Philip Morris (PM) AI Stock Analysis

• Market Cap: $233.20B
• Dividend Yield: 3.68%
• Average Volume (3M): 7.37M
• Price to Earnings (P/E): 27.1
• Beta (1Y): <0.01
• Revenue Growth: 7.72%
• EPS Growth: -12.45%
• Country: US
• Employees: 83,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 2.24
• Shares Outstanding: 1,556,638,800
• 10 Day Avg. Volume: 9,043,696
• 30 Day Avg. Volume: 7,366,378
• PEG Ratio: -2.72
• Price to Book (P/B): -15.92
• Price to Sales (P/S): 4.94
• P/FCF Ratio: 17.36
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 7.53
• Enterprise Value/Gross Profit: 11.36
• Enterprise Value/Ebitda: 17.00
• 1Y Price Target: $190.00
• Price Target Upside: 26.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 62 Neutral
• Price Target: $162.00 ▲(8.14% Upside)

Philip Morris's overall score is driven by strong earnings performance and strategic growth in the smoke-free segment, despite high leverage and valuation concerns. The technical indicators suggest caution, but the positive earnings outlook and dividend yield provide a balanced investment case.

Positive Factors

Smoke-Free Segment Growth

The strong growth in the smoke-free segment indicates a successful transition towards reduced-risk products, aligning with global health trends and potentially increasing market share in the long term.

Geographic Expansion

Expanding into new markets like Taiwan enhances Philip Morris's global footprint, supporting revenue diversification and long-term growth prospects through increased market penetration.

Record EPS Growth

Record EPS growth driven by smoke-free products and cost efficiencies indicates strong operational performance and profitability, supporting shareholder value over the long term.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Elevated Commercial Spending

Increased commercial spending could pressure short-term profitability, although it may support long-term brand development and market positioning if managed effectively.

Inventory Adjustments Impact

Inventory adjustments could lead to short-term revenue volatility, affecting quarterly performance and requiring careful management to maintain supply chain efficiency.

Philip Morris Business Overview & Revenue Model

Company Description

Philip Morris International Inc. (PM) is a leading global tobacco company, primarily known for its production and marketing of cigarettes and smoke-free products. The company operates in several segments, with a focus on its core brands, including Marlboro, and its innovative reduced-risk products such as IQOS. Philip Morris is committed to transitioning to a smoke-free future and investing in the development of alternatives to traditional tobacco products, positioning itself as a key player in the evolving tobacco landscape.

How the Company Makes Money

Philip Morris generates revenue primarily through the sale of its tobacco products, which include both traditional cigarettes and reduced-risk alternatives. The company’s key revenue streams include the sale of its flagship cigarette brands, particularly Marlboro, and the growing segment of smoke-free products such as IQOS and heated tobacco units. Additionally, Philip Morris benefits from international markets, where it has established a strong presence. The company also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Factors contributing to its earnings include brand loyalty, regulatory compliance in various markets, and ongoing investments in product innovation aimed at reducing health risks associated with tobacco consumption.

Philip Morris Financial Statement Overview

Summary

Philip Morris demonstrates strong profitability and cash flow generation, supported by consistent revenue growth. However, the company's high leverage and negative equity are significant concerns, potentially impacting long-term financial stability.

Income Statement

Philip Morris shows a solid revenue growth rate of 2.4% TTM, with strong gross and EBIT margins at 66.3% and 39.3%, respectively. However, the net profit margin has slightly decreased to 21.6% TTM from 22.1% in 2023. Overall, the company demonstrates stable profitability with consistent revenue growth.

Balance Sheet

The company has a high debt-to-equity ratio of -4.59 TTM, indicating significant leverage. The negative stockholders' equity suggests financial instability, and the return on equity is also negative. While total assets have grown, the high leverage poses a potential risk.

Cash Flow

Philip Morris has shown a healthy free cash flow growth rate of 12.6% TTM, with a strong free cash flow to net income ratio of 0.86. The operating cash flow to net income ratio is 1.27, indicating efficient cash generation. However, the cash flow stability is somewhat offset by the high leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.94B	37.88B	35.17B	31.76B	31.41B	28.69B
Gross Profit	26.47B	24.55B	22.28B	20.36B	21.38B	19.13B
EBITDA	17.68B	15.75B	13.37B	13.48B	13.97B	12.66B
Net Income	8.61B	7.03B	7.79B	9.05B	9.11B	8.06B
Balance Sheet
Total Assets	67.06B	61.78B	65.30B	61.68B	41.29B	44.81B
Cash, Cash Equivalents and Short-Term Investments	4.04B	4.22B	3.06B	3.21B	4.50B	7.28B
Total Debt	50.08B	45.70B	47.91B	43.12B	27.81B	31.54B
Total Liabilities	76.05B	71.65B	74.75B	67.99B	49.50B	55.45B
Stockholders Equity	-10.91B	-11.75B	-11.22B	-8.96B	-10.11B	-12.57B
Cash Flow
Free Cash Flow	10.12B	10.77B	7.88B	9.73B	11.22B	9.21B
Operating Cash Flow	11.53B	12.22B	9.20B	10.80B	11.97B	9.81B
Investing Cash Flow	-3.10B	-1.09B	-3.60B	-15.68B	-2.36B	-1.15B
Financing Cash Flow	-4.10B	-9.48B	-5.58B	3.81B	-11.98B	-8.50B

Philip Morris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PM, the sentiment is Negative. The current price of 149.81 is below the 20-day moving average (MA) of 156.27, below the 50-day MA of 160.73, and below the 200-day MA of 159.26, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 36.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PM.

Philip Morris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MO	―	$106.30B	12.23	―	6.51%	-0.18%	-10.69%
RLX	―	$2.96B	29.56	4.56%	0.33%	61.64%	16.76%
UVV	―	$1.28B	12.52	7.20%	6.26%	4.11%	-15.50%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	―	$233.20B	27.14	―	3.68%	7.72%	-12.45%
TPB	―	$1.64B	38.11	26.05%	0.33%	4.44%	-5.94%
BTI	―	$113.47B	29.03	5.97%	5.70%	0.48%	―

Philip Morris Corporate Events

Philip Morris International’s Strong Q3 2025 Performance

Philip Morris International (PMI) is a leading global consumer goods company focused on delivering a smoke-free future with a diverse portfolio of smoke-free products including heat-not-burn, nicotine pouches, and e-vapor products, available in 100 markets worldwide.

Philip Morris International’s Earnings Call Highlights Robust Growth

Philip Morris International’s recent earnings call reflected a strong overall performance, particularly in its smoke-free segment, which continues to drive growth and profitability. The company’s strategic investments in geographic expansion and brand development are positioning it for sustained growth. Despite challenges such as elevated commercial spending and expected inventory adjustments, the positive aspects significantly outweigh the challenges, indicating a robust growth trajectory.

Philip Morris Boosts Dividend Amid Smoke-Free Transition

On September 19, 2025, Philip Morris International announced an 8.9% increase in its quarterly dividend to $1.47 per share, payable on October 20, 2025. This marks a consistent annual dividend increase since 2008, reflecting the company’s strong financial performance and commitment to shareholder returns. The announcement underscores PMI’s strategic focus on transitioning to smoke-free products, which accounted for 41% of its total net revenues in the first half of 2025, and its ongoing efforts to innovate and expand its market presence.

The most recent analyst rating on (PM) stock is a Hold with a $176.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.

Philip Morris Reaffirms 2025 EPS Forecast at Conference

On September 2, 2025, Philip Morris International participated in the Barclays Global Consumer Staples Conference, where CEO Jacek Olczak reaffirmed the company’s 2025 full-year EPS forecast, projecting a growth of 13% to 15% in adjusted diluted EPS. Despite increasing competition in smoke-free products, PMI reported strong growth in its IQOS and ZYN products, with significant momentum in the U.S. market. The company highlighted better-than-expected volume dynamics in Turkey and Egypt and continued strong international growth for its smoke-free products.

The most recent analyst rating on (PM) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Philip Morris stock, see the PM Stock Forecast page.