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Philip Morris International Inc.
PM
$300.8B
Mkt Cap
$193.00
+0.98%
Philip Morris International Inc. (PM) has a current P/E ratio of 26.6, compared to its historical median P/E of 14.5. The stock is currently considered Expensive based on its historical valuation range.
Philip Morris International Inc. (PM) has a 5-year average return on invested capital (ROIC) of 51.4%. This indicates strong capital allocation and a potential competitive advantage.
Philip Morris International Inc. (PM) has a market capitalization of $407.1B. It is classified as a mega-cap stock.
Yes, Philip Morris International Inc. (PM) pays a dividend with a trailing twelve-month yield of 2.17%.
Based on historical P/E analysis, Philip Morris International Inc. (PM) appears expensive. The current P/E of 26.6 is 84% above its historical median of 14.5. The estimated fair value CAGR (P/E method) is 2.0%.
Philip Morris International Inc. (PM) operates in the Cigarettes industry, within the Consumer Defensive sector.
Philip Morris International is a leading international consumer goods company with a diversified portfolio of cigarettes and smoke-free products, including heat-not-burn devices (IQOS), nicotine pouches (ZYN), and e-vapor products (VEEV), sold across approximately 170 markets for cigarettes and 106 markets for smoke-free products. The company earns revenue through direct sales, independent distributors, exclusive zonified distribution, national wholesalers, e-commerce, and brand retail infrastructure tailored to each market's characteristics. PMI's business model combines a mature, high-margin combustible segment—led by the Marlboro brand, which accounted for approximately 43% of 2025 cigarette shipment volume and holds number one or two market share in many markets—with a rapidly growing smoke-free segment that has received significant investment of over $16 billion since 2008 and includes FDA-authorized products with Modified Risk Tobacco Product designations. The company's competitive moat derives from strong brand recognition, particularly Marlboro's position as the world's best-selling international cigarette, coupled with proprietary technology in heat-not-burn devices and scientific substantiation capabilities in toxicology and clinical research. Unit economics are characterized by premium pricing power across both segments, with combustibles delivering low single-digit gross profit growth despite volume declines, while smoke-free products command best-in-class margins within the company and drive significant operating leverage as the portfolio mix shifts. Geographic diversification spans Europe, South and Southeast Asia, the Middle East, Africa, East Asia, Australia, and the Americas, with the company holding at least 15% market share in approximately 100 markets globally.
【Smoke-free momentum accelerating】 Management expects continued strong underlying growth across all three smoke-free categories—IQOS, ZYN, and VEEV—with high single-digit volume progression and double-digit adjusted in-market sales growth, supported by innovation launches including ZYN Ultra pending FDA authorization. Combustible volumes are forecast to decline around 3% in 2026 due to excise tax impacts in India and Mexico and comparisons in Turkey, but pricing is expected to remain robust at approximately 6% variance, with the company maintaining pricing power led by Marlboro. The company anticipates organic net revenue growth of 5%–7% and organic operating income growth of 7%–9% for 2026, reflecting continued positive smoke-free mix, operating leverage, and cost efficiencies, while maintaining significant investment behind the smoke-free portfolio. Strong cash generation is expected to support deleveraging toward a target leverage ratio of close to 2x by end of 2026, with the dividend payout approaching the company's objective of around 75% of adjusted diluted EPS, providing capacity for shareholder returns.
| Metric | Target | Period |
|---|---|---|
| Organic net revenue growth | 5%–7% | FY2026 |
| Organic operating income growth | 7%–9% | FY2026 |
| Currency-neutral adjusted diluted EPS growth | 7.5%–9.5% | FY2026 |
| Adjusted diluted EPS (dollar terms) | $8.36–$8.51 | FY2026 |
| Operating cash flow | ~$13.5 billion | FY2026 |
| Cigarette volume decline | ~3% | FY2026 |
| Combustible pricing variance | ~6% | FY2026 |
| Leverage ratio target | close to 2x | End of 2026 |
Organic net revenue growth (FY2026): “we forecast 2026 organic net revenue growth of 5%-7%”
Organic operating income growth (FY2026): “we forecast 2026 organic net revenue growth of 5%-7%. We expect the same factors, in addition to operating leverage and ongoing cost efficiencies, to drive further robust margin expansion, with projected organic operating income growth of 7%-9%”
Currency-neutral adjusted diluted EPS growth (FY2026): “We are forecasting currency-neutral adjusted diluted EPS growth of 7.5%-9.5%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 41.5B | 40.6B | 37.9B | 35.2B | 31.8B | 31.4B |
| Net Income | 11.1B | 11.3B | 7.0B | 7.8B | 9.0B | 9.1B |
| EPS | $5.25 | $7.26 | $4.52 | $5.02 | $5.81 | $5.83 |
| Free Cash Flow | 10.7B | 10.7B | 10.8B | 7.9B | 9.7B | 11.2B |
| ROIC | 32.8% | 37.1% | 31.5% | 27.5% | 44.1% | 116.5% |
| Gross Margin | 67.3% | 67.1% | 64.8% | 63.3% | 64.1% | 68.1% |
| Debt/Equity | 0.00 | -4.96 | -3.94 | -4.33 | -4.88 | -2.75 |
| Dividends/Share | $4.18 | $5.64 | $5.30 | $5.14 | $5.04 | $4.90 |
| Operating Income | 15.2B | 14.9B | 13.4B | 11.6B | 12.2B | 13.0B |
| Operating Margin | 36.7% | 36.6% | 35.4% | 32.9% | 38.6% | 41.3% |
| ROE | 0.0% | -104.1% | -61.2% | -77.2% | -94.7% | -90.1% |
| Shares Outstanding | 2,109M | 1,559M | 1,556M | 1,552M | 1,553M | 1,562M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 80.1B | 73.9B | 75.0B | 78.1B | 29.6B | 29.8B | 28.7B | 31.4B | 31.8B | 35.2B | 37.9B | 40.6B | 41.5B |
| Gross Margin | 24.1% | 23.6% | 23.1% | 23.5% | 63.7% | 64.7% | 66.7% | 68.1% | 64.1% | 63.3% | 64.8% | 67.1% | 67.3% |
| R&D | 433M | 423M | 429M | 453M | 383M | 465M | 495M | 617M | 642M | 709M | 759M | 756M | 756M |
| SG&A | 165M | 162M | 161M | 164M | 7.5B | 8.8B | 7.5B | 8.4B | 8.1B | 10.7B | 11.1B | 12.4B | 12.4B |
| EBIT | 11.7B | 10.6B | 10.9B | 11.6B | 11.4B | 10.5B | 11.7B | 13.0B | 12.2B | 11.6B | 13.4B | 14.9B | 15.2B |
| Op. Margin | 14.6% | 14.4% | 14.5% | 14.8% | 38.4% | 35.3% | 40.7% | 41.3% | 38.6% | 32.9% | 35.4% | 36.6% | 36.7% |
| Net Income | 7.5B | 6.9B | 7.0B | 6.0B | 7.9B | 7.2B | 8.0B | 9.1B | 9.0B | 7.8B | 7.0B | 11.3B | 11.1B |
| Net Margin | 9.4% | 9.3% | 9.3% | 7.7% | 26.7% | 24.0% | 28.0% | 29.0% | 28.4% | 22.1% | 18.6% | 27.8% | 26.7% |
| Non-Recurring | 391M | 68M | 0 | 10M | 6.0M | 541M | 149M | 216M | 0 | 743M | 77M | 190M | 168M |
| Returns on Capital | |||||||||||||
| ROIC | 50.4% | 56.8% | 65.6% | 53.6% | 66.2% | 62.0% | 73.1% | 116.5% | 44.1% | 27.5% | 31.5% | 37.1% | 32.8% |
| ROE | -73.5% | -53.1% | -53.7% | -48.7% | -64.5% | -59.6% | -66.6% | -90.1% | -94.7% | -77.2% | -61.2% | -104.1% | 0.0% |
| ROA | 20.4% | 19.9% | 19.7% | 15.1% | 19.1% | 17.3% | 18.3% | 22.1% | 17.5% | 12.3% | 11.1% | 17.3% | 16.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 7.7B | 7.9B | 8.1B | 8.9B | 9.5B | 10.1B | 9.8B | 12.0B | 10.8B | 9.2B | 12.2B | 12.2B | 12.2B |
| Free Cash Flow | 6.6B | 6.9B | 6.9B | 7.4B | 8.0B | 9.2B | 9.2B | 11.2B | 9.7B | 7.9B | 10.8B | 10.7B | 10.7B |
| Owner Earnings | 6.7B | 7.0B | 7.2B | 7.9B | 8.4B | 9.0B | 8.7B | 11.0B | 9.6B | 7.6B | 10.2B | 10.0B | 10.0B |
| CapEx | 1.2B | 960M | 1.2B | 1.5B | 1.4B | 852M | 602M | 748M | 1.1B | 1.3B | 1.4B | 1.6B | 1.5B |
| Maint. CapEx | 889M | 754M | 743M | 875M | 989M | 964M | 981M | 998M | 1.1B | 1.4B | 1.8B | 2.0B | 2.0B |
| Growth CapEx | 264M | 206M | 429M | 673M | 447M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 889M | 754M | 743M | 875M | 989M | 964M | 981M | 998M | 1.1B | 1.4B | 1.8B | 2.0B | 2.0B |
| CapEx/OCF | 14.9% | 12.2% | 14.5% | 17.4% | 15.2% | 8.4% | 6.1% | 6.3% | 10.0% | 14.4% | 11.8% | 12.8% | 12.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 6.0B | 6.3B | 6.4B | 6.5B | 6.9B | 7.2B | 7.4B | 7.6B | 7.8B | 8.0B | 8.2B | 8.6B | 8.8B |
| Dividend Yield | 8.1% | 8.2% | 6.9% | 5.9% | 7.4% | 8.0% | 8.1% | 6.5% | 6.1% | 6.0% | 5.2% | 3.6% | 2.2% |
| Share Buybacks | 3.8B | 48M | 0 | 0 | 0 | 0 | 0 | 775M | 209M | 0 | 0 | 0 | 0 |
| Buyback Yield | 5.0% | 0.1% | N/A | N/A | N/A | N/A | N/A | 0.6% | 0.2% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 167M | 146M | 160M | 128M | 128M | 160M | 160M | N/A | 155M | 193M | 195M | 208M | 203M |
| Debt Repayment | 1.2B | 1.2B | 2.4B | 2.6B | 2.5B | 4.0B | 4.0B | 3.0B | 2.7B | 2.6B | 4.8B | 5.4B | 5.4B |
| Balance Sheet | |||||||||||||
| Net Debt | 27.8B | 25.1B | 24.8B | 25.9B | 25.2B | 24.9B | 25.0B | 18.8B | 40.5B | 45.5B | 42.1B | 44.7B | 46.5B |
| Cash & Equiv. | 1.7B | 3.4B | 4.2B | 8.4B | 6.6B | 6.9B | 7.3B | 4.5B | 3.2B | 3.1B | 4.2B | 4.9B | 5.5B |
| Long-Term Debt | 26.9B | 25.3B | 25.9B | 31.3B | 27.0B | 26.7B | 28.2B | 24.8B | 34.9B | 41.2B | 42.2B | 45.1B | 43.8B |
| Debt/Equity | -2.33 | -2.15 | -2.29 | -2.84 | -2.55 | -2.75 | -2.57 | -2.75 | -4.88 | -4.33 | -3.94 | -4.96 | 0.00 |
| Interest Coverage | 10.0 | 9.4 | 10.2 | 10.6 | 13.3 | 13.2 | 16.0 | 20.7 | 15.9 | 7.6 | 7.6 | 9.4 | 1016.1 |
| Equity | -12.6B | -13.2B | -12.7B | -12.1B | -12.5B | -11.6B | -12.6B | -10.1B | -9.0B | -11.2B | -11.8B | -10.0B | -9.3B |
| Total Assets | 35.2B | 34.0B | 36.9B | 43.0B | 39.8B | 42.9B | 44.8B | 41.3B | 61.7B | 65.3B | 61.8B | 69.2B | 68.9B |
| Total Liabilities | 46.4B | 45.4B | 47.8B | 53.2B | 50.5B | 52.5B | 55.4B | 49.5B | 68.0B | 74.8B | 71.7B | 77.2B | 76.2B |
| Intangibles | 3.0B | 2.6B | 2.5B | 2.4B | 2.3B | 2.1B | 2.0B | 2.8B | 6.7B | 9.9B | 11.3B | 10.9B | 10.5B |
| Retained Earnings | 29.2B | 29.8B | 30.4B | 29.9B | 31.0B | 31.0B | 31.6B | 33.1B | 34.3B | 34.1B | 32.9B | 35.4B | 35.5B |
| Working Capital | 372M | 418M | 1.1B | 5.6B | 2.3B | 1.7B | 1.9B | -1.5B | -7.7B | -6.6B | -2.7B | -1.1B | -620M |
| Current Assets | 15.5B | 15.8B | 17.6B | 21.6B | 19.4B | 20.5B | 21.5B | 17.7B | 19.6B | 19.8B | 20.2B | 24.4B | 25.6B |
| Current Liabilities | 15.1B | 15.4B | 16.5B | 16.0B | 17.2B | 18.8B | 19.6B | 19.3B | 27.3B | 26.4B | 22.9B | 25.4B | 26.2B |
| Per Share Data | |||||||||||||
| EPS | 4.76 | 4.42 | 4.48 | 3.88 | 5.08 | 4.61 | 5.16 | 5.83 | 5.81 | 5.02 | 4.52 | 7.26 | 5.25 |
| Owner EPS | 4.25 | 4.48 | 4.61 | 5.08 | 5.37 | 5.77 | 5.57 | 7.02 | 6.16 | 4.91 | 6.58 | 6.43 | 4.72 |
| Book Value | -8.02 | -8.52 | -8.16 | -7.77 | -8.00 | -7.45 | -8.07 | -6.47 | -5.77 | -7.23 | -7.55 | -6.41 | -4.40 |
| Cash Flow/Share | 4.92 | 5.06 | 5.19 | 5.73 | 6.09 | 6.49 | 6.30 | 7.66 | 6.96 | 5.93 | 7.85 | 7.85 | 6.21 |
| Dividends/Share | 3.88 | 4.04 | 4.12 | 4.22 | 4.49 | 4.62 | 4.74 | 4.90 | 5.04 | 5.14 | 5.30 | 5.64 | 4.18 |
| Shares Out. | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B | 2.1B |
| Valuation | |||||||||||||
| P/E Ratio | 10.1 | 12.2 | 12.9 | 17.8 | 9.2 | 13.8 | 12.6 | 13.3 | 15.1 | 17.2 | 26.0 | 22.2 | 36.8 |
| P/FCF | 11.5 | 12.1 | 13.0 | 14.6 | 9.1 | 10.7 | 11.0 | 10.8 | 14.0 | 17.0 | 16.9 | 23.5 | 38.2 |
| EV/EBIT | 8.7 | 9.9 | 10.2 | 10.8 | 8.0 | 11.1 | 10.1 | 10.8 | 14.2 | 15.3 | 16.4 | 19.5 | 29.8 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 0.9 | 1.0 | 1.2 | 3.8 | 3.1 | 3.0 | 3.2 | 3.7 | 4.0 | 3.8 | 4.2 | 6.0 | 9.8 |
| FCF Yield | 8.7% | 8.2% | 7.7% | 6.9% | 11.0% | 9.3% | 9.1% | 9.3% | 7.1% | 5.9% | 5.9% | 4.2% | 2.6% |
| Market Cap | 76.0B | 83.8B | 89.8B | 107.4B | 72.9B | 99.1B | 101.1B | 121.2B | 136.9B | 134.7B | 183.1B | 251.7B | 407.1B |
| Avg. Price | 47.55 | 49.09 | 59.44 | 71.04 | 59.56 | 57.66 | 58.65 | 75.04 | 82.47 | 85.36 | 101.73 | 155.60 | 193.00 |
| Year-End Price | 48.28 | 53.91 | 57.73 | 69.05 | 46.78 | 63.59 | 64.76 | 77.56 | 87.93 | 86.53 | 117.31 | 161.05 | 193.00 |
Philip Morris International Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Philip Morris International Inc. trades at 26.6x trailing earnings, compared to its 15-year median P/E of 14.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 28.2x vs a median of 13.5x. The company's 5-year average ROIC is 51.4% with a gross margin of 65.5%. Total shareholder yield (dividends) is 2.2%. At current prices, the estimated annualized return to fair value is +0.7%.
Philip Morris International Inc. (PM) reported annual revenue of $40.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Philip Morris International Inc. (PM) has a net profit margin of 27.8%. This is a strong margin indicating high profitability.
Philip Morris International Inc. (PM) generated $10.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Philip Morris International Inc. (PM) reported earnings per share (EPS) of $7.26 in its most recent fiscal year.
Philip Morris International Inc. (PM) has a return on equity (ROE) of -104.1%. A negative ROE may indicate losses or negative equity.
Philip Morris International Inc. (PM) has a 5-year average gross margin of 65.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for Philip Morris International Inc. (PM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Philip Morris International Inc. (PM) has a book value per share of $-6.41, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong underlying growth across all three smoke-free categories—IQOS, ZYN, and VEEV—with high single-digit volume progression and double-digit adjusted in-market sales growth, supported by innovation launches including ZYN Ultra pending FDA authorization. Combustible volumes are forecast to decline around 3% in 2026 due to excise tax impacts in India and Mexico and comparisons in Turkey, but pricing is expected to remain robust at approximately 6% variance, with the company maintaining pricing power led by Marlboro. The company anticipates organic net revenue growth of 5%–7% and organic operating income growth of 7%–9% for 2026, reflecting continued positive smoke-free mix, operating leverage, and cost efficiencies, while maintaining significant investment behind the smoke-free portfolio. Strong cash generation is expected to support deleveraging toward a target leverage ratio of close to 2x by end of 2026, with the dividend payout approaching the company's objective of around 75% of adjusted diluted EPS, providing capacity for shareholder returns.
Based on recent SEC filings and earnings calls, Philip Morris International Inc. (PM) has provided the following forward guidance: Organic net revenue growth: 5%–7% (FY2026); Organic operating income growth: 7%–9% (FY2026); Currency-neutral adjusted diluted EPS growth: 7.5%–9.5% (FY2026); Adjusted diluted EPS (dollar terms): $8.36–$8.51 (FY2026); Operating cash flow: ~$13.5 billion (FY2026), plus 3 additional metrics.
Adjusted diluted EPS (dollar terms) (FY2026): “This results in an updated adjusted diluted EPS forecast of $8.36-$8.51 or +10.9% to +12.9% growth in dollar terms”
Operating cash flow (FY2026): “We expect a significant acceleration in operating cash flow growth at around $13.5 billion at prevailing exchange rates and subject to year-end working capital requirements”
Cigarette volume decline (FY2026): “For combustibles, we forecast a cigarette decline of around 3%”
Combustible pricing variance (FY2026): “For 2026, we forecast a combustible pricing variance of around +6%”
Leverage ratio target (End of 2026): “we target a leverage ratio of close to 2x by the end of 2026 at prevailing exchange rates”