Pfizer (PFIZER)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Zero debt with ROE of 20.24% and ROCE of 21.62% shows high-quality returns without leverage.
• Piotroski F-score of 8/9 and Altman Z-score of 4.78 indicate strong financial health and earnings quality.
• Promoter holding of 63.92% aligns management interests with minority shareholders.
• Positive free cash flow of ₹159 Cr and latest quarter net profit of ₹142 Cr on sales of ₹645 Cr show cash generation.
• Sales growth of 9.30% suggests a steady, durable business franchise.

Concerns

• Profit growth is negative at -6.94% even though sales grew 9.30%, pointing to margin pressure.
• Valuation is rich: P/E of 30.41 and P/B of 5.19 leave little room for error.
• Price of ₹4,783.20 is far above the Graham Number of ₹1,968.31, giving a negative margin of safety of -157.18%.
• Dividend yield of only 0.69% offers little income support while waiting for growth to resume.

AI Analysis

Let me start with what I like. Pfizer India has a fortress-like balance sheet—no debt at all—and it generates positive free cash flow of ₹159 Cr. It compounds capital at an ROE of 20.24% and ROCE of 21.62%, which tells me management knows how to allocate capital without leverage. The Piotroski score of 8/9 reinforces the quality of its earnings, and an Altman Z-score of 4.78 indicates little near-term financial distress. Promoters hold 63.92%, so interests are aligned. But discipline demands I pay a sensible price. At ₹4,783.20, the market cap is ₹23,158 Cr, and I am asked to pay 30.41 times earnings and 5.19 times book value. Graham would shake his head: the Graham Number is only ₹1,968.31, meaning my margin of safety is deeply negative at -157%. Even the PEG ratio of 1.38, based on 9.30% sales growth, is not cheap. And while sales grew 9.30%, profit actually fell 6.94%—that is not a combination that excites me. The DCF estimate of ₹6,885.68 suggests theoretical upside, but DCFs are only as good as the assumptions, and I prefer a margin of safety over a precise model. Yes, this is a quality business—a steady compounder with zero debt and high returns on capital. But quality at the right price is the whole game. At this price, I am not buying a bargain; I am paying for perfection. For a retail investor, patience matters more than action. I would wait for a better price, or for the profit growth to convincingly catch up with sales growth, before committing fresh capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer