Philip Morris InternationalXSWX:PMI 87 Net Margin % is 24.03% as of Mar. 2026, which is 9% below its 10-year median of 26.41. GuruFocus rates XSWX:PMI with a GF Score™ of 87/100 and a GF Value™ of CHF115.94 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 48 Tobacco Products companies, Philip Morris International ranks better than 87.5% on this metric.
The historical rank and industry rank for Philip Morris International's Net Margin % or its related term are showing as below:
XSWX:PMI'
s Net Margin % Range Over the Past 10 Years
Min: 18.63 Med: 26.41 Max: 29
Current: 26.74
XSWX:PMI's Net Margin % is ranked better than 87.5% of 48
companies
in the Tobacco Products industry
Industry Median: 7.245
vs XSWX:PMI: 26.74
Philip Morris International (XSWX:PMI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Philip Morris International Net Margin % Related Terms
Philip Morris International Net Margin % Historical Data
* 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.
For the Tobacco subindustry, Philip Morris International's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Net Margin % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Net Margin % falls into.
* 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.
Philip Morris International (XSWX:PMI) has a Net Margin % of 24.03% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Philip Morris International and its competitors. This is near median its historical median of 26.41. Over the past decade, Philip Morris International's Net Margin % has ranged from 18.63 to 29.00. According to the industry distribution chart, Philip Morris International ranks #6 out of 48 companies in the Tobacco Products industry, placing it in the top 12.5%.
Is Philip Morris International's Net Margin % too high?
Philip Morris International's current Net Margin % of 24.03% is near median its 10-year median of 26.41. Over the past 10 years, this metric has ranged from a low of 18.63 to a high of 29.00. The Tobacco Products industry median Net Margin % is 7.25. Philip Morris International's value of 24.03% is 231.7% above this industry median. Based on the distribution chart, Philip Morris International ranks #6 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Philip Morris International has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Net Margin % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #6 out of 48 companies for Net Margin %. This places Philip Morris International in the top 13% of its industry — outperforming the majority of peers. The industry median Net Margin % is 7.25. Philip Morris International's value of 24.03% is 231.7% above this benchmark. Historically, Philip Morris International's own Net Margin % has ranged from 18.63 to 29.00 over the past decade. While the company's 10-year median is 26.41 vs. the industry median of 7.25, Philip Morris International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Tobacco Products company?
The median Net Margin % among Tobacco Products companies is 7.25, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current Net Margin % of 24.03% is 231.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median Net Margin % is 7.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current Net Margin % is 24.03%, which is near median its own 10-year median of 26.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philip Morris International stock overvalued right now?
Based on GuruFocus' analysis, Philip Morris International (XSWX:PMI) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF115.94, compared to a current price of CHF145.00 — trading 25.1% above its estimated fair value. The current Net Margin % is 24.03%, which is near median its 10-year median of 26.41 and 231.7% above the Tobacco Products industry median of 7.25. Philip Morris International's overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Philip Morris International (XSWX:PMI), the current Net Margin % is 24.03% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Philip Morris International (XSWX:PMI) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of CHF145.00 is trading 25.1% above its estimated GF Value™ of CHF115.94.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for XSWX:PMI:
Net Margin %: 24.03% (near median its 10-year median of 26.41)
GF Value™: CHF115.94 vs. price of CHF145.00 (25.1% above fair value)
Industry Position: 231.7% above the Tobacco Products median (#6 of 48)
No single metric tells the full story. See the XSWX:PMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heat sticks, vapes, and oral nicotine offerings, primarily outside of the US. With the 2023 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI is not only dominant in smokable products but also has the Iqos and Zyn brands, which respectively dominate heated tobacco and nicotine pouches in most markets. It also owns the Veev brand in vapes.
87GF Score
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