About Philip Morris International Inc
Philip Morris International Inc. operates as a tobacco company. The company offers cigarettes and smoke-free products, including heat-not-burn, e-vapor, and oral nicotine products under the IQOS, VEEV, and ZYN brands; and consumer accessories, such as lighters and matches. It also offers wellness products. The company was incorporated in 1987 and is headquartered in Stamford, Connecticut.
Philip Morris International Inc (PM) is a Consumer Defensive company in the Tobacco industry with a market capitalisation of $297.8B. The stock trades at 26.24x trailing earnings and yields 3.08%.
- Sector
- Consumer Defensive
- Industry
- Tobacco
- Market cap
- $297.8B
- P/E ratio
- 26.24
- Forward P/E
- 20.84
- EPS (TTM)
- $7.28
- Revenue (TTM)
- $42.5B
- Free cash flow
- $9.7B
- Profit margin
- 25.6%
- Dividend yield
- 3.08%
- Beta
- 0.40
- Shares outstanding
- 1.6B
Financial health: Fair5.5/10
6 strengths, 5 concerns. Weakest points: current ratio, return on equity, earnings growth and 2 more.
- Debt to equity: -0.02 (Strong, benchmark < 0.5) — Debt of -0.02x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($4.7B net cash).
- Current ratio: 0.96 (Concern, benchmark > 1.5) — Short-term assets cover only 0.96x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has improved over the last 4 years.
- Return on equity: -113.5% (Concern, benchmark > 15%) — Earns -113.5% on shareholder equity, well short of the > 15% mark.
- Gross margin: 67.5% (Strong, benchmark > 40%) — Keeps 67.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 25.6% (Strong, benchmark > 10%) — Turns 25.6% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $10.7B (Strong, benchmark positive) — Generated $10.7B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 10.4% (Strong, benchmark > 10%) — Revenue changed 10.4% year on year, comfortably past the > 10% mark.
- Earnings growth: -7.5% (Concern, benchmark > 10%) — Earnings changed -7.5% year on year, well short of the > 10% mark.
- PEG ratio: 2.29 (Concern, benchmark < 1) — At 2.29, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 80.7% (Concern, benchmark < 60%) — Pays out 80.7% of earnings as dividends — above the level usually considered sustainable.