Philip Morris International Inc. Stock Hold Recommendation Reiterated (PM)

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 ( TheStreet) -- Philip Morris International (NYSE: PM) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

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Highlights from the ratings report include:
  • PM's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for PHILIP MORRIS INTERNATIONAL is rather high; currently it is at 68.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.55% is above that of the industry average.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • PHILIP MORRIS INTERNATIONAL has improved earnings per share by 15.7% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PHILIP MORRIS INTERNATIONAL increased its bottom line by earning $5.18 versus $4.84 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $5.18).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Tobacco industry average. The net income increased by 11.1% when compared to the same quarter one year prior, going from $1,886.00 million to $2,095.00 million.

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products. Philip Morris International has a market cap of $150.58 billion and is part of the consumer goods sector and tobacco industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Wednesday.

You can view the full Philip Morris International Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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