PM FCF Yield Analysis
Higher than 25% of Consumer Defensive sector peers
Updated 84h ago·SEC filings & market data
Key Takeaway
Philip Morris International’s free cash flow yield is 3.6%, meaning its annual cash profits from operations minus capital spending equal 3.6% of its current market value.
Sector Performance
25th percentilePM
3.7%
Sector Median
7.8%
Sector Avg
7.6%
Prior Period
3.6%(Sep 2026)
Deep Analysis
Philip Morris International’s free cash flow yield is 3.6%, meaning its annual cash profits from operations minus capital spending equal 3.6% of its current market value.
That is below the consumer defensive sector median of 7.7%, placing the stock at the 25th percentile among sector peers. The metric is stable: year-over-year change is not available, while quarter-over-quarter it moved down 2.7%. Recent readings of 3.6%, 3.7%, 3.6%, and 3.5% confirm a flat pattern. A low yield combined with stability suggests limited immediate income opportunity from cash generation, but also no worsening pressure on valuation. This supports the overall NEUTRAL verdict: the stock is not offering an especially attractive cash return relative to peers, yet the stable trend avoids a bearish signal.
Frequently Asked Questions
What does the FCF Yield tell investors about PM?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does PM's FCF Yield compare to its sector?
PM's FCF Yield of 3.7% compares to a Consumer Defensive sector median of 7.8%, placing it in the 25th percentile.
Who are PM's closest peers by FCF Yield?
The closest Consumer Defensive peers by FCF Yield include: MO (7.8%), ABEV (9.4%), WMT (1.8%), ADM (15.1%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PM's Valuation
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View full PM research report →Closest Sector Peers
PM
3.7%
Sector Median
7.8%
Sector Avg
7.6%
How PM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.