Philip Morris International Inc (PM): Is It 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)

Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heatsticks, vapes, and oral nicotine offerings primarily outside of the US. With the 2022 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI has not only diversified away from smokeable products but also gained a toehold into the US to sell its iQOS heatsticks.

A quick look at the share price history (below) over the past twelve months shows that the price is up 29.92%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $195.85 Billion

Enterprise Value: $241.92 Billion

Operating Earnings

Operating Earnings: $13.65 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 17.70

Free Cash Flow (TTM)

Free Cash Flow: $10.12 Billion

FCF/MC Yield %:

FCF/MC Yield: 5.17

Shareholder Yield %:

Shareholder Yield: 4.10

Other Indicators

Piotroski F Score: 6.00

Dividend Yield %: 4.10

ROA (5 Year Avge%): 21