PM Philip Morris International Inc. - Fundamental Analysis
BULLISH
PM Stock | Fundamental Analysis & Investment Insights
NYSE
•
Consumer Defensive
•
Tobacco
Current Price
$155.43
Analyst Target
$185.75
+19.5% Upside
52W High
$186.69
52W Low
$116.12
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
92%
Analysis Accuracy
Philip Morris International (PM) presents a compelling investment case supported by strong profitability, consistent earnings growth, and a resilient dividend profile. Despite near-term price weakness over the past six months (-7.3%), the stock has delivered exceptional long-term returns (+153.1% over 5Y), underpinned by robust YoY EPS growth of 17.3% and a track record of beating earnings estimates in 22 of the last 25 quarters. The company’s high operating margin (40.75%) and gross margin (66.92%) reflect pricing power and cost discipline in a defensive sector, while its forward P/E of 21.59 appears justified given growth and stability. Analysts concur with a unanimous buy rating and a $185.75 target price, implying ~19.5% upside, reinforcing confidence in continued outperformance.
Key Strengths
Exceptional profitability with operating margin of 40.75% and gross margin of 66.92%, among the highest in consumer defensive sector
Consistent earnings growth: 13.1% YoY and 17.3% most recent Q/Q EPS growth, demonstrating strong underlying momentum
Outstanding earnings surprise record: 22 out of 25 quarters beat estimates, with an average surprise of +4.82% over the last four
Attractive dividend yield of 3.78% with a sustainable 78.76% payout ratio, well-covered by earnings
Significant analyst price upside: $185.75 target implies 19.5% appreciation from current $155.43 level
Key Risks
Negative Price/Book ratio (-22.17) suggests deep negative equity, likely due to aggressive share buybacks exceeding retained earnings
Weak liquidity profile: current ratio of 0.85 and quick ratio of 0.37 indicate potential near-term cash flow pressure
Missing key financials (debt/equity, EV, cash/debt) limits full health assessment and raises transparency concerns
Tobacco sector faces structural headwinds from declining smoking rates and increasing regulation globally
Valuation appears stretched relative to historical norms and sector peers, with P/E of 22.17 and P/S of 6.05 above defensive averages
AI Fair Value Estimate
Based on comprehensive analysis
$185.75
+19.5% above current price
Performance Snowflake
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Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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