Philip Morris International Inc
Exchange: NYSESector: Consumer DefensiveIndustry: Tobacco
Delivering a Smoke-Free Future Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements.
Did you know?
Pays a 3.27% dividend yield.
Current Price
$169.19
+3.20%GoodMoat Value
$144.60
14.5% overvaluedProfile
Valuation (TTM)
Market Cap$263.37B
P/E23.21
EV$298.07B
P/B—
Shares Out1.56B
P/Sales6.48
Revenue$40.65B
EV/EBITDA18.03
Philip Morris International Inc (PM) Stock Analysis
GoodMoat Analysis
Philip Morris International is a global tobacco giant with a durable moat built on brand power and pricing authority, but it faces a long-term secular decline. The stock is currently priced above the GoodMoat Target, suggesting a valuation that requires careful scrutiny against its growth and transition risks.
Read full analysis
Philip Morris International (PM) is a leading global tobacco company, selling its iconic Marlboro brand and other cigarettes outside the U.S. Its core competitive advantage, or moat, is exceptionally strong. Applying the GoodMoat framework, it scores highly on Brand & Culture, given its dominant global brand awareness, and Pricing Power, evidenced by its ability to consistently raise prices. It also benefits from Regulatory Barriers in many markets and Strategic Partnerships with distributors. However, the framework's Low Disruption Risk criterion is a significant challenge, as the entire industry faces secular decline and regulatory pressure, which is a structural headwind to its traditional business. The company's financial quality is mixed; it shows a robust 36.6% operating margin and a 27.9% profit margin, but revenue growth of 6.8% is modest and the 4.1% FCF yield is not exceptional for a value stock. According to the Decision Framework, the business likely passes the initial Moat & Quality Gate due to its durable advantages, but the valuation assessment is critical. The current price of $165.5 is above the provided GoodMoat Target of $144.60, indicating a potentially unfavourable or, at best, marginal margin of safety. For a value investor, this suggests the stock is not deeply undervalued. The investment case hinges on the successful transition to reduced-risk products like IQOS, which must offset the decline in cigarettes. Further investigation would require a detailed DCF analysis to confirm the intrinsic value and a deep dive into the growth trajectory of its smoke-free portfolio. Analysis based on data as of 2024-05-15.
Market Cap$263.37B
Current Price$169.19
P/E Ratio23.21
Forward P/E—
PEG Ratio-0.05
EPS$7.26
Book Value$-6.42
P/B Ratio—
PM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 44.0B
Revenue
29.8B
FY19
28.7B
FY20
31.4B
FY21
31.8B
FY22
35.2B
FY23
37.9B
FY24
40.6B
FY25
Net Income
7.2B
FY19
8.1B
FY20
9.1B
FY21
9.0B
FY22
7.8B
FY23
7.1B
FY24
11.3B
FY25
PM 52-Week Range
$141.75
$188.11
50-Day MA: $169.53200-Day MA: $162.10
Did you know?
Profit margin of 27.9% — that's well above average.
Philip Morris International Inc (PM) Financial Summary
Philip Morris International Inc (PM) is a Consumer Defensive company in the Tobacco industry, listed on NYSE. The stock currently trades at $169.19 with a market capitalization of $263.37B.
Key valuation metrics include a P/E ratio of 23.21, and EPS of $7.26. The company reports a profit margin of 27.9%.
PM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $263.37B |
| P/E Ratio | 23.21 |
| EPS | $7.26 |
| P/S Ratio | 6.48 |
| EV/EBITDA | 18.03 |
| Dividend Yield | 3.27% |
| Profit Margin | 27.9% |
PM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $29.80B | $7.18B |
| FY20 | $28.69B | $8.06B |
| FY21 | $31.41B | $9.11B |
| FY22 | $31.76B | $9.05B |
| FY23 | $35.17B | $7.81B |
| FY24 | $37.88B | $7.06B |
| FY25 | $40.65B | $11.35B |
Philip Morris International Inc (PM) Valuation
Based on GoodMoat's DCF model, Philip Morris International Inc has a fair value estimate of $144.60. At the current price of $169.19, the stock appears 17.0% overvalued relative to our intrinsic value estimate.
PM Quality Indicators
Philip Morris International Inc maintains a profit margin of 27.9% and an operating margin of 36.6%. The current ratio is 0.96.
About Philip Morris International Inc
Delivering a Smoke-Free Future Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements.
PM Free Cash Flow
Philip Morris International Inc generated $10.66B in trailing twelve-month free cash flow, representing an FCF yield of 4.05%. This moderate FCF yield indicates reasonable cash generation.
PM Shares Outstanding
Philip Morris International Inc has 1.56 billion shares outstanding at a share price of $169.19, giving it a market capitalization of $263.37B.
PM Recent Insider Trades
Recent insider transactions at Philip Morris International Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Dobrowolski Reginaldo (Group Controller) | SELL | 5,000 | $917300.00 |
| Kennedy Stacey (CEO PMI U.S.) | SELL | 14,350 | $2.63M |
| Babeau Emmanuel (Group Chief Financial Officer) | SELL | 33,800 | $6.14M |