2
Average Tenure
65
Average Age
  • The tenure for the Philip Morris International board of directors is about average.
Board of Directors

Louis Camilleri

TITLE
Non-Executive Chairman
COMPENSATION
$700K
AGE
64
TENURE
4.6 yrs

André Calantzopoulos

TITLE
CEO & Director
COMPENSATION
$16M
AGE
61
TENURE
6.2 yrs

Jennifer Li

TITLE
Independent Director
COMPENSATION
$335K
AGE
51
TENURE
9.2 yrs

Kalpana Morparia

TITLE
Independent Director
COMPENSATION
$335K
AGE
70
TENURE
7.6 yrs

Jun Makihara

TITLE
Independent Director
COMPENSATION
$335K
AGE
61
TENURE
4.8 yrs

Frederik Paulsen

TITLE
Director
AGE
68
TENURE
4.8 yrs

Werner Geissler

TITLE
Independent Director
COMPENSATION
$335K
AGE
66
TENURE
4.5 yrs

Lucio Noto

TITLE
Independent Presiding Director
COMPENSATION
$325K
AGE
80

Stephen Wolf

TITLE
Independent Director
COMPENSATION
$300K
AGE
78
TENURE
11.5 yrs

Robert Polet

TITLE
Independent Director
COMPENSATION
$300K
AGE
64
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • Philip Morris International individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. May 19 Buy Michael Kunst Individual 29. May 19 31. May 19 1,000 $80.74 $79,655
30. Apr 19 Buy Michael Kunst Individual 29. Apr 19 29. Apr 19 2,500 $84.67 $211,675
26. Apr 19 Sell Louis Camilleri Individual 24. Apr 19 24. Apr 19 -70,000 $83.54 $-5,848,101
24. Apr 19 Sell Mario Masseroli Individual 22. Apr 19 22. Apr 19 -1,200 $84.32 $-101,185
22. Feb 19 Sell André Calantzopoulos Individual 21. Feb 19 21. Feb 19 -50,000 $84.76 $-4,237,750
30. Nov 18 Sell Louis Camilleri Individual 29. Nov 18 29. Nov 18 -59,495 $86.98 $-5,174,905
X
Management checks
We assess Philip Morris International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Philip Morris International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PM News

Simply Wall St News

What Do You Get For Owning Philip Morris International Inc (NYSE:PM)?

and want to better understand how you can grow your money by investing in Philip Morris International Inc (NYSE:PM). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Philip Morris International is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Do You Know Who Else Invests In Philip Morris International Inc (NYSE:PM)?

In this article, I will take a quick look at Philip Morris International Inc’s (NYSE:PM) recent ownership structure – an unconventional investing subject, but an important one. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine PM's ownership structure in more detail.

Simply Wall St -

What Should You Know About Philip Morris International Inc's (NYSE:PM) Capital Returns?

and looking to gauge the potential return on investment in Philip Morris International Inc (NYSE:PM). … Thus, to understand how your money can grow by investing in Philip Morris International, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Philip Morris International's Return On Capital Employed

Simply Wall St -

Is There An Opportunity With Philip Morris International Inc's (NYSE:PM) 25.5% Undervaluation?

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Philip Morris International Inc (NYSE:PM) as an investment opportunity. … by taking the expected future cash flows and discounting them to their present value. … If you are reading this and its not July 2018 then I highly recommend you check out the latest calculation for Philip Morris International by following the link below.

Simply Wall St -

2 Days Left Before Philip Morris International Inc (NYSE:PM) Will Start Trading Ex-Dividend, Should You Buy?

Have you been keeping an eye on Philip Morris International Inc's (NYSE:PM) upcoming dividend of $1.14 per share payable on the 11 July 2018? … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at Philip Morris International's most recent financial data to examine its dividend characteristics in more detail.

Simply Wall St -

How Does Philip Morris International Inc (NYSE:PM) Fare As A Dividend Stock?

The company currently pays out a dividend yield of 5.74% to shareholders, making it a relatively attractive dividend stock. … Does tick all the boxes of a great dividend stock? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Who Are The Top Investors In Philip Morris International Inc (NYSE:PM)?

See our latest analysis for Philip Morris International NYSE:PM Ownership_summary Jun 7th 18 Institutional Ownership In PM's case, institutional ownership stands at 73.10%, significant enough to cause considerable price moves in the case of large institutional transactions, especially when there is a low level of public shares available on the market to trade. … However, an ownership of this size may be relatively insignificant, meaning that these shareholders may not have the potential to influence PM's business strategy. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: PM's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Does Philip Morris International Inc (NYSE:PM) Fall With The Market?

Philip Morris International's beta of 0.91 indicates that the stock value will be less variable compared to the whole stock market. … PM’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … However, this is the opposite to what PM’s actual beta value suggests, which is lower stock volatility relative to the market.

Simply Wall St -

With A -14.59% Earnings Drop, Did Philip Morris International Inc (NYSE:PM) Really Underperform?

Today I will examine Philip Morris International Inc's (NYSE:PM) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of PM's industry performed. … Check out our latest analysis for Philip Morris International Was PM's recent earnings decline indicative of a tough track record? … For Philip Morris International, its latest earnings (trailing twelve month) is US$5.99B, which, in comparison to last year’s level, has dropped by -14.59%.

Simply Wall St -

What To Know Before Buying Philip Morris International Inc (NYSE:PM) For Its Dividend

Over the past 10 years Philip Morris International Inc (NYSE:PM) has returned an average of 4.00% per year from dividend payouts. … Check out our latest analysis for Philip Morris International Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Is its annual yield among the top 25% of dividend-paying companies? … NYSE:PM Historical Dividend Yield Apr 27th 18 How does Philip Morris International fare?

Simply Wall St -

PM Company Info

Description

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, and 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; Fortune and Jackpot in the Philippines; and Belmont and Canadian Classics in Canada. 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. The company was incorporated in 1987 and is headquartered in New York, New York.

Details
Name: Philip Morris International Inc.
PM
Exchange: NYSE
Founded: 1987
$138,046,383,420
1,555,802,811
Website: http://www.pmi.com
Address: Philip Morris International Inc.
120 Park Avenue,
New York,
New York, 10017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PM Common Shares New York Stock Exchange US USD 17. Mar 2008
DB 4I1 Common Shares Deutsche Boerse AG DE EUR 17. Mar 2008
LSE 0M8V Common Shares London Stock Exchange GB EUR 17. Mar 2008
SWX PMI Common Shares SIX Swiss Exchange CH CHF 17. Mar 2008
WBAG PMOR Common Shares Wiener Boerse AG AT EUR 17. Mar 2008
BMV PM * Common Shares Bolsa Mexicana de Valores MX MXN 17. Mar 2008
BATS-CHIXE PMIZ Common Shares BATS 'Chi-X Europe' GB CHF 17. Mar 2008
Number of employees
Current staff
Staff numbers
77,400
Philip Morris International employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 00:20
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/20
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.