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Daily Trading Brief: Pfizer Inc

|About: Pfizer Inc. (PFE)
Summary

The gross profit margin for PFIZER INC is currently very high, coming in at 83.35%.

The debt-to-equity ratio is somewhat low.

PFIZER INC has improved earnings per share by 36.9% in the most recent quarter compared to the same quarter a year ago.

Company Profile

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.

Notes

  • 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.