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
| Profile Item | PM |
|---|---|
| Name | Philip Morris International Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco |
| GICS Industry | Tobacco |
| GICS Sub-Industry | Tobacco |
| Market Capitalization | 293.07 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 2008 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: PM | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: PM | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 28.98% | 31.35% |
| Beta (5Y) | 0.38 | 0.45 |
| Max Drawdown (5Y) | -22.78% | -49.32% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: PM | Industry 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
- --
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%
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%
Profitability Metrics
| Metric | Current stock: PM | Industry 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.
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.
Growth Metrics
| Metric | Current stock: PM | Industry 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
- --
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
- --
Financial Strength Metrics
| Metric | Current stock: PM | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.98 | 1.60 |
| Debt / Equity (MRQ) | -- | 0.67 |
| Net Debt / EBITDA | 2.50 | 2.25 |
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%
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%
Dividend Metrics
| Metric | Current stock: PM | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: PM | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 27.10 | 18.36 |
| P/S Ratio (TTM) | 7.06 | 1.04 |
| P/B Ratio (MRQ) | -31.58 | 1.75 |
| Free Cash Flow Yield (TTM) | 2.93% | 4.58% |