Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PFE has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
- PFIZER INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.20 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.20).
- PFE's share price has surged by 30.24% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PFE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has increased to $5,908.00 million or 18.08% when compared to the same quarter last year. Despite an increase in cash flow, PFIZER INC's cash flow growth rate is still lower than the industry average growth rate of 30.04%.
Pfizer Inc., a biopharmaceutical company, discovers, develops, manufactures, and sells medicines for people and animals worldwide. Pfizer has a market cap of $208.3 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 21.00, above the S&P 500 P/E ratio of 18.00. Shares are up 28.1% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.