NYSE:PFE

Stock Analysis Report

Executive Summary

Pfizer Inc. develops, manufactures, and sells healthcare products worldwide.

Rewards

Trading at 48.7% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -15.5% per year for the next 3 years

Has a high level of debt

Unstable dividend track record

Profit margins (30.6%) are lower than last year (44.6%)



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Pfizer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

PFE

1.2%

US Pharmaceuticals

-0.3%

US Market


1 Year Return

-12.8%

PFE

-0.1%

US Pharmaceuticals

18.6%

US Market

Return vs Industry: PFE underperformed the US Pharmaceuticals industry which returned -0.1% over the past year.

Return vs Market: PFE underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

PFEIndustryMarket
7 Day-0.6%1.2%-0.3%
30 Day3.7%-1.1%2.2%
90 Day4.9%7.5%5.6%
1 Year-9.6%-12.8%2.5%-0.1%21.1%18.6%
3 Year34.9%20.8%31.3%21.9%45.6%36.2%
5 Year48.1%23.7%25.8%12.5%71.1%52.2%

Price Volatility Vs. Market

How volatile is Pfizer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pfizer undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFE ($38.29) is trading below our estimate of fair value ($74.7)

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


Price To Earnings Ratio

PE vs Industry: PFE is good value based on its PE Ratio (13.3x) compared to the Pharmaceuticals industry average (17.3x).

PE vs Market: PFE is good value based on its PE Ratio (13.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PFE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PFE is overvalued based on its PB Ratio (3.3x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Pfizer forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFE's earnings are forecast to decline over the next 3 years (-15.5% per year).

Earnings vs Market: PFE's earnings are forecast to decline over the next 3 years (-15.5% per year).

High Growth Earnings: PFE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PFE's revenue (0.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PFE's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFE's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Pfizer performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFE has high quality earnings.

Growing Profit Margin: PFE's current net profit margins (30.6%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: PFE's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: PFE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PFE had negative earnings growth (-31.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (21.3%).


Return on Equity

High ROE: PFE's Return on Equity (24.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pfizer's financial position?


Financial Position Analysis

Short Term Liabilities: PFE's short term assets ($33.5B) do not cover its short term liabilities ($37.0B).

Long Term Liabilities: PFE's short term assets ($33.5B) do not cover its long term liabilities ($68.1B).


Debt to Equity History and Analysis

Debt Level: PFE's debt to equity ratio (80.5%) is considered high.

Reducing Debt: PFE's debt to equity ratio has increased from 47.5% to 80.5% over the past 5 years.

Debt Coverage: PFE's debt is well covered by operating cash flow (25.7%).

Interest Coverage: PFE's interest payments on its debt are well covered by EBIT (15.5x coverage).


Balance Sheet

Inventory Level: PFE has a low level of unsold assets or inventory.

Debt Coverage by Assets: PFE's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Pfizer's current dividend yield, its reliability and sustainability?

3.76%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: PFE's dividend (3.76%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: PFE's dividend (3.76%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: PFE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.3%), PFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFE's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Albert Bourla (57yo)

0.9yrs

Tenure

US$9,854,557

Compensation

Mr. Albert Bourla, DVM, Ph.D. serves as the Chief Executive Officer of Pfizer Inc. since January 1, 2019 and has been its Executive Director since February 23, 2018. Mr. Bourla was Chief Operating Officer  ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD9.85M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

Experienced Management: PFE's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PFE's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$104,16026 Aug 19
Scott Gottlieb
EntityIndividual
Shares3,000
Max PriceUS$34.72
SellUS$357,83118 Mar 19
Rady Johnson
EntityIndividual
Role
Chief Compliance Officer
EVP and Chief Compliance
Shares8,700
Max PriceUS$41.13
SellUS$644,79805 Mar 19
Dawn Rogers
EntityIndividual
Shares15,002
Max PriceUS$42.99
SellUS$1,887,17605 Mar 19
Mikael Dohlsten
EntityIndividual
Shares43,362
Max PriceUS$43.54
SellUS$1,811,82102 Feb 19
Douglas Lankler
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares43,800
Max PriceUS$42.75

Ownership Breakdown

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


Management Team

  • Chuck Triano

    Senior Vice President of Investor Relations

    • Tenure: 11.5yrs
  • Loretta Cangialosi

    Senior VP

    • Tenure: 0yrs
  • Frank D'Amelio (61yo)

    CFO & EVP of Global Supply & Business Operations

    • Tenure: 12.3yrs
    • Compensation: US$7.14m
  • Lidia Fonseca (50yo)

    EVP & Chief Digital and Technology Officer

    • Tenure: 0.9yrs
  • Ian Read (65yo)

    Executive Chairman

    • Tenure: 8yrs
    • Compensation: US$19.55m
  • Mikael Dolsten (60yo)

    Chief Scientific Officer and President of Worldwide Research

    • Tenure: 0.4yrs
    • Compensation: US$7.07m
  • Doug Lankler (53yo)

    Executive VP & General Counsel

    • Tenure: 6yrs
  • John Young (54yo)

    Group President & Chief Business Officer

    • Tenure: 7.5yrs
    • Compensation: US$7.12m
  • Rady Johnson (57yo)

    EVP and Chief Compliance

    • Tenure: 6yrs
  • Albert Bourla (57yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$9.85m

Board Members

  • W. Cornwell (71yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$368.75k
  • Shantanu Narayen (55yo)

    Lead Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$382.32k
  • Jim Kilts (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$345.89k
  • Suzanne Nora Johnson (62yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$363.39k
  • Jim Smith (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$363.39k
  • Chuck Hagel (73yo)

    Member of Emerging Markets Advisory Board

    • Tenure: 0yrs
  • Ian Read (65yo)

    Executive Chairman

    • Tenure: 8yrs
    • Compensation: US$19.55m
  • Joe Echevarria (62yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$353.75k
  • Helen Hobbs (67yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$378.39k
  • Albert Bourla (57yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$9.85m

Company Information

Pfizer Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pfizer Inc.
  • Ticker: PFE
  • Exchange: NYSE
  • Founded: 1849
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$210.573b
  • Shares outstanding: 5.53b
  • Website: https://www.pfizer.com

Number of Employees


Location

  • Pfizer Inc.
  • 235 East 42nd Street
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
US_PFE_KAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJan 1968
PFEBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
0Q1NLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
PFEOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKJan 1968
PFEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
PFEXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
PFE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
PFEBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 1968
PFESBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBSEKJan 1968
PFESNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
PF-UETLX (Eurotlx)YesCommon StockITEURJan 1968
PFEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
PFEBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REP 1 ORD USD0.05ARARSSep 2000
PFIZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1 COM STK NPVBRBRLMay 2011

Biography

Pfizer Inc. develops, manufactures, and sells healthcare products worldwide. It offers medicines and vaccines in various therapeutic areas, including internal medicine, vaccines, oncology, inflammation and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:42
End of Day Share Price2019/12/06 00:00
Earnings2019/09/29
Annual Earnings2018/12/31


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.