NYSE · Consumer Defensive

Philip Morris International Inc.

PM · Tobacco

$178.40

▼ -1.04 (-0.58%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 68.1%

Operating Margin 38.4%

Net Income Margin 24.0%

Fin. Health

F⤢

Years to Pay Off Debt 21.3 yrs

Working Capital vs Long-Term Debt -$44.4B

Working Capital -$620M

Valuation

D⤢

Price-to-Book N/A (neg. equity)

Cash Flow

C⤢

Free Cash Flow -$752M

CapEx % of Net Income 14.5%

Owner Earnings $3.3B

Profitability

Gross Profit Margin 68.1%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 38.4%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 24.0%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 21.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$44.4B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$620M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$752M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 14.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $3.3B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Philip Morris International Inc.

Philip Morris International Inc. operates as a tobacco company. The company offers cigarettes and smoke-free products, including heat-not-burn, e-vapor, and oral nicotine products under the IQOS, VEEV, and ZYN brands; and consumer accessories, such as lighters and matches. It also offers wellness products. The company was incorporated in 1987 and is headquartered in Stamford, Connecticut.

Market Data

Market Cap $278.0B

Enterprise Value $335.4B

P/E (TTM) 25.13

Dividend Yield 3.21%

Exchange NYSE

Key Margins

Gross Profit 68.1%

Operating Margin 38.4%

Net Margin 24.0%

Company Info

Sector Consumer Defensive

Industry Tobacco

Employees 84900

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Philip Morris International Inc. at $178.40.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	68.1%▲	65.6%•	N/A
Operating Margin %	38.4%▲	32.6%•	N/A
Net Income %	24.0%▲	20.7%•	N/A
Diluted EPS	1.56▲	1.37•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$68.9B	$69.2B	N/A
Total Debt	$51.9B▲	$48.8B•	N/A
Working Capital	-$620M▲	-$1.1B•	N/A
Years to Pay Debt	21.31	22.81	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$752M▼	$4.3B•	N/A
Owner Earnings	$3.3B	$3.1B	N/A
CapEx % of Net Income	14.5%	20.7%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Normalized EBITDA	4,408,000	4,506,000
Total Unusual Items		0	0
Total Unusual Items Excluding Goodwill		0	0
Net Income From Continuing Operation Net Minority Interest	2,438,000	2,141,000
Reconciled Depreciation	510,000	521,000
Reconciled Cost Of Revenue	3,241,000	3,560,000
EBITDA	4,408,000	4,506,000
EBIT	3,898,000	3,985,000
Net Interest Income	-237,000	-218,000
Interest Expense	237,000	839,000
Normalized Income	2,438,000	2,141,000
Net Income From Continuing And Discontinued Operation	2,438,000	2,141,000
Total Expenses	6,253,000	6,989,000
Total Operating Income As Reported	3,893,000	3,373,000
Diluted Average Shares	1,559,000	1,558,000
Basic Average Shares	1,558,000	1,557,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,431,000	2,135,000
Net Income Common Stockholders	2,431,000	2,135,000
Otherunder Preferred Stock Dividend	7,000	6,000
Net Income	2,438,000	2,141,000
Minority Interests	-144,000	-109,000
Net Income Including Noncontrolling Interests	2,582,000	2,250,000
Net Income Continuous Operations	2,582,000	2,250,000
Earnings From Equity Interest Net Of Tax	-403,000	-221,000
Tax Provision	676,000	675,000
Pretax Income	3,661,000	3,146,000
Other Income Expense	5,000	-9,000
Other Non Operating Income Expenses	5,000	-9,000
Special Income Charges		0	0
Impairment Of Capital Assets		0	0
Net Non Operating Interest Income Expense	-237,000	-218,000
Interest Expense Non Operating	237,000	839,000
Operating Income	3,893,000	3,373,000
Operating Expense	3,012,000	3,429,000
Selling General And Administration	3,012,000	3,429,000
General And Administrative Expense
Other Gand A
Salaries And Wages
Gross Profit	6,905,000	6,802,000
Cost Of Revenue	3,241,000	3,560,000
Total Revenue	10,146,000	10,362,000
Operating Revenue	10,146,000	63,573,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	550,786	552,660
Ordinary Shares Number	1,558,531	1,556,657
Share Issued	2,109,316	2,109,316
Net Debt	46,498,000	43,963,000
Total Debt	51,948,000	48,835,000
Tangible Book Value	-36,860,000	-38,142,000
Invested Capital	42,669,000	38,841,000
Working Capital	-620,000	-1,064,000
Net Tangible Assets	-36,860,000	-38,142,000
Common Stock Equity	-9,279,000	-9,994,000
Total Capitalization	34,529,000	35,140,000
Total Equity Gross Minority Interest	-7,300,000	-8,028,000
Minority Interest	1,979,000	1,966,000
Stockholders Equity	-9,279,000	-9,994,000
Gains Losses Not Affecting Retained Earnings	-11,788,000	-12,296,000
Other Equity Adjustments	-11,788,000	-12,296,000
Treasury Stock	35,462,000	35,551,000
Retained Earnings	35,538,000	35,400,000
Additional Paid In Capital	2,433,000	2,453,000
Total Liabilities Net Minority Interest	76,213,000	77,213,000
Total Non Current Liabilities Net Minority Interest	49,991,000	51,786,000
Other Non Current Liabilities	1,830,000	2,181,000
Employee Benefits	2,340,000	2,406,000
Non Current Deferred Liabilities	2,013,000	2,065,000
Non Current Deferred Taxes Liabilities	2,013,000	2,065,000
Long Term Debt And Capital Lease Obligation	43,808,000	45,134,000
Long Term Debt	43,808,000	45,134,000
Current Liabilities	26,222,000	25,427,000
Current Debt And Capital Lease Obligation	8,140,000	3,701,000
Current Debt	8,140,000	3,701,000
Other Current Borrowings	2,447,000	3,533,000
Line Of Credit	216,000	168,000
Commercial Paper	5,477,000	0
Pensionand Other Post Retirement Benefit Plans Current	1,227,000	1,545,000
Payables And Accrued Expenses	16,855,000	20,181,000
Current Accrued Expenses	4,419,000	4,652,000
Payables	12,436,000	15,529,000
Dividends Payable	2,313,000	2,312,000
Total Tax Payable	6,196,000	8,810,000
Income Tax Payable	1,091,000	1,255,000
Accounts Payable	3,927,000	4,407,000
Total Assets	68,913,000	69,185,000
Total Non Current Assets	43,311,000	44,822,000
Other Non Current Assets	3,796,000	4,139,000
Non Current Deferred Assets	1,197,000	1,247,000
Non Current Deferred Taxes Assets	1,197,000	1,247,000
Investments And Advances	2,478,000	2,891,000
Long Term Equity Investment	2,478,000	2,891,000
Goodwill And Other Intangible Assets	27,581,000	28,148,000
Other Intangible Assets	10,512,000	10,884,000
Goodwill	17,069,000	17,264,000
Net PPE	8,259,000	8,397,000
Accumulated Depreciation	-11,193,000	-11,219,000
Gross PPE	19,452,000	19,616,000
Construction In Progress		1,471,000	1,081,000
Machinery Furniture Equipment		12,533,000	10,632,000
Buildings And Improvements		5,050,000	4,391,000
Land And Improvements		562,000	581,000
Current Assets	25,602,000	24,363,000
Other Current Assets	2,370,000	2,203,000
Inventory	11,392,000	11,478,000
Finished Goods	6,354,000	6,830,000
Raw Materials	5,038,000	4,648,000
Receivables	6,390,000	5,810,000
Other Receivables	1,270,000	1,238,000
Accounts Receivable	5,120,000	4,572,000
Allowance For Doubtful Accounts Receivable	-40,000	-23,000
Gross Accounts Receivable	5,160,000	4,595,000
Cash Cash Equivalents And Short Term Investments	5,450,000	4,872,000
Cash And Cash Equivalents	5,450,000	4,872,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-752,000	4,265,000
Repayment Of Debt	-2,142,000	-3,052,000
Issuance Of Debt	5,523,000	3,478,000
Capital Expenditure	-353,000	-444,000
End Cash Position	5,470,000	4,892,000
Beginning Cash Position	4,892,000	4,061,000
Effect Of Exchange Rate Changes	-116,000	131,000
Changes In Cash	694,000	700,000
Financing Cash Flow	1,096,000	-3,581,000
Cash Flow From Continuing Financing Activities	1,096,000	-3,581,000
Net Other Financing Charges	22,000	21,000
Cash Dividends Paid	-2,307,000	-2,295,000
Common Stock Dividend Paid	-2,307,000	-2,295,000
Net Issuance Payments Of Debt	3,381,000	-1,307,000
Net Short Term Debt Issuance	5,523,000	-1,714,000
Short Term Debt Payments	0		-442,000
Short Term Debt Issuance	5,523,000		0
Net Long Term Debt Issuance	-2,142,000	407,000
Long Term Debt Payments	-2,142,000	-2,882,000
Long Term Debt Issuance	0	3,289,000
Investing Cash Flow	-3,000	-428,000
Cash Flow From Continuing Investing Activities	-3,000	-428,000
Net Other Investing Changes	295,000	-2,199,000
Net Investment Purchase And Sale	90,000	2,232,000
Sale Of Investment	95,000
Purchase Of Investment	-5,000
Net Business Purchase And Sale	-35,000	-17,000
Sale Of Business		-2,000	135,000
Capital Expenditure Reported	-353,000	-444,000
Operating Cash Flow	-399,000	4,709,000
Cash Flow From Continuing Operating Activities	-399,000	4,709,000
Change In Working Capital	-3,873,000	2,020,000
Change In Other Working Capital	-171,000	298,000
Change In Payables And Accrued Expense	-3,051,000	2,614,000
Change In Accrued Expense	-2,734,000	2,328,000
Change In Payable	-317,000	286,000
Change In Account Payable	-317,000	286,000
Change In Inventory	-11,000	-1,153,000
Change In Receivables	-640,000	261,000
Other Non Cash Items	449,000	238,000
Asset Impairment Charge		0	1,984,000
Deferred Tax	-67,000	-414,000
Deferred Income Tax	-67,000	-414,000
Depreciation Amortization Depletion	510,000	521,000
Depreciation And Amortization	510,000	521,000
Gain Loss On Sale Of Business		94,000
Net Income From Continuing Operations	2,582,000	2,250,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $9.3B ▲ $10.1B +9.1%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 67.4% ▲ 68.1% +0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 41.9% ▲ 38.4% -3.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 28.9% ▼ 24.0% -4.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$10.1B/qtr (≈$40.6B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.98x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$752M

vs Positive

Operating Cash Flow

-$399M

Latest quarter · Buffett's cash reality check

ROIC

7.2%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

⚠ Negative Net Assets

Net Assets: -$7.3B

⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Tobacco. You can manually compare PM against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.16%

Low — management has little skin in the game

Return on Assets (ROA)

3.5%

Fair — average asset utilization

Debt Trend YoY

+6.4% YoY

Debt is roughly stable

Leadership Team

Jacek Olczak

Group CEO & Director

Age 60

Pay: $7,054,208

0.289% of net income

Emmanuel Babeau

Group Chief Financial Officer

Age 58

Pay: $4,051,987

0.166% of net income

Frederic de Wilde

CEO of PMI International

Age 58

Pay: $3,581,310

0.147% of net income

Stacey Kennedy

CEO of PMI U.S.

Age 52

Pay: $3,353,263

0.138% of net income

Massimo Andolina

President of Europe Region

Age 56

Pay: $3,009,359

0.123% of net income

Top Institutional Holders

Institution	% Owned	Shares
Capital World Investors	8.56%	133,450,504
Blackrock Inc.	6.90%	107,532,073
Vanguard Capital Management LLC	6.49%	101,156,274
Capital Research Global Investors	5.12%	79,823,025
Capital International Investors	4.67%	72,761,312
State Street Corporation	3.53%	55,033,026
JPMORGAN CHASE & CO	3.31%	51,591,197
GQG Partners LLC	3.21%	50,105,900

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.41

Low volatility — more stable than the market

Short Interest

1.0% of float

Low short interest — market is not heavily bearish

Current Ratio

0.98x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $142.11 Current: $178.40 High: $193.05

Currently at 71% of 52-week range

Philip Morris International Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis