Philip Morris InternationalWBO:PMOR 83 ROA % is 14.21% as of Mar. 2026, which is 19% below its 10-year median of 17.48. GuruFocus rates WBO:PMOR with a GF Score™ of 83/100 and a GF Value™ of €125.30 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 49 Tobacco Products companies, Philip Morris International ranks better than 73.47% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Philip Morris International's annualizedNet Income for the quarter that ended in Mar. 2026 was €8,435 Mil.
Philip Morris International's average Total Assets over the quarter that ended in Mar. 2026 was €59,347 Mil. Therefore, Philip Morris International's annualized ROA % for the quarter that ended in Mar. 2026 was 14.21%.
The historical rank and industry rank for Philip Morris International's ROA % or its related term are showing as below:
WBO:PMOR'
s ROA % Range Over the Past 10 Years
Min: 11.11 Med: 17.48 Max: 21.16
Current: 16.38
During the past 13 years, Philip Morris International's highest ROA % was 21.16%. The lowest was 11.11%. And the median was 17.48%.
WBO:PMOR's ROA % is ranked better than 73.47% of 49
companies
in the Tobacco Products industry
Industry Median: 6.68
vs WBO:PMOR: 16.38
Philip Morris International (WBO:PMOR) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's ROA % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Philip Morris International (WBO:PMOR) has a ROA % of 14.21% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Philip Morris International and its competitors. This is 19% below median its historical median of 17.48. Over the past decade, Philip Morris International's ROA % has ranged from 11.11 to 21.16. According to the industry distribution chart, Philip Morris International ranks #13 out of 49 companies in the Tobacco Products industry, placing it in the top 26.5%.
Is Philip Morris International's ROA % too high?
Philip Morris International's current ROA % of 14.21% is 19% below median its 10-year median of 17.48. Over the past 10 years, this metric has ranged from a low of 11.11 to a high of 21.16. The Tobacco Products industry median ROA % is 6.68. Philip Morris International's value of 14.21% is 112.7% above this industry median. Based on the distribution chart, Philip Morris International ranks #13 out of 49 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Philip Morris International has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's ROA % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #13 out of 49 companies for ROA %. This puts Philip Morris International in the upper half of its industry. The industry median ROA % is 6.68. Philip Morris International's value of 14.21% is 112.7% above this benchmark. Historically, Philip Morris International's own ROA % has ranged from 11.11 to 21.16 over the past decade. While the company's 10-year median is 17.48 vs. the industry median of 6.68, 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 ROA % for a Tobacco Products company?
The median ROA % among Tobacco Products companies is 6.68, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current ROA % of 14.21% is 112.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median ROA % is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current ROA % is 14.21%, which is 19% below median its own 10-year median of 17.48. 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 (WBO:PMOR) is currently considered Modestly Overvalued. The stock's GF Value™ is €125.30, compared to a current price of €156.70 — trading 25.1% above its estimated fair value. The current ROA % is 14.21%, which is 19% below median its 10-year median of 17.48 and 112.7% above the Tobacco Products industry median of 6.68. Philip Morris International's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Philip Morris International (WBO:PMOR), the current ROA % is 14.21% 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 (WBO:PMOR) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of €156.70 is trading 25.1% above its estimated GF Value™ of €125.30.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for WBO:PMOR:
ROA %: 14.21% (19% below median its 10-year median of 17.48)
GF Value™: €125.30 vs. price of €156.70 (25.1% above fair value)
Industry Position: 112.7% above the Tobacco Products median (#13 of 49)
No single metric tells the full story. See the WBO:PMOR 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.
83GF Score
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