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Philip Morris (PM) Stock Analysis

This is a peer-relative look at Philip Morris (PM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Philip Morris (PM)
Profile ItemPM
NamePhilip Morris International Inc.
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryTobacco
GICS Sub-IndustryTobacco
Market Capitalization293.07 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 17, 2008
Security TypeCommon Stock

Price Performance

Cumulative Growth

PM
GSPC
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Philip Morris (PM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Philip Morris (PM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Philip Morris (PM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Total Return (1Y)7.96%0.15%
Total Return (3Y, Annualized)29.91%0.36%
Total Return (5Y, Annualized)19.73%1.03%

Risk Profile

Drawdown History

PM
GSPC
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Philip Morris (PM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Philip Morris (PM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Volatility (1Y, Annualized)28.98%31.35%
Beta (5Y)0.380.45
Max Drawdown (5Y)-22.78%-49.32%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Sharpe Ratio (1Y)0.14-0.15
Sortino Ratio (1Y)0.19-0.20

Profitability

ROE (TTM)

No usable ROE is available for Philip Morris (PM) this period, so the shareholder-equity return read is skipped.

PM

Food, Beverage & Tobacco industry group

--

Group distribution
Max
34.02%
Q3
18.27%
Median
14.93%
Q1
3.98%
Min
-12.58%
PM
--
Largest peers
PEP
51.51%
KO
43.37%
MNST
26.65%
BTI
15.82%
PM
--
BUD
--
MO
--
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Philip Morris (PM) doesn’t report ROE this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Net Margin (TTM)

Philip Morris (PM) keeps 26.74% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

PM

Food, Beverage & Tobacco industry group

26.74%

Group distribution
Max
27.80%
PM
26.74%
Q3
12.49%
Median
6.11%
Q1
1.35%
Min
-14.28%
Largest peers
MO
39.52%
BTI
30.32%
KO
27.80%
PM
26.74%
MNST
23.11%
BUD
11.90%
PEP
10.79%
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Where Philip Morris (PM) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Philip Morris (PM) turns 36.04% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

PM

Food, Beverage & Tobacco industry group

36.04%

Group distribution
PM
36.04%
Max
36.04%
Q3
17.42%
Median
10.90%
Q1
3.74%
Min
-7.33%
Largest peers
MO
62.30%
PM
36.04%
KO
35.06%
BTI
34.58%
MNST
31.02%
BUD
26.69%
PEP
16.84%
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Where Philip Morris (PM) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
ROE (TTM)--14.93%
ROA (TTM)15.46%5.50%
Net Margin (TTM)26.74%6.11%
Operating Margin (TTM)36.04%10.90%
Gross Margin (TTM)67.28%34.44%

Growth

Revenue Growth

Philip Morris (PM) grew revenue 7.31%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Philip Morris (PM): Revenue Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

EPS Growth

Philip Morris (PM) grew earnings per share 60.26%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Philip Morris (PM): EPS Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

Growth Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Revenue Growth (YoY)7.31%2.97%
Revenue Growth (3Y CAGR)8.57%3.03%
EPS Growth (YoY)60.26%-2.63%
EPS Growth (3Y CAGR)7.71%4.72%

Financial Strength

Current Ratio (MRQ)

Philip Morris (PM) has current ratio of 0.98, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

PM

Food, Beverage & Tobacco industry group

0.98

Group distribution
Max
4.39
Q3
2.41
Median
1.60
Q1
1.02
PM
0.98
Min
0.54
Largest peers
MNST
3.26
KO
1.36
PM
0.98
PEP
0.93
BTI
0.87
MO
0.62
BUD
--
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Where Philip Morris (PM) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

No usable debt-to-equity ratio is available for Philip Morris (PM) this period, so the balance-sheet leverage read is skipped.

PM

Food, Beverage & Tobacco industry group

--

Group distribution
Max
2.20
Q3
1.15
Median
0.67
Q1
0.34
Min
0.00
PM
--
Largest peers
PEP
2.39
KO
1.25
BUD
0.75
BTI
0.73
MNST
0.01
PM
--
MO
--
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Philip Morris (PM) doesn’t report debt-to-equity ratio this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Financial Strength Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Current Ratio (MRQ)0.981.60
Debt / Equity (MRQ)--0.67
Net Debt / EBITDA2.502.25

Dividends

Dividend Yield (TTM)

Philip Morris (PM) has dividend yield of 2.99%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

PM

Food, Beverage & Tobacco industry group

2.99%

Group distribution
Max
9.56%
Q3
4.15%
PM
2.99%
Median
2.57%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.63%
PEP
4.24%
BTI
3.92%
PM
2.99%
KO
2.51%
BUD
0.00%
MNST
0.00%
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Where Philip Morris (PM) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Philip Morris (PM) has payout ratio of 81.09%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

PM

Food, Beverage & Tobacco industry group

81.09%

Group distribution
Max
159.06%
Q3
85.24%
PM
81.09%
Median
44.62%
Q1
0.00%
Min
0.00%
Largest peers
MO
87.68%
PM
81.09%
PEP
75.33%
BTI
68.73%
KO
64.78%
BUD
36.02%
MNST
0.00%
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Where Philip Morris (PM) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
Dividend Yield (TTM)2.99%2.57%
Dividend Payout Ratio (TTM)81.09%44.62%

Valuation

P/E Ratio (TTM)

Philip Morris (PM) trades at P/E ratio of 27.10, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PM

Food, Beverage & Tobacco industry group

27.10

Group distribution
Max
53.44
Q3
29.84
PM
27.10
Median
18.36
Q1
13.03
Min
5.50
Largest peers
MNST
45.63
PM
27.10
KO
25.86
BUD
22.34
PEP
17.76
MO
15.56
BTI
13.56
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Where Philip Morris (PM) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Philip Morris (PM) trades at 7.06 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

PM

Food, Beverage & Tobacco industry group

7.06

Group distribution
PM
7.06
Max
4.15
Q3
2.38
Median
1.04
Q1
0.57
Min
0.00
Largest peers
MNST
10.51
KO
7.16
PM
7.06
MO
5.98
BTI
5.17
BUD
2.58
PEP
1.90
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Where Philip Morris (PM) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Philip Morris (PM) has negative P/B ratio of -31.58, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

PM

Food, Beverage & Tobacco industry group

-31.58

Group distribution
Max
5.75
Q3
3.46
Median
1.75
Q1
0.99
Min
0.00
PM
-31.58
Largest peers
BUD
10.91
BTI
10.78
MNST
10.58
KO
10.49
PEP
8.64
PM
-31.58
MO
-37.98
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Where Philip Morris (PM) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Philip Morris (PM) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: PMIndustry group median
P/E Ratio (TTM)27.1018.36
P/S Ratio (TTM)7.061.04
P/B Ratio (MRQ)-31.581.75
Free Cash Flow Yield (TTM)2.93%4.58%