Employees: 80 200
Fiscal year ends: December 31
Headquarter: 120 Park Avenue, New York
Products: manufactures & sells cigarettes, tobacco products & other nicotine products
Rating (long-term): A (S&P), A2 (Moody’s), A (Fitch)
Competitors: Altria, British american tobacco, Imperial Brands, Japan tobacco, Reynolds American, Swedish Match
The company makes seven of the world’s top 15 tobacco brands, laying claim to more than 15% of the international cigarette market outside the US.
The company’s brands by sales volume are Marlboro (the world’s #1-selling cigarette, accounts for about a third of PMI’s total shipment volume),
L&M, Bond Street, Philip Morris, Chesterfield, and Parliament.
Philip Morris has quite a lot of attractive market share positions in emerging economies.
PMI has determined that it qualifies as an 80/20 company for U.S. tax purposes,
an “80/20 company” is a U.S. company, 80% of whose gross income for a specified period is generated from active businesses outside the US.
The business is in four segments:
• Eastern Europe, Middle East; Africa (“EEMA”)
• Asia
• Latin America; Canada
The uptrend in the company’s margin ratios came to a halt in 2014.
Nevertheless, underlying business fundamentals continue to be strong, revenue growth is still promising.
Profitability is Stable:
As the company exclusively sells outside of the United States,
the most prevalent risk factor for the last several years has been currencies.
PM has struggled as a strong dollar and increasing regulation has hindered growth.
Currency issues has improved since the beginning of 2016 and should have a positive impact on future earnings.
Financial health is Stable-:
The company appears to have taken on more debt.
Valuation price: PMI is a long-term buy at $78.52 => the stock price has performed poorly over the last several years and still has 23% downside.
Last stock splits: No
Share repurchase: flat. PMI spent $11.9 billion to repurchase the 135.3 million shares since August 2012.
On February 5, 2015, the company announced that there is no additional plans for share repurchases.
History
1987: Philip Morris International Inc. is incorporated as an operating company of Philip Morris Companies.
2008: March 28, Philip Morris spinned-off from Altria Group
Disclosure: Billion Trader has no positions in any stocks mentioned, the valuation is based on the own model developed and tested by Billion Trader. Billion Trader is not responsible for any loss arising from information provided.