Detailed financial statements for Philip Morris International Inc. (PM): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Philip Morris International Inc. functions as a prominent tobacco enterprise, actively working toward a smoke-free future. The company is strategically diversifying its long-term product range to incorporate items beyond traditional tobacco and nicotine. Its primary business involves both conventional cigarettes and an expanding array of smoke-free alternatives, such as innovative heat-not-burn devices, vapor products, and oral nicotine solutions.
Analysis Summary
Philip Morris International Inc. reported revenue of $40.65B in the most recent fiscal year, growing at a 5-year CAGR of 7.2%. Net income reached $11.35B, with a 7.1% 5-year CAGR.
Trailing-twelve-month margins: gross margin 67.5%, operating margin 37.7%, net margin 25.6%. Free cash flow grew at 3.0% CAGR over 5 years.
At the current price of $189.53, PM trades at a P/E of 26.93 and an ROE of -112.19%. Market capitalisation stands at $295.4B, placing it among large-cap names.
Balance sheet quality for PM: current ratio of 1.0, net debt of $43.96B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $10.66B represents 94% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $26.68B | $28.75B | $29.62B | $29.80B | $28.69B | $31.41B | $31.76B | $35.17B | $37.88B | $40.65B |
| Cost of Revenue | $9.39B | $10.43B | $10.76B | $10.51B | $9.57B | $10.03B | $11.40B | $12.89B | $13.33B | $13.37B |
| Gross Profit | $17.29B | $18.32B | $18.87B | $19.29B | $19.12B | $21.38B | $20.36B | $22.28B | $24.55B | $27.28B |
| Research & Development | $429.0M | $453.0M | $383.0M | $465.0M | $495.0M | $617.0M | 0 | 0 | $759.0M | 0 |
| Selling, General & Admin | $6.41B | $6.72B | $7.45B | $8.78B | $7.48B | $8.40B | $8.11B | $10.06B | $11.15B | $12.35B |
| Operating Expenses | $6.38B | $6.75B | $7.47B | $8.76B | $7.46B | $8.40B | $8.11B | $10.72B | $11.15B | $12.35B |
| Operating Income | $10.90B | $11.58B | $11.34B | $10.53B | $11.72B | $12.97B | $12.25B | $11.56B | $13.40B | $14.93B |
| EBITDA | $11.71B | $12.46B | $12.52B | $11.63B | $12.66B | $13.97B | $13.48B | $13.37B | $15.75B | $17.46B |
| Interest Expense | $1.07B | $1.10B | $855.0M | $796.0M | $728.0M | $737.0M | $768.0M | $1.53B | $1.76B | $1.59B |
| Pre-tax Income | $10.02B | $10.65B | $10.73B | $10.02B | $10.97B | $12.38B | $11.77B | $10.61B | $12.20B | $14.59B |
| Income Tax | $2.77B | $4.31B | $2.44B | $2.29B | $2.38B | $2.67B | $2.24B | $2.34B | $2.38B | $2.74B |
| Net Income | $6.97B | $6.04B | $7.91B | $7.18B | $8.06B | $9.11B | $9.05B | $7.79B | $7.03B | $11.35B |
| EPS | $4.48 | $3.88 | $5.09 | $4.61 | $5.16 | $5.83 | $5.82 | $5.02 | $4.53 | $7.27 |
| EPS (Diluted) | $4.48 | $3.88 | $5.09 | $4.61 | $5.16 | $5.83 | $5.81 | $5.02 | $4.52 | $7.26 |
| Shares Outstanding (Diluted) | $1.55B | $1.55B | $1.55B | $1.56B | $1.56B | $1.56B | $1.55B | $1.55B | $1.56B | $1.56B |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $10.85B | $10.36B | $10.15B | $11.19B |
| Gross Profit | $7.36B | $6.80B | $6.91B | $7.66B |
| Operating Income | $4.26B | $3.37B | $3.89B | $4.53B |
| EBITDA | $4.75B | $4.51B | $4.41B | $4.54B |
| Net Income | $3.48B | $2.14B | $2.44B | $2.82B |
| EPS | $2.23 | $1.37 | $1.56 | $1.80 |
| EPS (Diluted) | $2.23 | $1.37 | $1.56 | $1.80 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $4.24B | $8.45B | $6.59B | $6.86B | $7.28B | $4.50B | $3.21B | $3.06B | $4.22B | $4.87B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $3.50B | $3.74B | $3.56B | $3.72B | $3.76B | $3.94B | $4.76B | $4.39B | $4.67B | $5.81B |
| Inventory | $9.02B | $8.81B | $8.80B | $9.23B | $9.59B | $8.72B | $9.89B | $10.77B | $9.45B | $11.48B |
| Total Current Assets | $17.61B | $21.59B | $19.44B | $20.51B | $21.49B | $17.72B | $19.62B | $19.75B | $20.17B | $24.36B |
| Property, Plant & Equipment | $6.06B | $7.27B | $7.20B | $6.63B | $6.37B | $6.17B | $6.71B | $7.52B | $7.31B | $8.40B |
| Goodwill | $7.32B | $7.67B | $7.19B | $5.86B | $5.96B | $6.68B | $19.66B | $16.78B | $16.60B | $17.26B |
| Intangible Assets | $2.47B | $2.43B | $2.28B | $2.11B | $2.02B | $2.82B | $6.73B | $9.86B | $11.33B | $10.88B |
| Total Assets | $36.85B | $42.97B | $39.80B | $42.88B | $44.81B | $41.29B | $61.68B | $65.30B | $61.78B | $69.19B |
| Accounts Payable | $1.67B | $2.24B | $2.07B | $2.30B | $2.78B | $3.33B | $4.08B | $4.14B | $3.95B | $4.41B |
| Short-term Debt | $3.22B | $3.00B | $4.78B | $4.39B | $3.37B | $3.02B | $8.25B | $6.67B | $3.53B | $3.70B |
| Total Current Liabilities | $16.47B | $15.96B | $17.19B | $18.83B | $19.61B | $19.25B | $27.34B | $26.38B | $22.91B | $25.43B |
| Long-term Debt | $25.85B | $31.33B | $26.98B | $26.66B | $28.17B | $24.78B | $34.88B | $41.24B | $42.17B | $45.13B |
| Total Liabilities | $47.75B | $53.20B | $50.54B | $52.47B | $55.45B | $49.50B | $67.99B | $74.75B | $71.65B | $77.21B |
| Retained Earnings | $30.40B | $29.86B | $31.01B | $30.99B | $31.64B | $33.08B | $34.29B | $34.09B | $32.87B | $35.40B |
| Total Equity | -$12.69B | -$12.09B | -$12.46B | -$11.58B | -$12.57B | -$10.11B | -$8.96B | -$11.22B | -$11.75B | -$9.99B |
| Total Debt | $29.07B | $34.34B | $31.76B | $31.05B | $31.54B | $27.81B | $43.12B | $47.91B | $45.70B | $48.84B |
| Net Debt | $24.83B | $25.89B | $25.17B | $24.18B | $24.26B | $23.31B | $39.92B | $44.85B | $41.48B | $43.96B |
| Working Capital | $1.14B | $5.63B | $2.25B | $1.68B | $1.88B | -$1.54B | -$7.72B | -$6.63B | -$2.75B | -$1.06B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $4.04B | $4.87B | $5.45B | $6.00B |
| Total Assets | $67.06B | $69.19B | $68.91B | $68.27B |
| Total Liabilities | $76.05B | $77.21B | $76.21B | $74.93B |
| Total Equity | -$10.91B | -$9.99B | -$9.28B | -$8.58B |
| Total Debt | $50.08B | $48.84B | $51.95B | $49.11B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $6.97B | $6.04B | $7.91B | $7.18B | $8.06B | $9.11B | $9.05B | $8.27B | $7.50B | $11.32B |
| Depreciation & Amortization | $743.0M | $875.0M | $989.0M | $964.0M | $981.0M | $998.0M | $1.08B | $1.40B | $1.79B | $2.00B |
| Stock-based Compensation | $153.0M | $148.0M | $138.0M | $172.0M | $167.0M | $210.0M | $183.0M | 0 | 0 | 0 |
| Change in Working Capital | -$63.0M | $2.20B | $303.0M | $1.17B | $396.0M | $1.30B | $423.0M | -$1.30B | $677.0M | -$1.10B |
| Operating Cash Flow | $8.08B | $8.91B | $9.48B | $10.09B | $9.81B | $11.97B | $10.80B | $9.20B | $12.22B | $12.23B |
| Capital Expenditure | -$1.17B | -$1.55B | -$1.44B | -$852.0M | -$602.0M | -$748.0M | -$1.08B | -$1.32B | -$1.44B | -$1.57B |
| Acquisitions | $7.0M | -$111.0M | -$63.0M | -$1.38B | -$47.0M | -$2.15B | -$14.00B | -$111.0M | $55.0M | -$491.0M |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | -$775.0M | -$209.0M | 0 | 0 | 0 |
| Dividends Paid | -$6.38B | -$6.52B | -$6.88B | -$7.16B | -$7.36B | -$7.58B | -$7.81B | -$7.96B | -$8.20B | -$8.62B |
| Free Cash Flow | $6.91B | $7.36B | $8.04B | $9.24B | $9.21B | $11.22B | $9.73B | $7.88B | $10.77B | $10.66B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $4.46B | $4.71B | -$399.0M | $5.49B |
| Capital Expenditure | -$365.0M | -$444.0M | -$353.0M | -$380.0M |
| Free Cash Flow | $4.10B | $4.26B | -$752.0M | $5.11B |
| Dividends Paid | -$2.11B | -$2.29B | -$2.31B | -$2.30B |
| Stock-based Compensation | 0 | 0 | 0 | 0 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +7.7% | +3.1% | +0.6% | -3.7% | +9.4% | +1.1% | +10.7% | +7.7% | +7.3% | |
| Net Income Growth (YoY) | -13.4% | +31.1% | -9.2% | +12.1% | +13.1% | -0.7% | -13.9% | -9.7% | +61.3% | |
| EPS Growth (YoY) | -13.4% | +31.2% | -9.4% | +11.9% | +13.0% | -0.2% | -13.7% | -9.8% | +60.5% | |
| Shares Change (YoY) | +0.1% | +0.1% | +0.1% | +0.1% | +0.1% | -0.4% | +0.1% | +0.2% | +0.1% | |
| FCF Growth (YoY) | +6.6% | +9.2% | +14.9% | -0.3% | +21.8% | -13.3% | -18.9% | +36.7% | -1.0% | |
| Gross Margin | 64.8% | 63.7% | 63.7% | 64.7% | 66.7% | 68.1% | 64.1% | 63.3% | 64.8% | 67.1% |
| Operating Margin | 40.9% | 40.3% | 38.3% | 35.3% | 40.8% | 41.3% | 38.6% | 32.9% | 35.4% | 36.7% |
| EBITDA Margin | 43.9% | 43.3% | 42.2% | 39.0% | 44.1% | 44.5% | 42.4% | 38.0% | 41.6% | 43.0% |
| Net Margin | 26.1% | 21.0% | 26.7% | 24.1% | 28.1% | 29.0% | 28.5% | 22.1% | 18.6% | 27.9% |
| FCF Margin | 25.9% | 25.6% | 27.1% | 31.0% | 32.1% | 35.7% | 30.6% | 22.4% | 28.4% | 26.2% |
| Effective Tax Rate | 27.6% | 40.4% | 22.8% | 22.9% | 21.7% | 21.6% | 19.1% | 22.1% | 19.5% | 18.8% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $4.45 | $4.74 | $5.17 | $5.94 | $5.91 | $7.20 | $6.27 | $5.08 | $6.92 | $6.84 |
| Dividends Per Share | $4.11 | $4.20 | $4.43 | $4.60 | $4.73 | $4.86 | $5.03 | $5.13 | $5.27 | $5.54 |
| Shares Outstanding (Basic) | $1.55B | $1.55B | $1.55B | $1.55B | $1.56B | $1.56B | $1.55B | $1.55B | $1.55B | $1.56B |
What to look at in Consumer Defensive companies
- Gross margin (stable 5y) (Stable >=35%) — Brand pricing power — Coca-Cola does not drop margins.
- ROE / ROIC stable (ROE >=15% stable) — Defensive businesses have high consistent ROEs — Lynch's stalwarts.
- FCF / Net Income (>=90%) — Earnings to cash conversion — best names exceed 95%.
- Dividend growth 10y (>=6%/year) — Dividend Aristocrats raise 25+ years — moat signal.
- Payout Ratio (<75%) — >80% = dividend at risk. <60% comfortable.
- Net Debt / EBITDA (<2.5x) — Defensive with high debt loses its essence.
Profitability
| Return on Equity | -112.19% |
| Return on Invested Capital | 26.30% |
| Return on Assets | 15.93% |
| Gross Margin | 67.51% |
| Operating Margin | 37.75% |
| Net Margin | 25.56% |
Financial Health
| Debt / Equity | -5.72 |
| Current Ratio | 0.98 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 3.94 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 20.42 | 27.23 | 13.12 | 18.46 | 16.04 | 16.30 | 17.39 | 18.74 | 26.57 | 22.06 |
| P/B | -11.18 | -13.57 | -8.33 | -11.43 | -10.26 | -14.65 | -17.51 | -13.01 | -15.92 | -24.97 |
| P/S | 5.32 | 5.70 | 3.50 | 4.44 | 4.49 | 4.71 | 4.94 | 4.15 | 4.94 | 6.14 |
| Gross Margin | 64.8% | 63.7% | 63.7% | 64.7% | 66.7% | 68.1% | 64.1% | 63.3% | 64.8% | 67.1% |
| Operating Margin | 40.9% | 40.3% | 38.3% | 35.3% | 40.8% | 41.3% | 38.6% | 32.9% | 35.4% | 36.7% |
| Net Margin | 26.1% | 21.0% | 26.7% | 24.1% | 28.1% | 29.0% | 28.5% | 22.1% | 18.6% | 27.9% |
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Explore sector: Consumer Defensive · Tobacco
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