Philip Morris International (PM)
Consumer Staples · $299B market cap · SEC CIK 0001413329
fundamentals score out of 100
Next reports on Oct 20, 2026, before the open, with analysts expecting $2.33 in earnings per share.
The case for PM
- Generated $10.7B of free cash flow in FY2025, 26% of revenue.
- 26% of revenue drops through to net profit.
- Revenue growing 8.9% year over year.
- Earnings per share up 32.0%.
- Earns 16% a year on everything it owns (return on assets).
- Pays a 5.5% dividend while you wait.
The case against
- Priced at 7.0× sales with revenue growing only 8.9%.
- Owes more than it owns: shareholder equity is -$10.0B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.98).
- Dividend takes 83% of earnings, leaving little cushion.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 32 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 76 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 87 |
| Momentumhow the price has behaved lately | 67 |
| Stabilityhow violently it moves, what it owes and what it pays you | 39 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 27.5× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 7.0× |
| Revenue growth (YoY) | +8.9% |
| EPS growth (YoY) | +32.0% |
| Gross margin | 68% |
| Operating margin | 38% |
| Net margin | 26% |
| Return on assets | 15.9% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.98 |
| Dividend yield | 5.51% |
| Beta | 0.39 |
| 52-week range | $142.11 – $207.76 |
| Position in that range | 73% of the way up |
| 3-month return | +5.1% |
| 1-year return | +15.1% |
Five years of financials, as filed
Pulled from Philip Morris International's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $40.6B | $37.9B | $35.2B | $31.8B | $31.4B |
| Gross profit | $27.3B | $24.5B | $22.3B | $20.4B | $21.4B |
| Operating income | $14.9B | $13.4B | $11.6B | $12.2B | $13.0B |
| Net income | $11.3B | $7.1B | $7.8B | $9.0B | $9.1B |
| Operating cash flow | $12.2B | $12.2B | $9.2B | $10.8B | $12.0B |
| Capital expenditure | $1.6B | $1.4B | $1.3B | $1.1B | $748M |
| Total assets | $69.2B | $61.8B | $65.3B | $61.7B | $41.3B |
| Total liabilities | $77.2B | $71.7B | $74.8B | $68.0B | $49.5B |
| Shareholder equity | -$10.0B | -$11.8B | -$11.2B | -$9.0B | -$10.1B |
| Cash | $4.9B | $4.2B | $3.1B | $3.2B | $4.5B |
| Free cash flow | $10.7B | $10.8B | $7.9B | $9.7B | $11.2B |
| Gross margin | 67.1% | 64.8% | 63.3% | 64.1% | 68.1% |
| Operating margin | 36.6% | 35.4% | 32.9% | 38.6% | 41.3% |
| Net margin | 27.9% | 18.6% | 22.2% | 28.5% | 29.0% |
| Diluted shares | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B |
Share count is essentially flat over 4 years.
What Philip Morris International says it does
Development of Business General Philip Morris International Inc. is a Virginia holding company incorporated in 1987. In March 2008, we became a U.S. public company listed on the New York Stock Exchange and subject to the rules of the U.S. Securities and Exchange Commission (the "SEC"). We are a leading international consumer goods company, actively delivering a smoke-free future and evolving our portfolio for the long term to include products outside of the tobacco and nicotine sector. Our current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Since 2008, we have invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This investment includes the building of world-class scientific…
Risk factors PM lists in its 10-K
- Impairment of goodwill and other intangibles –
- Goodwill and Other Intangible Assets, net
- Fair value adjustment for equity security investments –
- Related Parties - Equity Investments and Other
- Impairment related to the RBH equity investment
- Germany excise tax classification litigation charge
- RBH (Canada) Plan implementation, including dividend income, net
- Related Parties - Equity Investments and Other,
- Impairment of Wellness business related equity investment
- Loss on expected sale of consumer accessories and other businesses
- Operating Results by Business Segment
- Summary of Significant Accounting Policies
- Goodwill and Non-Amortizable Intangible Assets Valuation -
- Investment in non-marketable equity securities