Image Source: Unsplash

As part of our ongoing series, each week we will focus on one of the stocks from our stock screeners, and take a look at why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our Stock Screeners is:

Philip Morris International Inc (PM)

Philip Morris International is an international tobacco company with a product portfolio primarily consisting of cigarettes and reduced-risk products, including heat-not-burn, vapor, and oral nicotine products, which are sold in markets outside the United States.

The company diversified away from cigarettes with the acquisition in 2022 of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches, primarily in the US and Scandinavia. It also diversified away from nicotine products with the acquisition of Vectura, a provider of innovative inhaled drug delivery solutions, in 2021.

A quick look at the share price history (below) over the past twelve months shows that the price is up 8.60%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

• Market cap: $157.12 billion
• Enterprise value: $205.15 billion

Operating Earnings

• Operating earnings: $12.55 billion

Acquirer’s Multiple

• Acquirer’s multiple: 16.40

Free Cash Flow (TTM)

• Free cash flow: $8.94 billion

FCF/EV Yield Percentage:

• FCF/EV yield: 5.69

Shareholder Yield Percentage:

• Shareholder yield: 5.10

Other Indicators

• Piotroski F score: 6.00
• Dividend yield: 5.10
• ROA (five-year average percentage): 19

More By This Author: