Pfizer (PFE) is a research-based biopharmaceutical company. The company’s portfolio includes medicines and vaccines, as well as consumer healthcare products.
The company manages its commercial operations through three businesses: Pfizer Biopharmaceuticals Group, which includes the company’s health business units (except Consumer Healthcare) as well as a hospital business unit that commercializes its portfolio of sterile injectable and anti-infective medicines; Upjohn, which includes the company’s solid oral dose brands such as Lyrica, Lipitor, Norvasc, Viagra and Celebrex, as well as certain generic medicines; and Consumer Healthcare, which is an over-the-counter medicines business.
- Pfizer Inc.'s stock price is down 12.6% in the last 12 months, down 14.5% in the past quarter and down 1.2% in the past month. This historical performance should lead to above average price performance in the next one to three months
EPS decreased from $3.00 to an estimated $2.94 over the past 5 quarters indicating a declining growth rate. Analyst forecasts have recently been raised. Company recently reported better than expected results.
The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemical Manufacturing subsector average. The net income increased by 30.3% when compared to the same quarter one year prior, rising from $3,872.00 million to $5,046.00 million.
The gross profit margin for PFIZER INC is currently very high, coming in at 83.35%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 38.04% is above that of the subsector average.
The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the subsector average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
This company has reported somewhat volatile earnings recently. But, I feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC reported lower earnings of $1.86 versus $3.51 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $1.86).
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in PFE over the next 72 hours.