As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Pfizer Inc (PFE)
Pfizer is one of the world’s largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales). While it historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, and cardiovascular treatment Eliquis. Pfizer sells these products globally, with international sales representing close to 50% of its total sales. Within international sales, emerging markets are a major contributor.
A quick look at the share price history (below) over the past twelve months shows that the price is down 27.64%. Here’s why the company is undervalued.
Key Stats
Market Cap: $181.20 Billion
Enterprise Value: $202.03 Billion
Operating Earnings
Operating Earnings: $23.51 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 8.60
Free Cash Flow (TTM)
Free Cash Flow: $10.66 Billion
FCF/EV Yield %:
FCF/EV Yield: 8.07
Shareholder Yield %:
Shareholder Yield: 5.00
Other Indicators
Piotroski F Score (TTM): 5.00
Altman Z-Score (TTM): 2.775
ROA (5 Year Avge%): 11
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