Philip Morris International Inc. (PM) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Philip Morris International Inc.

Updated on October 22, 2026 · accounts published on October 21, 2026

Reading of October 21, 2026: A highly profitable business with steady margins

Philip Morris International trades at a P/E of 28.4× over the last 12 months, 45 % above its 10-year median of 19.5× and 26 % above its sector.

• Is Philip Morris International expensive or cheap? Its P/E of 28.4× is 45 % above its 10-year median and higher than in 89 % of the past decade.
• How is the business doing? EPS grew 61 % over the last 12 months on 7.3 % revenue growth, with a 39 % operating margin.
• How strong is the balance sheet? Net debt was 2.5× EBITDA in fiscal 2025, right at the sector's healthy limit; the dividend has risen 11 years in a row.
• What to expect from the next earnings? Analysts expect EPS of $1.94 for the quarter reported on February 5, 2027; 17 of 25 recommend buying.
• Is it as stable as the sector promises? It passes 2 of 8 consumer staples checks; dividend growth of 3.2 % a year since 2015 trails the 6 % healthy mark.

Is Philip Morris International expensive or cheap?

Philip Morris International trades at a P/E of 28.4× over the last 12 months, 45 % above its ten-year median of 19.5× and 26 % above the 22.4× median of its sector. The stock has traded at a lower P/E in 89 % of the past decade, in a range that ran from 13.2× to 41.4×. Much of the rerating comes from the share price, which is up 33 % in 12 months and sits 4 % below its 52-week high of $205.58. A free cash flow yield of 4.4 % and an earnings yield of 4.7 % leave a thin cushion if growth slows.

How is the business doing?

Revenue grew 7.3 % over the last 12 months while EPS jumped 61 %, so earnings are rising far faster than sales. The operating margin of 39 % is in line with its 2014-2025 average of 38 % and slightly above the 37 % of fiscal 2025, which points to a stable business holding its level. Returns on capital are the standout: ROIC of 30 % over the last 12 months is 21 points above the 8.9 % sector median, and it has stayed above 10 % in each of the last ten fiscal years.

How strong is the balance sheet?

Net debt was $29.27 per share in fiscal 2025, about 15 % of the current price, and 2.5× EBITDA, exactly at the 2.5× ceiling considered healthy for consumer staples. Short-term liquidity is comfortable, with a current ratio of 2.65 over the last 12 months, and an Altman Z of 3.9 plus a Piotroski score of 8 out of 9 point to a sound financial position. The dividend yields 3.0 % and has grown for 11 consecutive fiscal years, but the 76 % payout in fiscal 2025 sits at the 75 % comfort line, leaving limited room for faster raises.

What to expect from the next earnings?

Philip Morris International has beaten EPS estimates in 7 of the last 8 quarters. On October 21, 2026 it reported EPS of $2.36 against $2.30 expected, a 2.6 % beat. The 2026 EPS consensus barely moved over the last 30 days, from $8.39 to $8.40 across 6 analysts, and revenue estimates were equally steady, so expectations remain stable. Of the 25 analysts covering the company, 17 recommend buying, 7 holding and 1 selling. The next test comes on February 5, 2027, when analysts expect EPS of $1.94.

Is it as stable as the sector promises?

Consumer staples are Buffett's favourite boring businesses, where investors look for stability and a rising dividend over explosive growth, so the checks focus on margins, cash conversion, payout and debt. Philip Morris International clears the margin test easily, with a 67 % gross margin in fiscal 2025 against a 35 % threshold, and converted 94 % of net income into free cash flow, just above the 90 % mark. Growth is where it falls short: over fiscal 2015-2025 EPS grew 5.1 % a year and the dividend 3.2 %, both below the 6 % bar. The ROE of −127 % fails because book equity is negative, which makes the 30 % ROIC the cleaner gauge.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.