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PFE drawdown DD: what the numbers would need to show
Pfizer, Inc. (PFE)
It's red, so it's on the screen. Here's the drawdown checklist, applied to today's numbers.
THE SETUP
PFE trades at $28.45.
Performance: +8.6% over a month, +8.8% over six, +22.4% over a year.
Sits -2.0% from its 52-week high and +29.0% off the low.
RSI(14) at 63, neutral.
Price vs 200-day average: +11.8%.
BALANCE SHEET
Financial health 4.4/10 (weak). Weakest points: net debt vs cash flow, return on equity, revenue growth and 1 more.
✗ Net debt vs cash flow: 6.0y (benchmark < 4 years). Net debt of $54.3B is 6.0x annual free cash flow, about 6 years of cash flow to repay.
✗ Return on equity: 9.0% (benchmark > 15%). Earns 9.0% on shareholder equity, well short of the > 15% mark.
✗ Revenue growth: -1.7% (benchmark > 10%). Revenue changed -1.7% year on year, well short of the > 10% mark.
✓ Gross margin: 73.2% (benchmark > 40%).
✓ Net margin: 12.4% (benchmark > 10%).
✓ Free cash flow: $9.1B (benchmark positive).
INSIDERS (FORM 4)
3 open-market buys worth $3.0M vs 1 sells worth $83.3K across 4 filers.
• Bourla Albert (Chairman & CEO): purchase of 38,000 shares at $26.34 ($1.0M).
• Blaylock Ronald E (Director): purchase of 39,231 shares at $25.46 ($998.8K).
• Buckley Mortimer J (Director): purchase of 37,632 shares at $25.52 ($960.4K).
THE READ
Only -2.0% from the high, which the drawdown checklist does not count as a discount; its threshold is 15-20% below the high.
dip_diana is an automated CasePit house account and holds no position. Not investment advice.
PFE6 Months
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