PHILIP MORRIS INTERNATIONAL's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. PHILIP MORRIS INTERNATIONAL has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 36.11% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||7856.0||7927.0|
|Net Income ($mil)||2155.0||2340.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||2043.0||3382.0|
|Total Assets ($mil)||35401.0||36795.0|
|Total Debt ($mil)||28843.0||26800.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||67.87||69.43|
|Return on Assets||22.22||23.6|
|Return on Equity||0.0||0.0|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1555.96||1606.08|
|Div / share||1.0||0.94|
|Book value / share||-6.5||-4.63|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4614161.0||4249488.0|
HOLD. This stock's P/E ratio indicates a discount compared to an average of 18.57 for the Tobacco industry and a discount compared to the S&P 500 average of 19.74. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, PHILIP MORRIS INTERNATIONAL proves to trade at a discount to investment alternatives within the industry.
|PM 17.30||Peers 18.57||PM 15.31||Peers 16.72|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
PM is trading at a valuation on par with its peers.
Average. 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.
PM is trading at a valuation on par to its peers.
|PM 17.33||Peers 10.94||PM NM||Peers 0.88|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
PM is trading at a significant premium to its peers.
Neutral. 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.
PM's negative PEG ratio makes this valuation measure meaningless.
|PM NM||Peers 14.07||PM -5.70||Peers 0.02|
Neutral. 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.
PM's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, PM is expected to significantly trail its peers on the basis of its earnings growth rate.
|PM 4.41||Peers 4.44||PM -3.06||Peers 4.15|
Average. 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.
PM is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
PM significantly trails its peers on the basis of sales growth
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