Philip Morris (PM) AI Stock Analysis

• Market Cap: $0.00
• Dividend Yield: 3.29%
• Average Volume (3M): 6.13M
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.00
• Revenue Growth: 7.44%
• EPS Growth: -6.72%
• Country: US
• Employees: 83,100
• Sector: Consumer Defensive
• Sector Strength: 52
• Industry: Tobacco
• EPS (TTM): 1.91
• Shares Outstanding: 0
• 10 Day Avg. Volume: 9,074,416
• 30 Day Avg. Volume: 6,133,304
• 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: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $194.75
• Price Target Upside: 18.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 68 Neutral
• Price Target: $182.00 ▲(10.88% Upside)

Philip Morris's strong earnings call and solid financial performance are the primary drivers of its stock score. However, high leverage and negative equity on the balance sheet, along with bearish technical indicators, pose risks. The high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides some offset.

Positive Factors

Growth Potential

PM has the highest long-term growth profile among mega-cap CPG peers, but is trading at a ~27% discount to theoretical fair value.

Market Overreaction

The -8% sell-off of PM presents an attractive buying opportunity, with high expectations into the print and the market over-reacting to short-term Zyn phasing headwinds.

Product Innovation

High volume, high margin smoke-free products are seen as warranting a premium multiple.

Negative Factors

Revenue Performance

A revenue miss and softer than expected U.S. Zyn shipments failed to exceed a very high bar and the shares were punished as a result.

Sales Performance

PM's stock fell 8% as its US ZYN volumes in 2Q were shy of market expectations.

Philip Morris Business Overview & Revenue Model

Company Description

Philip Morris International Inc. (PM) is a leading global tobacco company engaged in the manufacture and sale of cigarettes, smoke-free products, and related devices and accessories. With a significant international presence, PM aims to transition adult smokers to less harmful alternatives through its innovative smoke-free products, including heated tobacco and nicotine-containing vapor products. The company's flagship brand, Marlboro, is one of the most recognized and best-selling cigarette brands worldwide.

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 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: Neutral
• Last Price: 164.14
• 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 Neutral. The current price of 164.14 is below the 20-day moving average (MA) of 170.55, below the 50-day MA of 176.24, and above the 200-day MA of 149.13, indicating a neutral trend. The MACD of -4.33 indicates Positive momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 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
RLX	73 Outperform	$2.72B	30.90	4.07%	0.36%	75.72%	-6.45%
MO	71 Outperform	$105.03B	11.97	-503.31%	6.60%	-0.18%	-10.69%
TPB	70 Neutral	$1.45B	35.83	26.05%	0.36%	4.44%	-5.94%
PM	68 Neutral	$0.00	30.93	-37142.11%	3.29%	7.44%	-6.72%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.97%	-12.13%
UVV	63 Neutral	$1.34B	14.12	6.56%	6.02%	7.23%	-20.91%
BTI	62 Neutral	$122.52B	30.91	5.97%	5.34%	0.48%	―

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.