3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Philip Morris International's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -149.25%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Philip Morris International's 3-Year ROIIC % or its related term are showing as below:
PM's 3-Year ROIIC % is ranked worse than 95.65% of 46
companies
in the Tobacco Products industry
Industry Median: 3.585
vs PM: -149.25
Philip Morris International (NYSE:PM) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Philip Morris International 3-Year ROIIC % Related Terms
Philip Morris International 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Philip Morris International (PM) has a 3-Year ROIIC % of -149.25 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Philip Morris International and its competitors. According to the industry distribution chart, Philip Morris International ranks #44 out of 46 companies in the Tobacco Products industry, placing it in the top 95.7%.
Is Philip Morris International's 3-Year ROIIC % too high?
Philip Morris International's current 3-Year ROIIC % is -149.25. Based on the distribution chart, Philip Morris International ranks #44 out of 46 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, Philip Morris International has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's 3-Year ROIIC % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #44 out of 46 companies for 3-Year ROIIC %. This places Philip Morris International in the lower half of its industry. The industry median 3-Year ROIIC % is 3.59. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Tobacco Products company?
The median 3-Year ROIIC % among Tobacco Products companies is 3.59, based on 46 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Philip Morris International and its competitors. For the Tobacco Products industry, the median 3-Year ROIIC % is 3.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current 3-Year ROIIC % is -149.25. 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 (PM) is currently considered Modestly Overvalued. The stock's GF Value™ is $143.12, compared to a current price of $182.27 — trading 27.4% above its estimated fair value. The current 3-Year ROIIC % is -149.25. Philip Morris International's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Philip Morris International (PM), the current 3-Year ROIIC % is -149.25 as of Dec. 2025. 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 (PM) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of $182.27 is trading 27.4% above its estimated GF Value™ of $143.12.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for PM:
3-Year ROIIC %: -149.25
GF Value™: $143.12 vs. price of $182.27 (27.4% above fair value)
No single metric tells the full story. See the 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.
86GF Score
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