Philip Morris International Inc. (PM:NYE) Analysts rate with a Strong Buy, $110

STA Research
by: STA Research
Philip Morris International stock

Based on the Philip Morris International Inc. stock forecasts from 7 analysts, the average analyst target price for Philip Morris International Inc. is USD 110.09 over the next 12 months. Philip Morris International Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Philip Morris International Inc. is Slightly Bullish, which is based on 8 positive signals and 6 negative signals. At the last closing, Philip Morris International Inc.’s stock price was USD 102.69. Philip Morris International Inc.’s stock price has changed by +0.92% over the past week, +10.11% over the past month and +8.54% over the last year.

Just recently, Bank of America raised the target on the stock to $117 from $107, and maintained the Buy rating on the stock.

Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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