Pfizer Inc. (PFE) currently maintains a market capitalization at $204 billion and a trailing 12-month revenue near $60 billion. The company is leading the industry with its revenues and blockbuster drugs. The stock has done well the past year, approximately up almost 30% and is currently trading at $27.70 near its 52-week high. So can the company keep up the positive momentum?
The company has blown past consensus analysts' estimates in three of the last four quarters. It still looks relatively cheap at a 14 times trailing and 10.5x forward P/E. This past year, Pfizer generated more than $18 billion in free cash flow, which allowed the company to raise its tasty 3.5% dividend yield yet again this past quarter. Further, the company has had three recent catalysts which will carry the stock even higher.
- Yesterday, AMC, the company presented positive results from a Phase III study demonstrating the immunogenicity, tolerability and safety of Prevnar 13 Conjugate Vaccine in adults infected with human immunodeficiency virus. The results were presented at the 20th Conference on Retroviruses and Opportunistic Infections (CROI) in Atlanta, Ga. Dr. William Gruber, senior vice president, Pfizer Vaccine Clinical Research and Development stated at the conference, "These data add to the compelling body of research for Prevnar 13, Pfizer is committed to providing information about this important vaccine across all age groups, especially those with conditions that put them at higher risk of pneumococcal infections, such as those with HIV infection."
- On Tuesday, the company reported that the Chantix litigation is almost complete. The drugmaker has settled or agreed to settle about four-fifths of 2,700 state and federal lawsuits, and took a $273 million charge to cover the costs, a securities filing notes. Pfizer has set aside another $15 million toward wrapping up the rest of the claims. The company has noted that Chantix is an important, FDA-approved medication and effective treatment option for adult smokers who want to quit. Smoking is the number one cause of preventable death in the United States, and the health benefits of quitting smoking are immediate and substantial.
- The company's 10-k that was filed March 1st, indicates that the company is preparing to initiate a shareholder distribution or move forward with an acquisition. Pfizer reported that its cash position had expanded to nearly $10.4 billion. The total represents a 131% sequential and 236% year-over-year increase in cash and equivalents. The total also reflects a heightened willingness to carry cash with the ratio of cash to equivalents increasing to nearly 32% cash and equivalents versus 68% in short-term investments.