Philip Morris InternationalMEX:PM -1.57%75 Return-on-Tangible-Asset is 23.70% as of Mar. 2026, which is 0% below its 10-year median of 23.75. GuruFocus rates MEX:PM with a GF Score™ of 75/100 and a GF Value™ of MXN2,488.18 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 49 Tobacco Products companies, Philip Morris International ranks better than 81.63% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Philip Morris International's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN175,855 Mil. Philip Morris International's average total tangible assets for the quarter that ended in Mar. 2026 was MXN742,114 Mil. Therefore, Philip Morris International's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 23.70%.
The historical rank and industry rank for Philip Morris International's Return-on-Tangible-Asset or its related term are showing as below:
MEX:PM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 19.46 Med: 23.75 Max: 30.3
Current: 28.04
During the past 13 years, Philip Morris International's highest Return-on-Tangible-Asset was 30.30%. The lowest was 19.46%. And the median was 23.75%.
MEX:PM's Return-on-Tangible-Asset is ranked better than 81.63% of 49
companies
in the Tobacco Products industry
Industry Median: 10.52
vs MEX:PM: 28.04
Philip Morris International (MEX:PM) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Philip Morris International Return-on-Tangible-Asset Related Terms
Philip Morris International Return-on-Tangible-Asset 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.
Philip Morris International Return-on-Tangible-Asset Chart
MEX:PM vs MO, TPB, UVV: Return-on-Tangible-Asset Comparison
For the Tobacco subindustry, Philip Morris International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 23.70% mean?
Philip Morris International (MEX:PM) has a Return-on-Tangible-Asset of 23.70% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Philip Morris International and its competitors. This is near median its historical median of 23.75. Over the past decade, Philip Morris International's Return-on-Tangible-Asset has ranged from 19.46 to 30.30. According to the industry distribution chart, Philip Morris International ranks #9 out of 49 companies in the Tobacco Products industry, placing it in the top 18.4%.
Is Philip Morris International's Return-on-Tangible-Asset too high?
Philip Morris International's current Return-on-Tangible-Asset of 23.70% is near median its 10-year median of 23.75. Over the past 10 years, this metric has ranged from a low of 19.46 to a high of 30.30. The Tobacco Products industry median Return-on-Tangible-Asset is 10.52. Philip Morris International's value of 23.70% is 125.3% above this industry median. Based on the distribution chart, Philip Morris International ranks #9 out of 49 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 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Return-on-Tangible-Asset compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #9 out of 49 companies for Return-on-Tangible-Asset. This places Philip Morris International in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 10.52. Philip Morris International's value of 23.70% is 125.3% above this benchmark. Historically, Philip Morris International's own Return-on-Tangible-Asset has ranged from 19.46 to 30.30 over the past decade. While the company's 10-year median is 23.75 vs. the industry median of 10.52, 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 Return-on-Tangible-Asset for a Tobacco Products company?
The median Return-on-Tangible-Asset among Tobacco Products companies is 10.52, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current Return-on-Tangible-Asset of 23.70% is 125.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Asset is 10.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current Return-on-Tangible-Asset is 23.70%, which is near median its own 10-year median of 23.75. 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 (MEX:PM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,488.18, compared to a current price of MXN3,155.00 — trading 26.8% above its estimated fair value. The current Return-on-Tangible-Asset is 23.70%, which is near median its 10-year median of 23.75 and 125.3% above the Tobacco Products industry median of 10.52. Philip Morris International's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Philip Morris International (MEX:PM), the current Return-on-Tangible-Asset is 23.70% 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 (MEX:PM) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of MXN3,155.00 is trading 26.8% above its estimated GF Value™ of MXN2,488.18.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for MEX:PM:
Return-on-Tangible-Asset: 23.70% (near median its 10-year median of 23.75)
GF Value™: MXN2,488.18 vs. price of MXN3,155.00 (26.8% above fair value)
Industry Position: 125.3% above the Tobacco Products median (#9 of 49)
No single metric tells the full story. See the MEX:PM 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.
75GF Score
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