Philip Morris (PM) AI Stock Analysis

• Market Cap: $251.61B
• Dividend Yield: 3.34%
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.07
• Revenue Growth: 7.44%
• EPS Growth: -6.72%
• Country: US
• Employees: 83,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.91
• Shares Outstanding: 1,556,589,400
• 10 Day Avg. Volume: 5,319,606
• 30 Day Avg. Volume: 5,000,396
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 8.54
• Enterprise Value/Gross Profit: 12.98
• Enterprise Value/Ebitda: 20.29
• 1Y Price Target: $193.58
• Price Target Upside: 19.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: $176.00 ▲(8.80% Upside)

Philip Morris's strong earnings call performance and robust income statement are key strengths, driving the stock score. However, high leverage and negative equity on the balance sheet, along with bearish technical indicators and a high P/E ratio, present significant risks.

Positive Factors

Smoke-Free Product Growth

The strong growth in smoke-free products like IQOS indicates a successful transition towards reduced-risk products, aligning with long-term industry trends and consumer preferences for healthier alternatives.

Revenue Growth

Consistent revenue growth, particularly in innovative product segments, demonstrates the company's ability to adapt and expand in a changing market landscape, ensuring sustained business performance.

EPS Growth Forecast

Raising the EPS growth forecast reflects strong business fundamentals and management's confidence in future profitability, which is crucial for long-term investor confidence and financial health.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, which can limit the company's ability to invest in growth opportunities and weather economic downturns, posing a risk to long-term sustainability.

Combustible Volume Declines

Declining cigarette volumes highlight challenges in traditional product lines, which could impact revenue if not offset by growth in smoke-free products, stressing the need for successful product transition.

Currency Volatility Impact

Currency volatility can affect profitability and financial planning, posing a risk to earnings stability and requiring effective hedging strategies to mitigate long-term financial impact.

Philip Morris Business Overview & Revenue Model

Company Description

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 that are sold in markets outside the United States. The company offers its smoke-free products under the HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro, HEETS FROM MARLBORO, Marlboro Dimensions, Marlboro HeatSticks, Parliament HeatSticks, and TEREA brands, as well as the KT&G-licensed brands, Fiit, and Miix. It also sells its products under the Marlboro, Parliament, Bond Street, Chesterfield, L&M, Lark, and Philip Morris brands. In addition, the company owns various cigarette brands, such as Dji Sam Soe, Sampoerna A, and Sampoerna U in Indonesia; and Fortune and Jackpot in the Philippines. The company sells its smoke-free products in 71 markets. Philip Morris International Inc. was incorporated in 1987 and is headquartered in New York, New York.

How the Company Makes Money

Philip Morris generates revenue primarily through the sale of its tobacco products, which include both traditional cigarettes and reduced-risk alternatives. The company’s key revenue streams include the sale of its flagship cigarette brands, particularly Marlboro, and the growing segment of smoke-free products such as IQOS and heated tobacco units. Additionally, Philip Morris benefits from international markets, where it has established a strong presence. The company also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Factors contributing to its earnings include brand loyalty, regulatory compliance in various markets, and ongoing investments in product innovation aimed at reducing health risks associated with tobacco consumption.

Philip Morris Financial Statement Overview

Summary

Philip Morris shows strong revenue growth and profitability margins with a robust income statement. However, high leverage and negative equity on the balance sheet pose significant financial risks. Cash flow generation is efficient, although there's a slight decline in growth.

Income Statement

Philip Morris has demonstrated strong revenue growth with a TTM revenue of $39.01 billion, representing a 2.96% increase from the previous year. The gross profit margin is robust at 65.78%, alongside a healthy EBIT margin of 37.02% and EBITDA margin of 42.07%. However, the net profit margin slightly decreased to 21.06% from 18.57% a year ago, indicating some pressure on net profitability.

Balance Sheet

The balance sheet reflects high leverage with a negative stockholders' equity of -$11.97 billion, resulting in an unfavorable debt-to-equity ratio. The equity ratio is negative, highlighting financial instability. Despite this, the return on equity (ROE) is not applicable due to negative equity, posing a risk to financial health.

Cash Flow

Philip Morris's operating cash flow remains robust at $10.41 billion TTM, with a decrease from the previous year. Nevertheless, FCF remains strong at $8.99 billion, with the free cash flow to net income ratio at 1.09. The operating cash flow to net income ratio is healthy at 1.27, suggesting efficient cash generation with some indication of declining growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.88B	35.17B	31.76B	31.41B	28.69B
Gross Profit	24.55B	22.28B	20.36B	21.38B	19.13B
EBITDA	15.75B	13.37B	13.48B	13.97B	12.66B
Net Income	7.03B	7.79B	9.05B	9.11B	8.06B
Balance Sheet
Total Assets	61.78B	65.30B	61.68B	41.29B	44.81B
Cash, Cash Equivalents and Short-Term Investments	4.22B	3.06B	3.21B	4.50B	7.28B
Total Debt	45.70B	47.91B	43.12B	27.81B	31.54B
Total Liabilities	71.65B	74.75B	67.99B	49.50B	55.45B
Stockholders Equity	-11.75B	-11.22B	-8.96B	-10.11B	-12.57B
Cash Flow
Free Cash Flow	10.77B	7.88B	9.73B	11.22B	9.21B
Operating Cash Flow	12.22B	9.20B	10.80B	11.97B	9.81B
Investing Cash Flow	-1.09B	-3.60B	-15.68B	-2.36B	-1.15B
Financing Cash Flow	-9.48B	-5.58B	3.81B	-11.98B	-8.50B

Philip Morris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PM, the sentiment is Negative. The current price of 161.76 is below the 20-day moving average (MA) of 165.51, below the 50-day MA of 167.86, and above the 200-day MA of 155.57, indicating a neutral trend. The MACD of -1.27 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PM.

Philip Morris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	72 Outperform	1.40B	13.70	6.52%	5.78%	4.11%	-15.50%
MO	71 Outperform	110.05B	12.66	-269.87%	6.44%	-0.18%	-10.69%
RLX	70 Outperform	3.13B	31.27	3.45%	0.31%	61.64%	16.76%
TPB	70 Neutral	1.84B	42.63	19.97%	0.29%	4.44%	-5.94%
PM	67 Neutral	$251.61B	30.67	-37142.11%	3.34%	7.44%	-6.72%
BTI	62 Neutral	121.02B	31.01	6.18%	5.43%	0.48%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Philip Morris Corporate Events

Philip Morris Reaffirms 2025 EPS Forecast at Conference

On September 2, 2025, Philip Morris International participated in the Barclays Global Consumer Staples Conference, where CEO Jacek Olczak reaffirmed the company’s 2025 full-year EPS forecast, projecting a growth of 13% to 15% in adjusted diluted EPS. Despite increasing competition in smoke-free products, PMI reported strong growth in its IQOS and ZYN products, with significant momentum in the U.S. market. The company highlighted better-than-expected volume dynamics in Turkey and Egypt and continued strong international growth for its smoke-free products.

The most recent analyst rating on (PM) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.