Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Philip Morris International Inc.

PM · NYSE · Consumer

Fundamental quality

ATTRACTIVE

79

out of 100

Philip Morris International Inc. runs like a cash machine: it converts about 29.9% of revenue into free cash flow and holds a 25.6% net margin, though it grows at a measured pace. On fundamental quality it scores 79 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +7.4%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Philip Morris International sells tobacco outside the U.S., with Marlboro as its flagship brand. Its big future bet is the cigarette that heats tobacco without burning it (IQOS) and other 'smoke-free' products, with which it aims to replace the declining traditional cigarette.

What will shape its future

  • The shift from traditional cigarettes to smoke-free products (IQOS, nicotine pouches), its main growth engine.
  • Its brand power to raise prices and offset falling tobacco volumes.
  • Regulation of tobacco and nicotine products, and its currency exposure from selling worldwide.

Breakdown by area

I.Growth
50

EPS growth: 5.6% · Revenue growth: 7.4%

II.Profitability
93

Net margin: 25.6% · ROIC: 41.2%

III.Financial health
81

Net debt/EBITDA: 2.19x · FCF: 29.9%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 17 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 97%
Growthbeats 43%
Cash generationbeats 98%
Less debtbeats 34%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Philip Morris International Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 29.9%): profit turns into real cash.
  • High gross margin (67.5%), pointing to pricing power.
  • Exceptional net margin (25.6%), high even for its sector: the business is clearly profitable.
  • Revenue rising without interruption since 2020.

Philip Morris International Inc. risks and weaknesses

  • Its net debt has grown over the period.

Philip Morris International Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202028,6948,0569,21021,132
202131,4059,10911,21920,512
202231,7629,0489,72637,305
202335,1747,8137,88340,151
202437,8787,05710,77338,087
202540,64811,34810,66440,430

Between 2020 and 2025, revenue went from $28,694M to $40,648M (+42%) and net income went from $8,056M to $11,348M (+41%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+9.8%
  • Net income-8.3%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7779
  • Net margin26.7%25.6%
  • FCF margin25.7%29.9%
  • Net debt/EBITDA2.55×2.19×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$5.64

per share, yearly

76% of earnings

Payout

at least 17 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Philip Morris International Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Philip Morris International Inc. a good company to invest in?

In terms of business quality, Philip Morris International Inc. scores 79 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Philip Morris International Inc. a profitable company?

Very. Philip Morris International Inc. shows a net margin of 25.6%, typical of a highly profitable business.

Does Philip Morris International Inc. have a lot of debt?

A moderate level: its net debt is 2.19 times its EBITDA.

Is Philip Morris International Inc. growing?

Its revenue has grown 7.4% annualized in recent years and its earnings per share 5.6%, and without interruption since 2020.

Does Philip Morris International Inc. generate cash?

Yes. It converts about 29.9% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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