Philip Morris International Inc. (PM) Stock Analysis

Analysis from 10-Q filed 2025-10-24. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 35.8%. FCF margin 25.7%. D/E -5.3x. Source: 10-Q filed 2025-10-24.

Metric	Value	Context
ROIC	35.8%	Above industry average
FCF Margin	25.7%	Strong cash generation
Debt/Equity	-5.3x	Conservative leverage

ROIC 35.8% — Top 5% of sector peers. FCF margin 25.7% — Top 5%.

Explore Philip Morris International Inc.: Earnings History | Filings | ROIC Analysis

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.

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Profitability: Philip Morris International Inc. earns 35.8% ROIC, Top 5% in Consumer Staples

ROIC TTM 35.8%, sector median 5.8%, Top 5%. DuPont: NOPAT margin 29.6% × asset turnover 0.6x. Gross margin 67.3%. Operating margin 36.7%. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Return on Invested Capital (ROIC)	35.8%	Excellent	Above sector median of 5.8%
Return on Equity (ROE)	-103.0%	Red flag	Moderate equity returns
Gross Margin	67.3%	Excellent	Strong pricing power
Operating Margin	36.7%	Excellent	Efficient operations

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Cash Flow: Philip Morris International Inc. generates $10.7B FCF at 25.7% margin, positive NaN/8 quarters

FCF TTM $10.7B. FCF margin 25.7%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Free Cash Flow Margin	25.7%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$10.7B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Philip Morris International Inc. at -5.3x leverage

Debt/Equity -5.3x. Total debt $49.5B, cash & investments $5.5B. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Debt to Equity	-5.3x	Excellent	Conservative capital structure
Net Cash Position	$-44.0B	Warning	Net debt position

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Valuation: Philip Morris International Inc. trades at 23.2x earnings

P/E 23.2x. EV/Sales 7.2x. FCF yield 4.2%. Dividend yield 3.4%. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
P/E Ratio	23.2x	Adequate	Premium valuation
EV/Sales	7.2x	Adequate	Growth premium priced in
FCF Yield	4.2%	Good	Lower cash yield
Dividend Yield	3.4%	Adequate	Meaningful income

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Capital Allocation: Philip Morris International Inc. returns 3.4% shareholder yield

Total shareholder yield 3.4% (div 3.4%). Capital returned $8.8B TTM. Source: 10-Q filed 2025-10-24.

Metric	PM	Rating	Context
Total Shareholder Yield	3.4%	Good	Dividend + buyback yield combined
Total Capital Returned (TTM)	$8.8B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	35.8%	Top 5%	6.1x above
Free Cash Flow Margin	25.7%	Top 5%	4.4x above
Gross Margin	67.3%	Top 5%	2.3x above
Operating Margin	36.7%	Top 5%	5.0x above
Return on Equity (ROE)	-103.0%	Top 5%	-12.3x below
P/E Ratio	23.2x	N/A	-

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Financial Scorecard

Metric	PM	Rating	Sector Context
Return on Invested Capital (ROIC)	35.8%	Excellent	Top 5% of sector (median: 5.8%)
Free Cash Flow Margin	25.7%	Excellent	Top 5% of sector (median: 5.8%)
Gross Margin	67.3%	Excellent	Top 5% of sector (median: 29.4%)
Debt to Equity Ratio	-533.5%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	23.2x	Adequate	Fair value
Free Cash Flow Yield	4.2%	Adequate	Moderate yield

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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 35.8%. Sector median 5.8%. 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 25.7%, generating $10.7 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 23.2x, which is above the sector median of N/A. EV/Sales 7.2x. FCF yield 4.2%. 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 3.4%. Total shareholder yield (dividend + buybacks) 3.4%. 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 8.1% year-over-year. EPS +45.9% 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 35.8%, sector median 5.8% (Top 5%). FCF margin 25.7%, sector median 5.8% (Top 5%). Gross margin 67.3%, 37.9pp 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.

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Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q1 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.