Philip Morris International Inc. (NYSE:PM) shares traded higher over the last trading session, gaining 1.18% on 12/08/20. The shares fell to a low of $80.88 before closing at $82.64. Intraday shares traded counted 5.59 million, which was -17.29% lower than its 30-day average trading volume of 4.77M. PM’s previous close was $81.68 while the outstanding shares total 1.56B. The firm has a beta of 0.78, a 12-month trailing P/E ratio of 16.77, and a growth ratio of 2.92. The stock’s Relative Strength Index (RSI) is 69.95, with weekly volatility at 2.07% and ATR at 1.62. The PM stock’s 52-week price range has touched low of $56.01 and a $90.17 high.
Investors have identified the Tobacco company Philip Morris International Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $125.11 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Philip Morris International Inc. (PM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PM, the company has in raw cash 4.82 billion on their books with 2.14 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 17.45 billion total, with 15.53 billion as their total liabilities.
PM were able to record 6.19 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by -2.04 billion. In cash movements, the company had a total of 6.65 billion as operating cash flow.
Potential earnings growth for Philip Morris International Inc. (PM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Philip Morris International Inc. recorded a total of 7.45 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.63% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 10.68%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.42 billion trying to sell their products during the last quarter, with the result yielding a gross income of 5.03 billion. This allows shareholders to hold on to 1.56B with the recently reported earning now reading 1.56 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (1.42 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PM sounds very interesting.
Is the stock of PM attractive?
In related news, Pres., Latin America & Canada, Masseroli Mario sold 1,500 shares of the company’s stock in a transaction that recorded on Aug 31. The sale was performed at an average price of 80.10, for a total value of 120,152. As the sale deal closes, the Director, CAMILLERI LOUIS C now sold 37,500 shares of the company’s stock, valued at 2,906,153. Also, Director, CAMILLERI LOUIS C sold 37,500 shares of the company’s stock in a deal that was recorded on Aug 20. The shares were price at an average price of 77.97 per share, with a total market value of 2,923,826. Following this completion of acquisition, the Pres Ext Aff & Gen Counsel, FIRESTONE MARC S now holds 17,000 shares of the company’s stock, valued at 1,325,745. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.19%.
13 out of 19 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Philip Morris International Inc.. 0 analysts has assigned a Sell rating on the PM stock. The 12-month mean consensus price target for the company’s shares has been set at $90.50.