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Philip Morris International Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Philip Morris International has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Philip Morris International's Piotroski F-Score or its related term are showing as below:

PM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Philip Morris International was 8. The lowest was 3. And the median was 6.


Philip Morris International Piotroski F-Score Historical Data

The historical data trend for Philip Morris International's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Philip Morris International Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 5.00 6.00 8.00

Philip Morris International Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 8.00 6.00 6.00

Competitive Comparison

For the Tobacco subindustry, Philip Morris International's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Philip Morris International Piotroski F-Score Distribution

For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Philip Morris International's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 2426 + 2093 + 2331 + 2233 = $9,083 Mil.
Cash Flow from Operations was 3870 + 4032 + 1118 + 3524 = $12,544 Mil.
Revenue was 8122 + 8104 + 7746 + 7832 = $31,804 Mil.
Gross Profit was 5526 + 5297 + 5138 + 5184 = $21,145 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(40686 + 41589 + 41290 + 41733 + 40960) / 5 = $41251.6 Mil.
Total Assets at the begining of this year (Jun21) was $40,686 Mil.
Long-Term Debt & Capital Lease Obligation was $22,345 Mil.
Total Current Assets was $18,376 Mil.
Total Current Liabilities was $20,547 Mil.
Net Income was 2307 + 1976 + 2418 + 2172 = $8,873 Mil.

Revenue was 7446 + 7444 + 7585 + 7594 = $30,069 Mil.
Gross Profit was 5030 + 4872 + 5311 + 5241 = $20,454 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(39162 + 39129 + 44815 + 39804 + 40686) / 5 = $40719.2 Mil.
Total Assets at the begining of last year (Jun20) was $39,162 Mil.
Long-Term Debt & Capital Lease Obligation was $27,414 Mil.
Total Current Assets was $18,743 Mil.
Total Current Liabilities was $15,884 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Philip Morris International's current Net Income (TTM) was 9,083. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Philip Morris International's current Cash Flow from Operations (TTM) was 12,544. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=9083/40686
=0.22324633

ROA (Last Year)=Net Income/Total Assets (Jun20)
=8873/39162
=0.22657168

Philip Morris International's return on assets of this year was 0.22324633. Philip Morris International's return on assets of last year was 0.22657168. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Philip Morris International's current Net Income (TTM) was 9,083. Philip Morris International's current Cash Flow from Operations (TTM) was 12,544. ==> 12,544 > 9,083 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=22345/41251.6
=0.54167596

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=27414/40719.2
=0.67324505

Philip Morris International's gearing of this year was 0.54167596. Philip Morris International's gearing of last year was 0.67324505. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=18376/20547
=0.89433981

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=18743/15884
=1.17999245

Philip Morris International's current ratio of this year was 0.89433981. Philip Morris International's current ratio of last year was 1.17999245. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Philip Morris International's number of shares in issue this year was 1552. Philip Morris International's number of shares in issue last year was 1560. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=21145/31804
=0.66485348

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=20454/30069
=0.68023546

Philip Morris International's gross margin of this year was 0.66485348. Philip Morris International's gross margin of last year was 0.68023546. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=31804/40686
=0.78169395

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=30069/39162
=0.76781063

Philip Morris International's asset turnover of this year was 0.78169395. Philip Morris International's asset turnover of last year was 0.76781063. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Philip Morris International has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Philip Morris International  (NYSE:PM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Philip Morris International Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Philip Morris International's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Philip Morris International Business Description

Philip Morris International logo
Address
120 Park Avenue, New York, NY, USA, 10017
Philip Morris International is a leading international tobacco company engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside the United States. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, the company aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. Management's vision is that these products ultimately replace cigarettes.
Executives
Temperley Dessislava director CIMPRESS PLC BUILDING D, XEROX TECHNOLOGY PARK DUNDALK, COUNTY LOUTH L2 A91 H9N9
Dobrowolski Reginaldo officer: Vice President and Controller 120 PARK AVENUE NEW YORK NY 10017
Daboub Juan J. director 5100 W. 115TH PLACE LEAWOOD KS 66211
Yanai Shlomo director ONE MEADOWLANDS PLAZA EAST RUTHERFORD NJ 07073
Bough Bonin director 120 PARK AVENUE NEW YORK NY 10017
Insuasty Jorge officer: Chief Life Sciences Officer 120 PARK AVENUE NEW YORI NY 10017
Combes Michel director 101 WEST 24TH STREET NEW YORK NY 10011
Noto Lucio A director C/O PHILIP MORRIS INTERNATIONAL INC. 120 PARK AVENUE NEW YORK NY 10017
Makihara Jun director C/O MONEX GROUP, INC. 1-11-1, MARUNOUCHI, CHIYODA-KU TOKYO M0 100-6219
Verdeaux Gregoire officer: Sr. VP External Affairs 120 PARK AVENUE NEW YORK NY 10017
Folsom Suzanne R officer: Sr VP & General Counsel C/O PHILIP MORRIS INTERNATIONAL INC. 120 PARK AVENUE NEW YORK NY 10017
Babeau Emmanuel officer: Chief Financial Officer 120 PARK AVENUE NEW YORK NY 10017
Muenster Silke officer: Chief Diversity Officer 120 PARK AVENUE NEW YORK NY 10017
Li Bin officer: Chief Product Officer 120 PARK AVENUE NEW YORK NY 10017
Volpetti Stefano officer: Chief Consumer Officer 120 PARK AVENUE NEW YORK NY 10017

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