Philip Morris International Inc. (PM) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 31.9%. FCF margin 29.9%. D/E -5.7x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	31.9%	Above industry average
FCF Margin	29.9%	Strong cash generation
Debt/Equity	-5.7x	Conservative leverage

ROIC 31.9% — Top 5% of sector peers. FCF margin 29.9% — Top 5%.

Explore Philip Morris International Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PM: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Philip Morris International Inc. earns 31.9% ROIC, Top 5% in Consumer Staples

ROIC TTM 31.9%, sector median 5.7%, Top 5%. DuPont: NOPAT margin 30.1% × asset turnover 0.6x. Gross margin 67.5%. Operating margin 37.7%. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Return on Invested Capital (ROIC)	31.9%	Excellent	Above sector median of 5.7%
Return on Equity (ROE)	-107.5%	Red flag	Moderate equity returns
Gross Margin	67.5%	Excellent	Strong pricing power
Operating Margin	37.7%	Excellent	Efficient operations

---

Cash Flow: Philip Morris International Inc. generates $12.7B FCF at 29.9% margin, positive NaN/8 quarters

FCF TTM $12.7B. FCF margin 29.9%, Top 5%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Free Cash Flow Margin	29.9%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$12.7B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Philip Morris International Inc. at -5.7x leverage

Debt/Equity -5.7x. Total debt $49.1B, cash & investments $6.0B. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Debt to Equity	-5.7x	Excellent	Conservative capital structure
Net Cash Position	$-43.1B	Warning	Net debt position

---

Valuation: Philip Morris International Inc. trades at 26.0x earnings

P/E 26.0x. EV/Sales 7.2x. FCF yield 4.5%. Dividend yield 3.2%. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
P/E Ratio	26.0x	Adequate	Premium valuation
EV/Sales	7.2x	Adequate	Growth premium priced in
FCF Yield	4.5%	Good	Lower cash yield
Dividend Yield	3.2%	Adequate	Meaningful income

---

Capital Allocation: Philip Morris International Inc. returns 3.2% shareholder yield

Total shareholder yield 3.2% (div 3.2%). Capital returned $9.0B TTM. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Total Shareholder Yield	3.2%	Good	Dividend + buyback yield combined
Total Capital Returned (TTM)	$9.0B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	31.9%	Top 5%	5.6x above
Free Cash Flow Margin	29.9%	Top 5%	6.2x above
Gross Margin	67.5%	Top 5%	2.3x above
Operating Margin	37.7%	Top 5%	7.9x above
Return on Equity (ROE)	-107.5%	Top 5%	-17.4x below
P/E Ratio	26.0x	N/A	-

---

Financial Scorecard

Metric	PM	Rating	Sector Context
Return on Invested Capital (ROIC)	31.9%	Excellent	Top 5% of sector (median: 5.7%)
Free Cash Flow Margin	29.9%	Excellent	Top 5% of sector (median: 4.8%)
Gross Margin	67.5%	Excellent	Top 5% of sector (median: 28.8%)
Debt to Equity Ratio	-572.2%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	26.0x	Adequate	Growth premium
Free Cash Flow Yield	4.5%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is Philip Morris International Inc.'s Return on Invested Capital (ROIC)?

Philip Morris International Inc. (PM) has a trailing twelve-month Return on Invested Capital (ROIC) of 31.9%. Sector median 5.7%. Source: 10-Q filed 2025-10-24.

Q: What is Philip Morris International Inc.'s Free Cash Flow Margin?

Philip Morris International Inc. (PM) has a free cash flow margin of 29.9%, generating $12.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-24.

Q: What is Philip Morris International Inc.'s P/E ratio and how does it compare to peers?

Philip Morris International Inc. (PM) trades at a P/E ratio of 26.0x, which is above the sector median of N/A. EV/Sales 7.2x. FCF yield 4.5%. Source: 10-Q filed 2025-10-24.

Q: Does Philip Morris International Inc. pay a dividend?

Philip Morris International Inc. (PM) currently pays a dividend yield of 3.2%. Total shareholder yield (dividend + buybacks) 3.2%. Source: 10-Q filed 2025-10-24.

Q: What is Philip Morris International Inc.'s revenue and earnings growth?

Philip Morris International Inc. (PM) grew revenue by 8.9% year-over-year. EPS +32.0% YoY. Source: 10-Q filed 2025-10-24.

Q: How does Philip Morris International Inc. compare to competitors in Consumer Staples?

Compared to other companies in Consumer Staples, Philip Morris International Inc. (PM) shows: ROIC 31.9%, sector median 5.7% (Top 5%). FCF margin 29.9%, sector median 4.8% (Top 5%). Gross margin 67.5%, 38.7pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.

Q: What warning signs should I watch for with Philip Morris International Inc.?

No quantitative warning flags fired for Philip Morris International Inc. (PM) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-24.

---

Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q2 2026.

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.