Philip Morris (PM) AI Stock Analysis

• Market Cap: $287.88B
• Dividend Yield: 2.93%
• Average Volume (3M): 5.15M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.15
• Revenue Growth: 6.83%
• EPS Growth: -4.85%
• Country: US
• Employees: 83,100
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Tobacco
• EPS (TTM): 1.69
• Shares Outstanding: 1,556,517,200
• 10 Day Avg. Volume: 5,516,657
• 30 Day Avg. Volume: 5,150,545
• PEG Ratio: 4.99
• Price to Book (P/B): -26.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.98
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 13.24
• Enterprise Value/Ebitda: 5.33
• 1Y Price Target: $187.88
• Price Target Upside: 4.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $206.00 ▲(14.70%Upside)

Philip Morris's strong earnings performance, particularly in smoke-free products, and positive technical indicators drive a favorable outlook. However, high valuation and balance sheet risks warrant caution. The strategic focus on transitioning to a smoke-free future remains a significant positive factor.

Positive Factors

Growth Potential

There is attractive upside for shares supported by the durable growth momentum supported by accretive smoke-free product mix, pricing, and volume leverage.

Market Performance

PM has been a top performer in the US market, led by execution, improving profitability in smoke-free products, ZYN/IQOS volumes, and continued contribution from combustibles to support smoke-free growth.

Regulatory Approval

The likelihood of ZYN receiving MRTP authorization is very high, supported by FDA’s own commentary.

Negative Factors

External Volatility

The analyst's recommendation to boost the price objective by $18 to $200 reflects confidence in PM’s positioning to navigate external volatility and the strength of its operations, yet external factors could still pose risks.

Market Competition

PM has already made great strides in transforming towards a smoke-free business and has solidified itself as the market leader in both heated tobacco and nicotine pouches, but may face challenges from competitors in maintaining this position.

Market Valuation

Philip Morris International is trading at a significant discount to its theoretical fair value, which might indicate potential market skepticism about its future growth.

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 International generates revenue primarily through the sale of its tobacco products, including cigarettes and smoke-free alternatives. The company's revenue streams are largely driven by its portfolio of popular brands, with Marlboro being a significant contributor. PM has been investing in the development and commercialization of reduced-risk products, such as its IQOS platform, which heats rather than burns tobacco, offering a potentially less harmful alternative to traditional smoking. The company leverages its extensive distribution network and strategic partnerships to expand its market reach and enhance sales. Additionally, PM benefits from pricing power in various markets, allowing it to maintain profitability even as global cigarette consumption declines. The company is also focused on expanding its presence in emerging markets where smoking rates remain high, thereby bolstering its revenue potential.

Philip Morris Financial Statement Overview

Summary

Philip Morris demonstrates strong profitability with robust profit margins and cash flow generation. However, the balance sheet's negative equity and high leverage present significant financial risks that require careful management. While the company shows stable financial performance, these risks are notable.

Income Statement

Philip Morris demonstrates strong profitability with a consistent increase in gross profit and net income over time. The TTM gross profit margin is approximately 65.1%, and the net profit margin stands at 19.8%. The TTM revenue growth rate compared to the previous year is around 2.36%, indicating steady growth. EBIT and EBITDA margins are robust at 36.4% and 41.8% respectively, showcasing operational efficiency. However, revenue growth is moderate, which is typical for the tobacco industry.

Balance Sheet

The company's balance sheet reveals a negative stockholders' equity, which is a concern as it indicates more liabilities than assets. The debt-to-equity ratio is not calculated due to negative equity, but high total debt suggests significant leverage. The equity ratio is negative due to negative equity, highlighting financial risk. Despite profitability, the leverage position warrants caution.

Cash Flow

Philip Morris displays strong cash flow management with a solid free cash flow of $10.2 billion in the TTM. The operating cash flow to net income ratio is approximately 1.53, indicating efficient cash generation relative to net income. Although the free cash flow growth rate is negative compared to the previous annual period, the company maintains adequate cash flow to cover operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.33B	37.88B	35.17B	31.76B	31.41B	28.69B
Gross Profit	24.95B	24.55B	22.28B	20.53B	21.38B	19.13B
EBITDA	16.03B	16.23B	13.37B	13.79B	14.17B	12.92B
Net Income	7.60B	7.03B	7.79B	9.05B	9.11B	8.06B
Balance Sheet
Total Assets	65.08B	61.78B	65.30B	61.68B	41.29B	44.81B
Cash, Cash Equivalents and Short-Term Investments	4.44B	4.22B	3.06B	3.21B	4.50B	7.28B
Total Debt	49.58B	45.70B	47.91B	43.12B	27.81B	31.54B
Total Liabilities	74.00B	71.65B	74.75B	67.99B	49.50B	55.45B
Stockholders Equity	-10.90B	-11.75B	-11.22B	-8.96B	-10.11B	-12.57B
Cash Flow
Free Cash Flow	10.20B	10.77B	7.88B	9.73B	11.22B	9.21B
Operating Cash Flow	11.63B	12.22B	9.20B	10.80B	11.97B	9.81B
Investing Cash Flow	-1.33B	-1.09B	-3.60B	-15.68B	-2.36B	-1.15B
Financing Cash Flow	-9.95B	-9.48B	-5.58B	6.16B	-11.98B	-8.50B

Philip Morris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 179.60
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 179.6 is below the 20-day moving average (MA) of 181.99, above the 50-day MA of 174.38, and above the 200-day MA of 142.46, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 52.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PM.

Philip Morris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PM	73 Outperform	$287.88B	38.01	-37142.11%	2.93%	6.83%	-4.85%
MO	73 Outperform	$101.89B	10.12	-503.31%	6.81%	-1.03%	25.20%
RLX	73 Outperform	$2.57B	29.10	4.07%	0.37%	75.72%	-6.45%
UVV	68 Neutral	$1.44B	15.73	6.56%	5.44%	7.23%	-20.91%
TPB	68 Neutral	$1.31B	33.10	27.53%	0.40%	3.17%	-2.23%
Sector *	64 Neutral	$26.81B	15.04	-4.04%	3.19%	0.99%	2.60%
BTI	64 Neutral	$105.41B	27.77	5.87%	6.18%	-2.51%	―

Philip Morris Corporate Events

Philip Morris Highlights Smoke-Free Strategy in Europe

On June 24, 2025, Philip Morris International hosted the Europe Investor Focus Event, presenting its strategic focus on smoke-free products and the company’s performance in the European market. The event highlighted PMI’s strong market position, with significant contributions to the EU economy and impressive growth in smoke-free product revenues, despite facing various business risks and regulatory challenges.

The most recent analyst rating on (PM) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.

Philip Morris Declares Quarterly Dividend Amid Smoke-Free Transition

On June 13, 2025, Philip Morris International’s Board of Directors declared a regular quarterly dividend of $1.35 per common share, payable on July 15, 2025. This announcement reflects PMI’s ongoing commitment to shareholder returns while it continues to transition towards a smoke-free future. The company’s strategic focus on smoke-free products and its significant investments in this area underscore its ambition to expand into wellness and healthcare, potentially enhancing its industry positioning and stakeholder value.

The most recent analyst rating on (PM) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.

Philip Morris Issues €1 Billion in Notes

On June 6, 2025, PMI issued €1 billion in aggregate principal amount of Notes, divided equally between 2.750% Notes due 2029 and 3.250% Notes due 2032. The proceeds from this issuance are intended for general corporate purposes, including repaying outstanding commercial paper and meeting working capital requirements. The Notes, which are senior unsecured obligations, are subject to covenants and redemption options, and interest payments will begin in 2026. This financial maneuver is part of PMI’s broader strategy to manage its debt and financial operations effectively, impacting its market positioning and stakeholder relations.

The most recent analyst rating on (PM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.

Philip Morris Reaffirms 2025 Financial Forecast at Conference

On June 3, 2025, Philip Morris International’s CFO, Emmanuel Babeau, participated in the Deutsche Bank Global Consumer Conference, reaffirming the company’s full-year forecast for 2025. PMI projects a reported diluted EPS of $7.01 to $7.14 and an adjusted diluted EPS of $7.36 to $7.49, indicating a growth of 12% to 14%, or 10.5% to 12.5% excluding currency effects. This announcement underscores PMI’s strategic focus on transitioning towards smoke-free products and its commitment to financial growth, which is significant for investors and stakeholders.

The most recent analyst rating on (PM) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.

Philip Morris Holds Annual Shareholder Meeting

On May 7, 2025, Philip Morris International Inc. held its Annual Meeting of Shareholders, where a quorum of 1,269,535,339 shares was represented. All director nominees were elected, executive compensation was approved on an advisory basis, and PricewaterhouseCoopers SA was ratified as the independent auditor for the fiscal year ending December 31, 2025.

Philip Morris Holds 2025 Virtual Annual Meeting

On May 7, 2025, Philip Morris International Inc. held its 2025 Virtual Annual Meeting of Shareholders, where Chairman André Calantzopoulos and CEO Jacek Olczak discussed the company’s excellent performance in 2024 and a strong start to 2025. They highlighted PMI’s achievements in its smoke-free journey, including reaching $15 billion in net revenues from smoke-free products, and the company’s commitment to sustainable growth and shareholder returns. The meeting also saw the election of 11 directors and the approval of executive compensation and auditors. PMI continues to advance its multicategory strategy with leading brands like IQOS, ZYN, and VEEV, reinforcing its position as a global smoke-free champion.