Last Updated: 07 Nov 2024
Executive Summary
Philip Morris International Inc. (PM) is a leading multinational cigarette and tobacco manufacturer with a strong global presence. The company's flagship brand, Marlboro, is one of the most recognized and best-selling tobacco products in the world. PM's financial performance has been solid, with consistent revenue and earnings growth. The company is also a major dividend payer, with a dividend yield of 0.0414%.
Company Overview
Philip Morris International Inc. was founded in 2008 as a spin-off from Altria Group. The company is headquartered in New York City and has operations in over 180 countries. PM's primary business is the manufacture and sale of cigarettes, but the company also produces other tobacco products such as cigars and smokeless tobacco.
Fundamental Analysis
PM's financial performance has been solid in recent years. The company's revenue has grown from $31.8 billion in 2015 to $37.2 billion in 2023. Net income has also increased from $6.4 billion in 2015 to $8.1 billion in 2023. PM's profit margins have been stable, with an operating margin of 42.9% in 2023.
The company's financial strength is supported by its strong cash flow generation. PM's free cash flow was $9.1 billion in 2023. The company uses its free cash flow to pay dividends, reduce debt, and invest in new growth initiatives.
Technical Analysis
PM's stock price has been in a bullish trend in recent months. The stock price broke out above its 50-day moving average in early 2023 and has since continued to trend higher. The stock price is currently trading above its 200-day moving average, which is a sign of strength.
The relative strength index (RSI) is a technical indicator that measures the momentum of a stock's price. The RSI is currently in the overbought range, which suggests that the stock may be due for a pullback. However, the RSI is not a perfect indicator, and it is possible that PM's stock price will continue to rise.
Short Term Outlook
The short-term outlook for PM's stock price is positive. The stock price is in a bullish trend and is trading above its key moving averages. The RSI is in the overbought range, which suggests that the stock may be due for a pullback. However, the RSI is not a perfect indicator, and it is possible that PM's stock price will continue to rise.
Long Term Outlook
The long-term outlook for PM's stock price is also positive. The company has a strong track record of financial performance and is well-positioned to continue to grow in the future. PM's dividend yield is also attractive, which makes the stock appealing to income investors.
Analyst Recommendations
The majority of analysts have a positive outlook on PM's stock. The consensus analyst target price is $137.34, which is 9.7% above the current stock price. Four analysts have a strong buy rating on the stock, six have a buy rating, three have a hold rating, and one has a sell rating.
Conclusion
Philip Morris International Inc. is a leading multinational cigarette and tobacco manufacturer with a strong global presence. The company's financial performance has been solid, and the stock price is in a bullish trend. The consensus analyst target price is $137.34, which is 9.7% above the current stock price. The majority of analysts have a positive outlook on the stock, and the long-term outlook is also positive.
