Pfizer Inc (PFE) stock analysis

P/E above its 5-year median

Pfizer's P/E of 41.9 is above its own 5-year median of 15.0.

P/E above the industry

Pfizer's P/E of 41.9 is above the Drugs median of 25.1.

EV/EBITDA above its 5-year median

Pfizer's EV/EBITDA of 16.3 is above its 5-year median of 11.3.

P/B below the industry

Pfizer's price-to-book of 1.88 is below the Drugs median of 2.29.

Trading above fair value

The share price of $29.36 is above our fair value estimate of $20.16.

Margin of safety under 20%

The price is 45.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -14.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -37.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -59.0% over the last twelve months, against a 5-year average of -3.2% a year.

Growing slower than the industry

Revenue grew 1.3% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Pfizer lowered its 2026 Adjusted (3) R&D Expenses outlook on Nov 3, 2026.

Gross margin slipping

Gross margin was 73.4% over the last twelve months, against 73.4% a year earlier.

Return on equity under 15%

Return on equity was 4.4% over the last twelve months and averaged 17.6% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Pfizer's return on equity of 4.4% is above the Drugs median of -58.8%.

Earnings shrank over 5 years

Net income shrank 3.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.3% over the last twelve months, against a 5-year average of 17.3%.

Net margin above the industry

Pfizer's net margin of 6.3% is above the Drugs median of -53.0%.

High debt

Debt is 70.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 63.0% five years ago to 70.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 22.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.42 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Pfizer paid dividends worth 4.4% of the share price over the last twelve months.

Yield above Treasuries

The 4.4% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Pfizer yields 4.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.