Pfizer Inc (NYSE: PFE)

Sector: Healthcare Industry: Drug Manufacturers - General CIK: 0000078003
Market Cap 152.10 Bn
P/B 1.85
P/E 6.09
P/S 1.65
ROIC (Qtr) 6.39
Div Yield % 5.95
Rev 1y % (Qtr) -5.92
Total Debt (Qtr) 61.71 Bn
Debt/Equity (Qtr) 0.66

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 13.08B provides exceptional 318.95x coverage of minority interest expenses 41M, showing strong core operations.
  • Operating cash flow of 13.08B provides strong 17.41x coverage of stock compensation 751M, indicating sustainable incentive practices.
  • Robust free cash flow of 10.38B exceeds capital expenditure of 2.70B by 3.84x, indicating strong organic growth funding capability.
  • Tangible assets of 88.31B provide exceptional 95.57x coverage of deferred revenue 924M, showing strong service capability backing.
  • Operating cash flow of 13.08B provides strong 14.15x coverage of deferred revenue 924M, indicating service delivery capability.

Bear case

  • With cash reserves of 1.34B against inventory of 11.47B, the 0.12 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 13.08B provides thin coverage of dividend payments of (9.71B) with a -1.35 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of 3.17B provide weak support for R&D spending of 10.27B, which is 0.31x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.34B provide limited coverage of acquisition spending of 9.86B, which is 0.14x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 13.64B significantly exceed cash reserves of 1.34B, which is 10.16x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Drug Manufacturers - General
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LLY ELI LILLY & Co 940.24 Bn 84.66 19.19 42.51 Bn
2 JNJ Johnson & Johnson 656.09 Bn 49.20 10.65 45.80 Bn
3 AMGN Amgen Inc 389.67 Bn 89.91 26.60 54.59 Bn
4 ABBV AbbVie Inc. 363.54 Bn 129.05 16.59 68.74 Bn
5 MRK Merck & Co., Inc. 320.49 Bn 202.84 7.87 41.37 Bn
6 NVS Novartis Ag 304.60 Bn 21.78 5.37 35.46 Bn
7 AZN Astrazeneca Plc 291.12 Bn 30.97 5.01 32.63 Bn
8 NVO Novo Nordisk A S 219.30 Bn 13.62 4.51 20.59 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.90 2.39
EV to Cash from Ops. EV/CFO 5.45 27.43
EV to Debt EV to Debt 3.06 6.41
EV to EBIT EV/EBIT 6.94 29.56
EV to EBITDA EV/EBITDA 5.74 21.95
EV to Free Cash Flow [EV/FCF] EV/FCF 5.93 39.77
EV to Market Cap EV to Market Cap 1.24 1.28
EV to Revenue EV/Rev 2.04 7.09
Price to Book Value [P/B] P/B 1.85 12.10
Price to Earnings [P/E] P/E 6.09 73.51
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.01 0.92
Dividend Payout Ratio % Div Payout % (Qtr) 99.40 65.92
Dividend per Basic Share Div per Share (Qtr) 1.71 2.81
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 93.70 37.42
Interest Coverage Interest Coverage 0.00 20.26
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.03 -9.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.99 96.72
Dividend Growth (1y) % Div 1y % (Qtr) 2.40 2.18
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 131.14 74.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.80 29.18
EBIT Growth (1y) % EBIT 1y % (Qtr) 137.48 66.23
EBT Growth (1y) % EBT 1y % (Qtr) 137.48 310.53
EPS Growth (1y) % EPS 1y % (Qtr) 126.32 352.41
FCF Growth (1y) % FCF 1y % (Qtr) 26.12 47.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.59 8.06
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.38
Cash Payout Ratio Cash Payout (Qtr) 0.62 0.27
Cash Ratio Cash Ratio (Qtr) 0.04 2.11
Current Ratio Curr Ratio (Qtr) 1.28 6.17
Debt to Equity Ratio Debt/Equity (Qtr) 0.66 -0.40
Interest Cover Ratio Interest Cover Ratio 0.00 20.26
Times Interest Earned Times Interest Earned 0.00 20.26
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.20 -13.61
EBIT Margin % EBIT Margin % (Qtr) 14.56 -10.56
EBT Margin % EBT Margin % (Qtr) 14.56 -25.71
Gross Margin % Gross Margin % (Qtr) 73.40 64.91
Net Profit Margin % Net Margin % (Qtr) 15.70 -34.99