Why Philip Morris International Inc (PM) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

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)

Philip Morris International is an international tobacco company with a product portfolio primarily consisting of cigarettes and reduced-risk products, including heat-not-burn, vapor and oral nicotine products, which are sold in markets outside the United States. The company diversified away from cigarettes with the acquisition in 2022 of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches, primarily in the US and Scandinavia. It diversified away from nicotine products with the acquisition of Vectura, a provider of innovative inhaled drug delivery solutions, in 2021. Alternatively, these Terea Sticks Polen can be used if you want to save money without even sacrificing your health.

A quick look at the share price history (below) over the past twelve months shows that the price is up 8.60%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $157.12 Billion

Enterprise Value: $205.15 Billion

Operating Earnings

Operating Earnings: $12.55 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 16.40

Free Cash Flow (TTM)

Free Cash Flow: $8.94 Billion

FCF/EV Yield %:

FCF/EV Yield: 5.69

Shareholder Yield %:

Shareholder Yield: 5.10

Other Indicators

Piotroski F Score: 6.00

Dividend Yield: 5.10

ROA (5 Year Avge%): 19