NYSE:PM

Stock Analysis Report

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Market Cap

US$156.0b

Last Updated

2021/07/31 23:12 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. More Details


Snowflake Analysis

6 star dividend payer with solid track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PM's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

PM

0.2%

US Tobacco

-0.5%

US Market


1 Year Return

30.3%

PM

18.0%

US Tobacco

35.9%

US Market

Return vs Industry: PM exceeded the US Tobacco industry which returned 18% over the past year.

Return vs Market: PM underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

PMIndustryMarket
7 Day1.7%0.2%-0.5%
30 Day0.2%-6.5%0.09%
90 Day5.4%-9.7%3.2%
1 Year37.7%30.3%27.0%18.0%38.0%35.9%
3 Year37.4%15.3%0.7%-18.8%62.8%52.6%
5 Year31.2%1.2%-1.3%-26.4%121.2%96.9%

Long-Term 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

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 ($100.09) is trading below our estimate of fair value ($201.94)

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 (17.6x) compared to the Global Tobacco industry average (13.4x).

PE vs Market: PM is good value based on its PE Ratio (17.6x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: PM is poor value based on its PEG Ratio (2.4x)


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 15 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PM's forecast earnings growth (7.3% per year) is above the savings rate (2%).

Earnings vs Market: PM's earnings (7.3% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: PM's revenue (5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PM's revenue (5% 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?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PM has high quality earnings.

Growing Profit Margin: PM's current net profit margins (29.4%) are higher than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: PM's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: PM's earnings growth over the past year (21.8%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: PM earnings growth over the past year (21.8%) exceeded the Tobacco industry 2.4%.


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 (37.5%).

Interest Coverage: PM's interest payments on its debt are well covered by EBIT (20.3x coverage).


Balance Sheet


Dividend

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

4.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PM's dividend (4.8%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: PM's dividend (4.8%) is in the top 25% of dividend payers in the US market (3.54%)


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 (84.5%), 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 (74.5% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jacek Olczak (56 yo)

0.17

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 ($USD10.96M) is about average for companies of similar size in the US market ($USD11.17M).

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 ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: PM's board of directors are considered experienced (3.2 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$155.994b
  • 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


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 c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 23:12
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
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.