Now trading at a price of $30.45, Pfizer has moved 0.1% so far today.
Pfizer returned losses of -33.0% last year, with its stock price reaching a high of $54.93 and a low of $30.32. Over the same period, the stock underperformed the S&P 500 index by -44.0%. As of April 2023, the company's 50-day average price was $33.95. Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Based in New York, NY, the large-cap Health Care company has 83,000 full time employees. Pfizer has offered a 5.3% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 60.94%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $40,825 | $40,905 | $41,651 | $81,288 | -$987 | $105,685 |
| Gross Margins | 78% | 80% | 80% | 62% | 3579% | 77% |
| Operating Margins | 9.0% | 28.0% | 17.0% | 30.0% | -3519.0% | 22.0% |
| Net Margins | 27.0% | 39.0% | 22.0% | 28.0% | -3182.0% | 20.0% |
| Net Income (MM) | $11,188 | $16,056 | $9,195 | $22,459 | $31,407 | $21,540 |
| Net Interest Expense (MM) | $1,316 | $1,573 | $1,449 | $4,878 | $1,238 | $1,449 |
| Earnings Per Share | $1.87 | $2.82 | $1.63 | $3.85 | $5.47 | $3.75 |
| EPS Growth | n/a | 50.8% | -42.2% | 136.2% | 42.08% | -31.44% |
| Diluted Shares (MM) | 5,977 | 5,675 | 5,632 | 5,708 | 5,733 | 5,703 |
| Free Cash Flow (MM) | $13,843 | $10,542 | $12,177 | $30,211 | $26,031 | $18,835 |
| Capital Expenditures (MM) | $1,984 | $2,046 | $2,226 | $2,711 | $3,236 | $3,895 |
| Net Current Assets (MM) | -$45,738 | -$71,345 | -$55,689 | -$44,320 | -$50,029 | -$47,528 |
| Long Term Debt (MM) | $32,909 | $35,955 | $37,133 | $36,195 | $32,884 | $61,356 |
Pfizer has growing revenues and increasing reinvestment in the business and healthy debt levels. Additionally, the company's financial statements display wider gross margins than its peer group and a strong EPS growth trend. However, the firm has consistently negative margins with a positive growth rate. Finally, we note that Pfizer has irregular cash flows.
Pfizer Has Attractive Multiples and Trades Below Its Graham Number:
Pfizer has a trailing twelve month P/E ratio of 9.0, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $3.01, the company has a forward P/E ratio of 11.3. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 12.3%. On this basis, Pfizer's PEG ratio is 0.73. Using instead the 9.1% weighted average of Pfizer's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 1.0, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Pfizer in terms of its equity because its P/B ratio is 1.74 whereas the sector average is 4.16. The company's shares are currently trading -21.1% below their Graham number.
Pfizer Has an Average Rating of Buy:
The 21 analysts following Pfizer have set target prices ranging from $30.18 to $70.73 per share, for an average of $38.67 with a buy rating. As of April 2023, the company is trading -12.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Pfizer has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 70.8% of the company's shares, and the insider ownership rate stands at 0.04%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $15,469,635,560.
