Pfizer Inc

PFE

Pharmaceutical Preparations

Mkt Cap

$167.5B

PE

15.98

Debt

$63.6B

Cash

$3.233B

EV

$227.9B

FCF

$8.178B

Market Cap

$167.5B

P/E Ratio

15.98

Debt

$63.6B

Cash

$3.233B

EV

$227.9B

FCF

$8.178B

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena, and Braftovi brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Sector

10-Q
7/2/23
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4/2/23
10-K
12/31/22
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10/2/22
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7/3/22
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4/3/22
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12/31/21
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10-K
12/31/19
10-Q
9/29/19
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6/30/19
10-Q
3/31/19

DCF

Discounted Cash Flow Valuation of Pfizer Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$8.178B	$8.529B	$8.896B	$9.278B	$9.677B	$10.09B	$10.53B	$10.98B	$11.45B	$11.94B	$12.46B	$124.6B
DCF		$7.417B	$6.727B	$6.1B	$5.533B	$5.018B	$4.551B	$4.127B	$3.743B	$3.395B	$3.079B	$30.79B
Value	$80.48B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 14%

Earnings Stability 47%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	18%	14%	14%	41%	21%	31%	23%	27%	31%	15%
ROA	8%	6.1%	5.6%	7.2%	7.5%	11%	4.9%	13%	18%	4.8%
ROE	13%	11%	12%	30%	17%	26%	15%	28%	33%	11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +29.03%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.17%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.84%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +24.85%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.06%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	2.34	2.97	2.99	3.00	3.03	5.01	3.28	1.27	1.38	7.78
Debt Equity	0.51	0.60	0.70	0.61	0.65	0.82	0.63	0.50	0.37	0.65
MIN
Graham Stability	-	-	57%	100%	94%	100%	59%	100%	100%	57%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 7.78.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.43.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.57.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	11%	14%	25%	23%	5.7%
Net Income	24%	8%	24%	43%	10%
Stockholders Equity	5.7%	6%	15%	24%	3.5%
FCF	10%	12%	36%	-14%	7.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +13.81%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +5.68%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +8.04%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +10.39%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.01%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.52%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +12.39%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +7.53%.