PFIZER INC (PFE) Stock Analysis
PFIZER INC (PFE) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
PFIZER INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 15.1% | Solid returns |
| FCF Margin | 14.5% | Healthy cash flow |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Strong return on invested capital of 15.1% suggests durable competitive advantages and efficient capital allocation.
Explore PFIZER INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: PFIZER INC earns 15.1% ROIC, Top 25% in Healthcare
PFIZER INC's trailing-twelve-month ROIC of 15.1% ranks Top 25% in Healthcare companies (sector median: -3.9%), driven by NOPAT margin of 36.9% combined with asset turnover of 0.3x. Source: 10-Q filed 2025-11-04. Gross margin of 74.3% with operating margin at 35.6% reflects strong pricing power.
| Metric | PFE | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 15.1% | Good | Above sector median of -3.9% |
| Return on Equity (ROE) | 8.7% | Adequate | Moderate equity returns |
| Gross Margin | 74.3% | Excellent | Strong pricing power |
| Operating Margin | 35.6% | Excellent | Efficient operations |
Cash Flow: PFIZER INC generates $9.1B FCF at 14.5% margin, positive NaN/8 quarters
PFIZER INC generated $9.1B in free cash flow (TTM), a 14.5% FCF margin, a margin that ranks Top 5% in Healthcare. Operating cash flow exceeds net income by 1.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | PFE | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.5% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $9.1B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: PFIZER INC at 0.7x leverage
PFIZER INC's debt-to-equity ratio of 0.7x reflects elevated leverage. Total debt of $64.8B offset by $10.4B in cash. Source: 10-Q filed 2025-11-04.
| Metric | PFE | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Adequate | Moderate leverage |
| Net Cash Position | $-54.4B | Warning | Net debt position |
Valuation: PFIZER INC trades at 18.3x earnings
PFIZER INC trades at a P/E of 18.3x. Free cash flow yield of 6.4% offers attractive cash returns relative to price.
| Metric | PFE | Rating | Context |
|---|---|---|---|
| P/E Ratio | 18.3x | Adequate | Reasonable valuation |
| EV/Sales | 3.1x | Good | Growth premium priced in |
| FCF Yield | 6.4% | Good | Attractive cash return |
| Dividend Yield | 6.9% | Good | Meaningful income |
Capital Allocation: PFIZER INC returns 6.9% shareholder yield
PFIZER INC's total shareholder yield is 6.9% (dividends 6.9% + buybacks). Source: 10-Q filed 2025-11-04.
| Metric | PFE | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 6.9% | Excellent | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $9.8B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 15.1% | Top 25% | - |
| Free Cash Flow Margin | 14.5% | Top 5% | - |
| Gross Margin | 74.3% | Top 50% | 1.2x above |
| Operating Margin | 35.6% | Top 25% | 18.5x above |
| Return on Equity (ROE) | 8.7% | Top 50% | - |
| P/E Ratio | 18.3x | N/A | - |
Financial Scorecard
| Metric | PFE | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 15.1% | Good | Top 25% of sector (median: -3.9%) |
| Free Cash Flow Margin | 14.5% | Good | Top 5% of sector (median: 0.0%) |
| Gross Margin | 74.3% | Excellent | Top 50% of sector (median: 64.0%) |
| Debt to Equity Ratio | 74.9% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 18.3x | Adequate | Fair value |
| Free Cash Flow Yield | 6.4% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is PFIZER INC's Return on Invested Capital (ROIC)?
PFIZER INC (PFE) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.1%. This compares above the sector median of -3.9%. An ROIC between 12-20% indicates solid capital allocation and sustainable competitive position.
Q: What is PFIZER INC's Free Cash Flow Margin?
PFIZER INC (PFE) has a free cash flow margin of 14.5%, generating $9.1 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is PFIZER INC stock overvalued or undervalued?
PFIZER INC (PFE) trades at a P/E ratio of 18.3x, which is above the sector median of N/A. The EV/Sales multiple is 3.1x. Free cash flow yield is 6.4%, which represents an attractive cash return to investors.
Q: Does PFIZER INC pay a dividend?
PFIZER INC (PFE) currently pays a dividend yield of 6.9%. Including share buybacks, the total shareholder yield is 6.9%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does PFIZER INC have?
PFIZER INC (PFE) has a debt-to-equity ratio of 0.7x with total debt of $64.8 billion. Net debt position is $54.4 billion.
Q: What is PFIZER INC's revenue and earnings growth?
PFIZER INC (PFE) declined revenue by 1.6% year-over-year. Earnings per share decreased by 3.5% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does PFIZER INC compare to competitors in Healthcare?
Compared to other companies in Healthcare, PFIZER INC (PFE) shows: ROIC of 15.1% is above the sector median of -3.9% (Top 23%). FCF margin of 14.5% exceeds the sector median of 0.0% (Top 0% of sector). Gross margin at 74.3% is 10.4 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with PFIZER INC?
PFIZER INC (PFE) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.