Philip Morris International Inc. (PM) stock analysis

P/E above its 5-year median

Philip Morris International's P/E of 28.7 is above its own 5-year median of 19.3.

P/E above the industry

Philip Morris International's P/E of 28.7 is above the Consumer staples median of 23.3.

EV/EBITDA above its 5-year median

Philip Morris International's EV/EBITDA of 18.6 is above its 5-year median of 17.2.

P/S above the industry

Philip Morris International's price-to-sales of 7.09 is above the Consumer staples median of 0.72 (book value is negative, so we use sales).

Trading above fair value

The share price of $196.35 is above our fair value estimate of $140.68.

Margin of safety under 20%

The price is 39.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 7.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 24.1% over the last twelve months, against a 5-year average of 7.1% a year.

Growing faster than the industry

Revenue grew 7.9% over the last twelve months; the Consumer staples median is 3.7%.

Guidance lowered

Philip Morris International lowered its 2026 Full-Year Reported diluted EPS outlook on Jul 22, 2026.

Gross margin improving

Gross margin was 67.7% over the last twelve months, against 67.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 38.7%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 7.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 24.8% over the last twelve months, against a 5-year average of 25.3%.

Net margin above the industry

Philip Morris International's net margin of 24.8% is above the Consumer staples median of 1.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 31.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.02 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.78; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Philip Morris International paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Philip Morris International yields 3.1%.

Dividend not cut

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

Covered by earnings

Dividends take 85.9% of net income.

Covered by free cash flow

Dividends take 67.7% of free cash flow.