Philip Morris: No Margin Of Safety
Portfolio Pulse from
Philip Morris reported strong Q4 results, exceeding EPS and revenue estimates due to high demand for non-traditional products like IQOS and ZYN, which now account for 40% of revenue. Despite this, the stock is rated as hold due to a high forward P/E ratio of 18.7X.
February 10, 2025 | 2:30 am
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NEUTRAL IMPACT
Philip Morris exceeded Q4 EPS and revenue estimates, driven by non-traditional products like IQOS and ZYN, which now make up 40% of revenue. Despite strong performance, the stock is rated hold due to a high forward P/E ratio of 18.7X.
Philip Morris' strong Q4 results and increased revenue from non-traditional products are positive, but the high forward P/E ratio suggests the stock may be overvalued, justifying a hold rating.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100