0.55 | 1.91%
PFIZER INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. PFIZER INC has strong liquidity. Currently, the Quick Ratio is 1.75 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.20% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 13500.0 | 14885.0 |
| EBITDA ($mil) | 6177.0 | 7313.0 |
| EBIT ($mil) | 4403.0 | 5092.0 |
| Net Income ($mil) | 2742.0 | 1794.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 35346.0 | 23972.0 |
| Total Assets ($mil) | 187398.0 | 185683.0 |
| Total Debt ($mil) | 40377.0 | 39069.0 |
| Equity ($mil) | 82250.0 | 83256.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 84.64 | 87.47 |
| EBITDA Margin | 45.75 | 49.12 |
| Operating Margin | 32.61 | 34.21 |
| Sales Turnover | 0.31 | 0.35 |
| Return on Assets | 8.28 | 5.15 |
| Return on Equity | 12.78 | 9.54 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 2.35 | 2.02 |
| Debt/Capital | 0.33 | 0.32 |
| Interest Expense | 400.0 | 400.0 |
| Interest Coverage | 11.01 | 12.73 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 7093.22 | 7488.14 |
| Div / share | 0.24 | 0.22 |
| EPS | 0.38 | 0.23 |
| Book value / share | 11.6 | 11.12 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3.2079102E7 | 3.2510282E7 |
BUY. PFIZER INC's P/E ratio indicates a discount compared to an average of 24.42 for the Pharmaceuticals industry and a value on par with the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 2.52 indicates valuation on par with the S&P 500 average of 2.44 and a significant discount versus the industry average of 6.58. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, PFIZER INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PFE 20.74 | Peers 24.42 | PFE 12.78 | Peers 18.01 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PFE is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PFE is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| PFE 12.29 | Peers 15.97 | PFE 0.27 | Peers 0.63 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PFE is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PFE trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| PFE 2.52 | Peers 6.58 | PFE 36.89 | Peers -7.87 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PFE is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PFE is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| PFE 3.60 | Peers 4.93 | PFE -10.17 | Peers 13.67 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PFE is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. PFE significantly trails its peers on the basis of sales growth |
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