Philip Morris International (MEX:PM) ROE %: Negative Equity% (As of Mar. 2026)


MEX:PM Philip Morris International Inc MEX:PM
75 GF Score
Price MXN3,138.00
GF Value MXN2,509.10
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Philip Morris International ROE %?

Philip Morris International MEX:PM +0.22% 75 ROE % is Negative Equity% as of Mar. 2026. GuruFocus rates MEX:PM with a GF Score™ of 75/100 and a GF Value™ of MXN2,509.10 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 45 Tobacco Products companies, Philip Morris International ranks better than 97.78% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Philip Morris International's annualized net income for the quarter that ended in Mar. 2026 was MXN175,855 Mil. Philip Morris International's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN-173,637 Mil. Therefore, Philip Morris International's annualized ROE % for the quarter that ended in Mar. 2026 was Negative Equity%.

The historical rank and industry rank for Philip Morris International's ROE % or its related term are showing as below:

MEX:PM' s ROE % Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: Negative Equity

MEX:PM's ROE % is ranked better than
97.78% of 45 companies
in the Tobacco Products industry
Industry Median: 16.13 vs MEX:PM: Negative Equity

Philip Morris International  (MEX:PM) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=175854.892/-173637.1945
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(175854.892 / 731839.096)*(731839.096 / 1244205.9055)*(1244205.9055 / -173637.1945)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.03 %*0.5882*N/A
=ROA %*Equity Multiplier
=14.13 %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=175854.892/-173637.1945
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (175854.892 / 264070.86) * (264070.86 / 280805.204) * (280805.204 / 731839.096) * (731839.096 / 1244205.9055) * (1244205.9055 / -173637.1945)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6659 * 0.9404 * 38.37 % * 0.5882 * N/A
=Negative Equity %

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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Philip Morris International ROE % Related Terms


Philip Morris International ROE % Historical Data

* Premium members only.

The historical data trend for Philip Morris International's ROE % 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.

Philip Morris International ROE % Chart

Philip Morris International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Philip Morris International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial 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 Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

MEX:PM vs MO, TPB, UVV: ROE % Comparison

For the Tobacco subindustry, Philip Morris International's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's ROE % distribution charts can be found below:

* The bar in red indicates where Philip Morris International's ROE % falls into.


MEX:PM
75GF Score
Philip Morris International Inc MEX:PM
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Philip Morris International ROE % Calculation

Philip Morris International's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=204328.684/( (-245054.475+-179948.966)/ 2 )
=204328.684/-212501.7205
=Negative Equity %

Philip Morris International's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=175854.892/( (-179948.966+-167325.423)/ 2 )
=175854.892/-173637.1945
=Negative Equity %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of Negative Equity% mean?
Philip Morris International (MEX:PM) has a ROE % of Negative Equity% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Philip Morris International and its competitors. According to the industry distribution chart, Philip Morris International ranks #1 out of 45 companies in the Tobacco Products industry, placing it in the top 2.2%.
Is Philip Morris International's ROE % too high?
Philip Morris International's current ROE % is Negative Equity%. Based on the distribution chart, Philip Morris International ranks #1 out of 45 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 ROE % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #1 out of 45 companies for ROE %. This places Philip Morris International in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 16.13. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Tobacco Products company?
The median ROE % among Tobacco Products companies is 16.13, based on 45 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median ROE % is 16.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current ROE % is Negative Equity%. 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 MXN2,509.10, compared to a current price of MXN3,138.00 — trading 25.1% above its estimated fair value. The current ROE % is Negative Equity%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Philip Morris International (MEX:PM), the current ROE % is Negative Equity% 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 MXN3,138.00 is trading 25.1% above its estimated GF Value™ of MXN2,509.10. GuruFocus considers Philip Morris International to be Modestly Overvalued.

Key valuation signals for MEX:PM:

  • ROE %: Negative Equity%
  • GF Value™: MXN2,509.10 vs. price of MXN3,138.00 (25.1% above fair value)
  • GF Score™: 75/100 with 7 warning signs

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.


Philip Morris International Business Description

Address 677 Washington Boulevard, Suite 1100, Stamford, CT, USA, 06901
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

Get the complete analysis for MEX:PM

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN3,138.00
Price
MXN2,509.10
GF Value