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Pfizer fundamentals

Pfizer Inc  PFE

Summary (from latest 2016 annual report)

  • Total stockholders' equity : 59.54 billion USD
  • Market Cap is 196.9 billion USD ( last price of the stock is 33.03 USD)
  • Pfizer Inc is a research-based biopharmaceutical company. The Company's portfolio includes medicines, and vaccines as well as many of the consumer healthcare products
  •  Total stockholders' equity has decreased from 64.72 billion USD in 2015 to 59.54 billion in 2016 (from latest annual report)
  • Company has 2.59 billion USD in cash on account (from latest annual report)
  • Company has 84.36 billion USD treasury stock (this is negative item in the balance sheet and because of this total stockholders' equity is only 59.54 billion USD)
  • In 2016 long-term debt was 31.39 billion USD, short – term debt was 10.68 billion USD,  in 2015 long-term debt was 28.81 billion USD, short – term debt was 10.16 billion USD
  • Company's revenue increased in 2016 to 52.82 billion USD from 48.85 billion in 2015
  • Net income in 2016 was 7.21 billion USD, Net income in 2015 was 6.96 billion USD
  • In last five years, PFE has spent 7.85 billion USD on capital expenditures
  • In 2016 company paid 7.31 billion USD dividend to its shareholders (In last six years, Pfizer paid 40.61 billion USD dividend to its shareholders)

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is big (42.07 billion usd), big amount of cash on company's account, ROE is around 11 %).

 

In last six years, Pfizer paid 40.61 billion USD dividend to its shareholders

Pfizer Inc is a research-based biopharmaceutical company. The Company has five operating segments: Primary Care, Specialty Care and Oncology, Established Products and Emerging Markets, Animal Health, and Consumer Healthcare. Revenues are derived from the sale of the company products and, to a much lesser extent, from alliance agreements, under which Pfizer co-promote products discovered or developed by other companies or by them. The majority of the company revenues come from the manufacture and sale of biopharmaceutical products. Company's revenue increased in 2016 to 52.82 billion USD from 48.85 billion in 2015. Net income in 2016 was 7.21 billion USD, Net income in 2015 was 6.96 billion USD. In last six years, Pfizer paid 40.61 billion USD dividend to its shareholders.

Total debt is big (42.07 billion USD) but this debt is also connected with acquisitions. Pfizer has spent more than 200 billion USD on acquisitions in last 17 years (stock and cash), the biggest of them include Warner–Lambert in 2000 for 110 billion USD (Pfizer paid 90.3 billion USD in stock and rest in cash to acquire Warner-Lambert), Pharmacia in 2003 for 60 billion USD in stock (Pharmacia shareholders receive 1.4 shares of Pfizer stock for each share of Pharmacia), Wyeth  in 2009 for 68 billion USD, Hospira in 2015 for 15.2 billion USD in cash. On September 28, 2016, Pfizer acquired Medivation for approximately $14.3 billion in cash ($13.9 billion, net of cash acquired). On June 24, 2016, Pfizer acquired Anacor for approximately $4.9 billion in cash ($4.5 billion net of cash acquired), plus $698 million debt assumed.

Pfizer Inc reported a bigger-than-expected quarterly profit (Q1 2017), helped by higher sales of breast cancer drug Ibrance and pain relief drug Lyrica. Revenue fell 1.7 percent to $12.78 billion, below the average estimate of $13.09 billion. According to analysts, the company's fundamentals are improving. The dividend, revenue, free cash flow and earnings have all grown nicely over the past 24 months. The 52-week price range for Pfizer has been $29.83 to $37.39. At the current annual dividend of $1.28, that's a yield range of 3.42% to 4.29%. Strong free cash flow allows Pfizer to return a significant amount of capital back to shareholders through dividends and share repurchases. Pfizer repurchased $3.98 billion worth of stock in 2016 and a whopping $43.9 billion over the previous 6 years, net of proceeds from the issuance of stock purchased by employees.

 

Technical analysis

On this chart, I have marked support levels. If the price breaks $33 it would be a very strong "SELL" signal and we have an open way to $31. If the price jumps above this line that would be a "BUY" signal and open way to $36.

 

Conclusion - Pizer is a very good opportunity for the long - term investors

My opinion is that Pizer is a very good opportunity for the long - term investors. Company's revenue increased in 2016 to 52.82 billion USD from 48.85 billion in 2015. Net income in 2016 was 7.21 billion USD, Net income in 2015 was 6.96 billion USD. In last six years, Pfizer paid 40.61 billion USD dividend to its shareholders. With a forward P/E ratio of 12, Pfizer currently trades around 31% below the S&P average of 17.5. Positive thing is that analysts have a 'buy' rating for Pfizer (no 'sell' or 'underweight' ratings) with an average target price of $37.81. Analysts estimates for FY 2017 is revenue between $52B - 54B. Analysts also project earnings to be $2.55/share (FY 2017) and $2.77/share (FY 2018), which equals forward P/E's of 13.3 and 12.22. As long the price is above 30 USD,  this stock is in the "BUY" zone and there is no indication of the trend reversal. If the price falls, every price in a range from 25 USD - 30 USD is a very good opportunity to invest in PFE, and investors will certainly earn at least 30% in some period in next 3 years. This stock is correlated with the situation in the USA, the global economic situation also affects the price of this stock.

 

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