Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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 solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels 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:
- Powered by its strong earnings growth of 36.66% and other important driving factors, this stock has surged by 26.59% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- PFIZER INC has improved earnings per share by 36.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.07 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($2.16 versus $1.07).
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for PFIZER INC is currently very high, coming in at 85.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.95% is above that of the industry average.
Pfizer Inc., a biopharmaceutical company, engages in the discovery, development, manufacture, and sale of medicines for people and animals worldwide. Pfizer has a market cap of $186.68 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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