This Isn't The Philip Morris You Think It Is

Investor Overview
2.31K Followers
(11min)

Summary

  • Philip Morris is leading the industry transition to smoke-free products, with 42% of revenue now from alternatives like IQOS and Zyn.
  • Strong Q1 2025 results—10.2% organic revenue growth, rising margins, and raised earnings guidance—demonstrate robust financial health and execution.
  • Despite a premium valuation and some regulatory and competitive risks, PM's stable cash flow and dividend growth justify a strong buy rating.
  • PM offers a rare combination of defensive income and growth potential, making it an excellent long-term portfolio candidate for income and value investors.

Iqos Shop Bulgaria

Baloncici

Philip Morris International (NYSE:PM) is known for the iconic Marlboro brand but also for its strategy to create a smoke-free future. It is remarkable that in a sector struggling with declining volumes, public resistance and increasing regulation, Philip Morris has

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2.31K Followers
I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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