Philip Morris International Inc. (PM)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable cash generation bought at a sensible price. PM is a high-quality tobacco and smoke-free nicotine business, but at the close on 2026-10-26 the $201.87 price gives a FairStock P/E of 29.47 and EV/EBITDA of 18.92, with a 4.0% FCF yield. That is not a Graham bargain; the market already credits the franchise. The balance-sheet and operating signals are good: ROCE 16.88%, Piotroski 8/9, Altman 3.60, TTM FCF $12.7B, dividend yield 3.17%, beta 0.36. The filed record is mixed. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $11.4B, net income $3.3B, diluted EPS $2.12; in fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $10.8B, net income $3.5B, diluted EPS $2.23. So sales rose, but profit and EPS fell. For FY2025, the year ended 2025-12-31, revenue was $40.6B, net income $11.3B, diluted EPS $7.26, versus FY2024, the year ended 2024-12-31, revenue $37.9B, net income $7.1B, diluted EPS $4.52. FairStock's Lynch category is Slow Grower, with 7.1% annual profit growth and 7.2% revenue growth over five years; it also shows 10.37% revenue growth and -7.31% profit growth. I like the cash engine and smoke-free portfolio, but the price leaves little margin of safety.

In plain English: Philip Morris sells cigarettes and smoke-free nicotine products such as IQOS, VEEV and ZYN. The business makes a lot of cash and looks financially solid, but sales growth is modest and recent profit has been uneven. At the current share price, the stock looks fully valued rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer