PFEPFE
US • —
$24.08
P/E
18.40
PEG
—
FCF Yield
—
Rev Growth YoY
+1.4% YoY
Gross Margin
74.8%
Health Score
6/10
D/E Ratio
0.75
Confidence
MEDIUM
Business Snapshot
Pfizer is a large pharmaceutical company engaged in the discovery, development, and manufacturing of vaccines and medicines across therapeutic areas including oncology, immunology, and rare diseases. The company generates significant revenue from its portfolio of established brands and new product launches, with a gross margin of 74.8% reflecting its high-margin proprietary drug business. Pfizer operates in the highly regulated global pharmaceutical market, where it maintains a strong position as a top-tier player with deep research and development capabilities. A defining characteristic of Pfizer is its massive scale and ability to generate substantial cash flows, though recent adjustments related to its COVID-19 product transition have reshaped near-term financial dynamics.
Financial Health
Pfizer's gross margin of 74.8% demonstrates strong pricing power typical of the pharmaceutical industry, while the net margin of 11.8% shows reasonable profitability relative to sales. The balance sheet appears manageable with a debt-to-equity ratio of 0.75x, indicating moderate leverage, and a current ratio of 1.16x, suggesting the company can cover short-term obligations with current assets...
Risk Assessment
- EARNINGS QUALITY — Net income declined 5.3% year-over-year, signalling potential pressure from product mix, patent cliffs, or margin compression.
- FCF / CASH BURN — Free cash flow was not calculable for the DCF model, indicating cash generation may be inconsistent or negative, which limits valuation clarity.
- VALUATION DIVERGENCE — The EV/EBITDA multiple of 21.08x is elevated relative to conventional value thresholds, suggesting the enterprise is priced at a premium to cash earnings.
- INSIDER — 0 insider buys versus 1 insider sell over the last 90 days reflects a net selling bias by company insiders....
Pfizer's gross margin of 74.8% demonstrates strong pricing power typical of the pharmaceutical industry, while the net margin of 11.8% shows reasonable profitability relative to sales. The balance sheet appears manageable with a debt-to-equity ratio of 0.75x, indicating moderate leverage, and a current ratio of 1.16x, suggesting the company can cover short-term obligations with current assets. Free cash flow data is not available in the payload for a full cash flow assessment. The return on equity of 8.4% is relatively modest compared to industry standards. Overall financial health is adequate, with manageable debt levels and margins that provide a solid base for continued operational reinvestment and maintaining the dividend.
- EARNINGS QUALITY — Net income declined 5.3% year-over-year, signalling potential pressure from product mix, patent cliffs, or margin compression. - FCF / CASH BURN — Free cash flow was not calculable for the DCF model, indicating cash generation may be inconsistent or negative, which limits valuation clarity. - VALUATION DIVERGENCE — The EV/EBITDA multiple of 21.08x is elevated relative to conventional value thresholds, suggesting the enterprise is priced at a premium to cash earnings. - INSIDER — 0 insider buys versus 1 insider sell over the last 90 days reflects a net selling bias by company insiders.
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