Stock of the Day

December 15, 2021

Philip Morris International (PM)

$154.39
+$2.82 (+1.9%)
Market Cap: $235.67B

About Philip Morris International

Philip Morris International Inc. operates as a tobacco company working to delivers a smoke-free future and evolving portfolio for the long-term to include products outside of the tobacco and nicotine sector. The company's product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products primarily under the IQOS and ZYN brands; and consumer accessories, such as lighters and matches. It also offers wellness and healthcare products. Philip Morris International Inc. was incorporated in 1987 and is headquartered in Stamford, Connecticut.

Philip Morris International Bull Case

Here are some ways that investors could benefit from investing in Philip Morris International Inc.:

  • The stock is currently trading at $149.18, reflecting strong market interest and potential for growth.
  • Philip Morris International Inc. recently reported earnings per share of $1.55, exceeding the consensus estimate of $1.49, indicating robust financial performance.
  • The company has declared a quarterly dividend of $1.35 per share, translating to an annualized dividend of $5.40, which offers a yield of 3.61%, appealing to income-focused investors.
  • Institutional investors hold approximately 78.63% of the stock, suggesting strong confidence in the company's long-term prospects.
  • Analysts have a "Moderate Buy" rating on the stock, with an average target price of $141.22, indicating potential upside for investors.

Philip Morris International Bear Case

Investors should be bearish about investing in Philip Morris International Inc. for these reasons:

  • The company has a negative return on equity of 120.08%, which may raise concerns about its ability to generate profit from shareholders' equity.
  • Philip Morris International Inc. has a high dividend payout ratio of 119.73%, suggesting that it may be returning more to shareholders than it is earning, which could be unsustainable.
  • Recent analyst downgrades, including a reduction in price targets by Barclays and StockNews.com, may indicate a bearish outlook from some market experts.
  • The stock has a relatively high price-to-earnings ratio of 33.07, which could suggest that it is overvalued compared to its earnings potential.
  • Market volatility, as indicated by a beta of 0.55, suggests that the stock may not respond favorably to market changes, which could deter risk-averse investors.

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