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)
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heatsticks, vapes, and oral nicotine offerings primarily outside of the US. With the 2022 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI has not only diversified away from smokeable products but also gained a toehold into the US to sell its iQOS heatsticks.
A quick look at the share price history (below) over the past twelve months shows that the price is up 29.92%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $195.85 Billion
Enterprise Value: $241.92 Billion
Operating Earnings
Operating Earnings: $13.65 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 17.70
Free Cash Flow (TTM)
Free Cash Flow: $10.12 Billion
FCF/MC Yield %:
FCF/MC Yield: 5.17
Shareholder Yield %:
Shareholder Yield: 4.10
Other Indicators
Piotroski F Score: 6.00
Dividend Yield %: 4.10
ROA (5 Year Avge%): 21
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