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 acquisition in 2022 of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches, primarily in the US and Scandinavia. It diversified away from nicotine products with the acquisition of Vectura, a provider of innovative inhaled drug delivery solutions, in 2021. Alternatively, these Terea Sticks Polen can be used if you want to save money without even sacrificing your health.
A quick look at the share price history (below) over the past twelve months shows that the price is up 8.60%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $157.12 Billion
Enterprise Value: $205.15 Billion
Operating Earnings
Operating Earnings: $12.55 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 16.40
Free Cash Flow (TTM)
Free Cash Flow: $8.94 Billion
FCF/EV Yield %:
FCF/EV Yield: 5.69
Shareholder Yield %:
Shareholder Yield: 5.10
Other Indicators
Piotroski F Score: 6.00
Dividend Yield: 5.10
ROA (5 Year Avge%): 19
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