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Why Philip Morris International Inc (PM) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

Thursday, March 28, 2024 · Johnny Hopkins

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:

Philip Morris International Inc (PM)

Philip Morris International is an international tobacco company with a product portfolio primarily consisting of cigarettes and reduced-risk products, including heat-not-burn, vapor and oral nicotine products, which are sold in markets outside the United States. The company diversified away from cigarettes with the 2022 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches, primarily in the U.S. and Scandinavia. It diversified away from nicotine products with the acquisition of Vectura, a provider of innovative inhaled drug delivery solutions, in 2021.

A quick look at the share price history (below) over the past twelve months shows that the price is up 0.18%. Here’s why the company is undervalued.

PM Chart

PM data by YCharts

Key Stats

Market Cap: $147.45 Billion

Enterprise Value: $194.48 Billion

Operating Earnings

Operating Earnings: $12.56 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 15.50

Free Cash Flow (TTM)

Free Cash Flow: $7.88 Billion

FCF/EV Yield %:

FCF/EV Yield: 5.35

Shareholder Yield %:

Shareholder Yield: 5.40

Other Indicators

Piotroski F Score: 6.00

Altman Z-Score (TTM): 2.925

ROA (5 Year Avge%): 19