Philip Morris Gross Profit vs. Operating Margin

PM Stock  USD 126.62  0.38  0.30%   
Based on Philip Morris' profitability indicators, Philip Morris International may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Philip Morris' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2006-03-31
Previous Quarter
5.9 B
Current Value
6.5 B
Quarterly Volatility
1.8 B
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 15th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.36, while Price To Sales Ratio is likely to drop 3.33. At this time, Philip Morris' Income Before Tax is very stable compared to the past year. As of the 15th of December 2024, Net Income From Continuing Ops is likely to grow to about 8.9 B, while Operating Income is likely to drop about 11.5 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.6335
Way Down
Slightly volatile
Net Profit Margin0.190.2215
Fairly Down
Slightly volatile
Operating Profit Margin0.30.361
Significantly Down
Slightly volatile
Pretax Profit Margin0.270.3016
Moderately Down
Slightly volatile
Return On Assets0.210.1193
Way Up
Very volatile
For Philip Morris profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Philip Morris to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Philip Morris International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Philip Morris's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Philip Morris International over time as well as its relative position and ranking within its peers.
  

Philip Morris' Revenue Breakdown by Earning Segment

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Is Tobacco space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Philip Morris. If investors know Philip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Philip Morris listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.493
Dividend Share
5.25
Earnings Share
6.31
Revenue Per Share
23.958
Quarterly Revenue Growth
0.084
The market value of Philip Morris Intern is measured differently than its book value, which is the value of Philip that is recorded on the company's balance sheet. Investors also form their own opinion of Philip Morris' value that differs from its market value or its book value, called intrinsic value, which is Philip Morris' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Philip Morris' market value can be influenced by many factors that don't directly affect Philip Morris' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Philip Morris' value and its price as these two are different measures arrived at by different means. Investors typically determine if Philip Morris is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Philip Morris' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Philip Morris Intern Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Philip Morris's current stock value. Our valuation model uses many indicators to compare Philip Morris value to that of its competitors to determine the firm's financial worth.
Philip Morris International is regarded fourth in gross profit category among its peers. It also is regarded fourth in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Philip Morris International is about  47,280,681,557 . At this time, Philip Morris' Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Philip Morris by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Philip Operating Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Philip Morris

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
20.53 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Philip Morris

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.43 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Philip Operating Margin Comparison

Philip Morris is currently under evaluation in operating margin category among its peers.

Philip Morris Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Philip Morris, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Philip Morris will eventually generate negative long term returns. The profitability progress is the general direction of Philip Morris' change in net profit over the period of time. It can combine multiple indicators of Philip Morris, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-11.8 B-11.2 B
Operating Income12.7 B11.5 B
Income Before Tax10.6 B10.8 B
Total Other Income Expense Net-2.1 B-2 B
Net Income8.3 B8.2 B
Income Tax Expense2.3 B2.1 B
Net Income Applicable To Common Shares10.4 B8.2 B
Net Income From Continuing Ops8.3 B8.9 B
Non Operating Income Net Other67.8 M75 M
Interest Income465 M499 M
Net Interest Income-1.1 B-1.1 B
Change To Netincome-294.3 M-279.6 M
Net Income Per Share 5.02  3.42 
Income Quality 1.11  0.90 
Net Income Per E B T 0.73  0.57 

Philip Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Philip Morris. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Philip Morris position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Philip Morris' important profitability drivers and their relationship over time.

Use Philip Morris in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Philip Morris position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Philip Morris will appreciate offsetting losses from the drop in the long position's value.

Philip Morris Pair Trading

Philip Morris International Pair Trading Analysis

The ability to find closely correlated positions to Philip Morris could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Philip Morris when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Philip Morris - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Philip Morris International to buy it.
The correlation of Philip Morris is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Philip Morris moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Philip Morris Intern moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Philip Morris can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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To fully project Philip Morris' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Philip Morris Intern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Philip Morris' income statement, its balance sheet, and the statement of cash flows.
Potential Philip Morris investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Philip Morris investors may work on each financial statement separately, they are all related. The changes in Philip Morris's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Philip Morris's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.