Philip Morris International Inc

Find Ratings Reports
PM : NYSE : Consumer Goods
$90.24 | %
Today's Range: 89.4 - 90.53
Avg. Daily Volume: 5051100.0
12/09/16 - 4:00 PM ET

Financial Analysis


PHILIP MORRIS INTERNATIONAL's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PHILIP MORRIS INTERNATIONAL has weak liquidity. Currently, the Quick Ratio is 0.56 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.60% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)6982.06927.0
EBITDA ($mil)3165.03143.0
EBIT ($mil)2977.02959.0
Net Income ($mil)1938.01942.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4884.02393.0
Total Assets ($mil)35577.032011.0
Total Debt ($mil)30087.028907.0
Equity ($mil)-12142.0-13582.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin67.5967.98
EBITDA Margin45.3345.37
Operating Margin42.6442.72
Sales Turnover0.730.86
Return on Assets18.2822.6
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.161.0
Debt/Capital1.681.89
Interest Expense220.0247.0
Interest Coverage13.5311.98


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1551.351549.29
Div / share1.041.02
EPS1.251.25
Book value / share-7.83-8.77
Institutional Own % n/a n/a
Avg Daily Volume5066520.04367711.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 19.97 for the Tobacco industry and a discount compared to the S&P 500 average of 25.79. 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 price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PM 21.50 Peers 19.97   PM 17.87 Peers 26.36

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.

 

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.

PM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PM 18.67 Peers 13.78   PM 12.72 Peers 4.24

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.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PM NM Peers 20.39   PM -10.11 Peers 2.01

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PM 5.34 Peers 5.87   PM -5.41 Peers -0.63

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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